Randal Group Gab

2011-01-13T12:27:00.003-05:00

Four Tricks and Traps Foreclosure Buyers Need to Know...
Interest in buying a foreclosed home is on the rise, but so are concerns about the risk involved in the process. In a December survey, 49 percent of Americans were at least somewhat likely to consider buying a foreclosure, up from 45 percent in May 2010. But the number of US adults who believed there are disadvantages to buying foreclosures had also increased, from 78 percent to 81 percent over the same time frame. Among those folks who had qualms about purchasing a foreclosure, the top concerns were:
Buying a foreclosure might involve hidden costs,
Buying process itself is risky, and that the home might continue to lose value, after closing.
While there certainly are risks that run with buying a foreclosed home, the most risky way to do it is also the least common method: at the foreclosure auction itself. Auction buyers often don't have the opportunity to fully vet the foreclosure to ensure that they are receiving clear title and/or to make sure they're not getting a lemon. With that said, most foreclosures are resold not at the foreclosure auction, but as an REO (short for Real Estate Owned - by the bank), listed by a real estate broker on the Multiple Listing Service.
When you buy an REO in this way, you have lots of opportunities to use some tricks of the trade, so to speak, to avoid some of the traps you may fear.
Here Four Tricks and Traps for Foreclosure Buyers:
1. As-is means as-is, period. (Most of the time.) Banks have very little interest, inclination or even the logistically necessary resources to execute repairs on your home. Many of these homes are managed by an asset management company in another state, and may not even have a local person besides the agent who can handle large repairs. Generally speaking, bank-owned homes are sold on a very strict "as-is, where-is" basis, which just means that you should expect to take possession of it, if you buy it, in exactly the position and location it is, no matter how defective. Do not walk into a viewing of a foreclosed home, notice how the plumbing is all ripped out of the wall, and make an offer for it, assuming you'll be able to get the bank to "fix" the issue later. Usually, if the bank is willing to do any repairs to a foreclosed home, they do so, on the advice of the listing agent, prior to the home being listed.
If a foreclosure you're considering has obvious property damage, have your contractor stop by with you or gather whatever information you need to get as comfortable as possible with your offer price, assuming that the bank will not be chipping anything in for repairs, before you make the offer.
2. The bank speaks no evil. When it comes to real estate disclosures, the fact is, the bank speaks not much of anything! Many states exempt banks and other types of corporate homeowners from making substantive disclosures about the condition of the property. Even in jurisdictions where the bank is not legally exempt, most banks will simply write across the required disclosures something to the effect that the bank has no knowledge of the property's condition. (Before you protest with a "that's not fair!!" keep in mind that the bank never lived in the property, so most often truly does have no idea of any important facts or details about its condition or location, the things an average home seller would be required to disclose.)
Even in a normal transaction, it behooves a buyer to be thorough in having the property inspected and meticulous about reviewing the resulting inspection reports. But buying a foreclosure ups even that ante, as you have no seller disclosures to highlight particular problems you should have looked at, and none of the usual legal recourse you would have if a “regular” seller made incomplete disclosures. Get a property inspection. A pest inspection. A roof inspection. A sewer line inspection. A pool inspection, if you have a pool and care about its condition.
Yes - all these inspections cost money, but the drama and thousands each of them can save you is well worth it. And read your state’s buyer inspection advisory or similar document (ask your agent), just to make sure you’re aware of all the inspections that are available to you, and work with your agent to determine which ones make sense, and which are not appropriate.
Some insider tips:
Vacant foreclosures often have their utilities disconnected. Work with your agent to make sure the utilities get turned on - even for a single day - so that your property inspector can run the water taps, test the stove and dishwasher, see if the water heater and electrical outlets work, and so forth.
If appliances are there, the bank will probably leave them there, even though they may not have technical “legal” ownership of them, so they may not be included in the contract, like in a "normal" home sale. However, the bank will not give you any sort of warranty on appliances, so try to obtain any warranty coverage you want or need elsewhere - from a home warranty company or, potentially, the original manufacturer/retailer.
3. The contract terms are changing. One thing squarely in the wheelhouses of local real estate pros are local market standard practices. From negotiating practices to which party pays which closing costs, every market is different, and experienced local agents are experts on this information. If you’re buying a foreclosure, though, the bank will often require you to use it’s own purchase contract, rather than the more commonly used state forms. Many times, this is done to advise the buyer of the bank’s refusal to make substantive disclosures (see above) and to change some of the normal practices for your area to the bank’s standard practices.
For instance, if you are buying a home in a contingency state, where you would usually have to sign a document proactively releasing contingencies, the bank’s contract will probably change that, so that your transaction operates on an objection period. In "objection" based transactions, you have a certain period of time in which you must either speak up about your concerns with the property and/or cancel the deal, or you will automatically be presumed to be moving forward with the deal and your deposit money will be forfeited if you change your mind after that date.
If you’ve been making offers on non-foreclosures on the standard contract form, or you’ve bought homes before and think you know the drill, please - READ every word of the contract you sign when you buy a home from the bank, and ask your broker, agent or attorney to explain anything that doesn’t make sense.
4. Expect the unexpected. When you buy a foreclosure, you might end up working with the bank’s escrow company, instead of a company you or your agent selects. And the bank's escrow provider might be slow or disorganized. C’est la vie. The bank might rush you for your deposit money, but take their own sweet time coming up with the necessary signatures on their end to close the deal. Par for the course. You might expect that the bank would be desperate for buyers, and instead find out that there are 20 offers on the same REO. Or, you might be the only offer and still get your aggressively low (but still reasonable) offer rejected, only to have the bank reduce the list price of the home to the same price of your offer! (They often want to see if exposing it to other buyers at the new, lower list price might generate more interest and higher offers.)
When you’re buying a foreclosure, expect glitches, expect your calendar to be derailed, expect the bank to be inflexible and possibly even unreasonable. It’s not overkill to ask your broker or agent to brief you on the common complications they see in REO transactions. Having realistic expectations may keep you from pulling your hair out. And if the transaction turns out to run smooth as silk? You’ll be pleasantly surprised.

2010-11-05T15:10:00.002-04:00

Make hay while the sun shines...
What a great opportunity to take advantage of record low rates.
Just when it looked as if mortgage rates couldn't fall any further, they did.
Rates on 30-year fixed-rate mortgages (excluding jumbos) hit an average of 4.3% in September, the lowest level since 1953, according to Freddie Mac, and are still hovering below 4.5%.

Fifteen-year rates are even more mouthwatering: 3.8%.
Mind you, those are averages.
The most creditworthy borrowers can do even better, snagging rates perhaps a quarter of a percentage point lower.
So what's in this for you?
A lot, potentially.
If you have a credit score of 720 or higher and at least 20% equity in your home, you might use these crazy-low rates to shorten your mortgage term, free up cash, or even add to your real estate holdings, for example.
Whatever you decide, don't wait too long. "The consensus is that rates will gradually move up in the new year," says Frank Nothaft, chief economist for Freddie Mac.
Freddie projects that the average 30-year fixed will hit 5% by the end of 2011.
It's easy to see why more than a quarter of borrowers today are choosing a 15-year mortgage, according to analytics firm Core-Logic, up from about 9% in 2007.
A 15-year lets you save in two ways:
You get a rate that's about half a percentage point lower than that of a standard 30-year, plus you can save tens of thousands by retiring the loan in half the time.
Let's say you took out a $270,000, 30-year mortgage at 5.9% when you bought your house in 2005.
You're paying $1,596 a month in principal and interest and now have a $250,000 balance.
Let's further assume that you roll $5,000 in refinancing costs into a new 15-year mortgage at 3.8% (so the loan is for $255,000).
Your new monthly payment will be a heftier $1,860, but you'll save more than $147,000 in interest over the life of the loan.
What if you can't manage the bigger monthly bite?
Refi to another 30-year and simply pay more in months when you're able to, assuming you're disciplined enough to actually follow through with that plan.
Given that few new mortgages carry prepayment penalties anymore, kicking in extra money shouldn't be a problem, says Keith Gumbinger, vice president of mortgage data tracker HSH Associates.
Caveat: If you have only a few years left on your current mortgage, or you plan to move soon, a refi may not pay off.
Calculate how long it will take to break even on your closing costs, up to three years is typical. Improve cash flowFreeing up cash may be your biggest priority right now.
Maybe you're trying to replenish your emergency fund after being out of work, or you have lots of high-interest credit card debt to pay off.
Maybe your twins got into Harvard, and you need to cover some of the tuition out of current income.
Or maybe you see enough investment opportunities around that you want to lower your monthly payment and invest the difference.
In those cases, choose a 30-year loan.

Using the previous example, if you refinance to a $255,000 30-year at 4.4%, you'll lower your monthly payment from $1,596 to $1,277.
True, you won't save nearly as much in interest as you would with a 15-year.
But that's not so bad, says Matthew Keeling, a certified financial planner in Mashpee, Mass., as long as you do something smart with the extra $319 a month you'll save.
Do your retirement plans call for moving to a house near the beach or a cabin in the mountains?
If you can afford another mortgage payment, you may want to start your search now, while rates are in your favor and prices are depressed.
Ditto if you've been wanting to buy a second home or an investment property, says Jonathan Bergman, vice president of Palisades Hudson Financial Group in Scarsdale, N.Y.
Assuming you're buying the place as a true second home, lenders generally charge the same rate they would for a primary residence.
But if you intend to rent the place out, even if just for a few years until you retire and you need rental income to qualify for the mortgage, it's considered an investment property.
And mortgage rates on investment properties are running about a half to a full percentage point higher. Still, the numbers are "pretty compelling," says Justin Krane, a certified financial planner in Los Angeles.

2010-08-03T15:24:00.001-04:00

Five Reasons to Buy a Home Now...
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.

2010-07-30T14:39:00.001-04:00

Top 6 Reasons to Buy Your First Home Today...
1. Affordability. Based on recent property declines and current interest rates, home affordability has not been higher since it was first tracked over 40 years ago. Your grandparents couldn't have received a better interest rate than you can today.
2. Tax Breaks. The IRS allows you to deduct the interest you pay on your mortgage, your property taxes and, in many cases for those who qualify, some of the costs to buy your home and mortgage insurance. Owning a home is a great way to lower your tax bill.
3. Build Wealth. Unlike paying rent, with each mortgage payment you make, you build equity and you decrease your income tax liability. Owning a home is still the best long-term investment.
4. Appreciation. As home prices have fallen precipitously in today's tough economy, the basis for realizing appreciation in future years is very strong. Historically, even with other periods of declining value, home prices have exceeded consumer inflation. From 1972 through 2005, home prices increased on average 6.5%, according to the National Association of Realtors®.
5. Stability. Knowing you can establish roots and raise a family in one location, free of the desires or needs of your landlord to sell the property you are living in. This is something no other investment provides. You can't live in a stock, and you can't raise your kids in a bond.
6. Independence. Enjoy the freedom to do what you want to your home. After all, it's yours to do what you wish. And, with any improvements you make, you have the ability to benefit from your investment. Try that with an apartment!

2010-07-29T08:55:00.001-04:00

How to End the Recession in a Week...
by John Adams, for the Atlanta Journal-Constitution
At the risk of offending my good friend Don Ratajczak, I am going to put on my economist hat and offer to solve our economic problems in one seven day period. News from the housing front is simply depressing, and the recovery, such as it was, seems stalled. Washington obviously needs new ideas, so here goes:
All agree that the real estate industry represents a huge sector of the economy, and when somebody buys a new house, it employs hundreds of people all over the USA. But people who are worried don’t buy houses, and a large segment of the workforce is either unemployed or worried.
Real estate led us into this recession, and it will have to be real
estate that leads us out. That’s the way it has worked for the past seven recessions in a row, so what do we need to do?
* On Monday, declare a national moratorium on all residential
foreclosures unless the lender has engaged in meaningful attempts at modification and has employed every reasonable strategy to keep the borrower in the house. Also, grant "safe harbor" status to servicers who grant modifications in good faith. That step alone will keep millions in their homes.
* On Tuesday, modify the Garn-St Germain Act to invalidate “due on sale” clauses used by federally chartered lenders to prevent buyers from taking over payments. This would allow thousands of owners to sell to buyers who are able to make the payments, but unable to meet new more stringent underwriting criteria. Lenders should still be able to require reasonable credit and income standards, but assumption should be quick and easy, and at no cost.
* On Wednesday, change the tax code to incentivize real estate investors. Eliminate all income taxes on profits derived on the sale of any home purchased as a bank-owned foreclosure, then renovated and resold within 12 months to an owner-occupant. This would cause bank-owned homes to become much more attractive to private investors, who would rush to buy them as soon as they became available. They would then renovate them with private money rather than looking for a government handout. And it would help stabilize neighborhoods by eliminating vacant houses and substituting owner-occupants.
* On Thursday, declare a six month “federal tax holiday” and simply stand back and watch the economy move into high gear. It is a fact that tax cuts create jobs, and that’s what the real estate market needs more than anything else.
* On Friday, take the day off, but notice that the stock market has recovered and every home in America has jumped in value by ten percent. Everyone will feel more confident, unemployment will decline, and the recession will officially be over.

2010-04-20T17:20:00.000-04:00

Cost Between Renting and Owning Narrows...
The cost difference between buying and renting is as narrow as it has been since 1993, according to a study on homeownership by Marcus & Millichap Real Estate Investment Services for the Associated Press.
The study examined rent and home prices in 45 metropolitan areas and concluded that gap between a payment on a median-priced home and median rent on a similar property is on average only $256.
Marcus & Millichap calculated the number using median home prices for the last three months of 2009, assuming a 10 percent down payment on a 30-year fixed-rate loan at 5.07 percent. It factored in mortgage insurance, but didn’t include either repair costs or tax benefits.
The difference is narrowest in such hard-hit markets as Detroit, Las Vegas, Atlanta, Cleveland, Indianapolis, and Orlando.
Renting remains significantly cheaper in New York, Los Angeles, Seattle, San Diego, San Francisco, and San Jose, Calif.
Source: Associated Press (04/19/2010)

2010-02-23T12:31:00.001-05:00

IRS Clarifies What's Needed to Claim Tax Credit...
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.
While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.
The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”
For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

2010-02-11T14:05:00.002-05:00

Fourth Quarter Home Sales Surge 13.9% ...
Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the NATIONAL ASSOCIATION of REALTORS®.
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008.
Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter, only 30 MSAs showed annual price increases and 123 areas were down.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said. “Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable."
NAR President Vicki Cox Golder said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.
Golder said one of the biggest issues now is for repeat buyer who will have to accelerate their buying plans if they want the expanded tax credit. They have to have a contract by the end of April.
Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
Markets by Region
South: In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.
“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.
A Closer Look at the Condo Market
Metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.
Source: NAR

2010-01-22T18:20:00.000-05:00

6 Surprising Facts About the Buyer Tax Credit...
The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.
To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.
Source: Bankrate.com, Marcie Geffner (01/21/2010)

2010-01-20T09:34:00.004-05:00

IRS Deductions for Georgia Storm and Flood Victims...
Georgians impacted by recent severe storms may be able to increase their standard deduction by claiming their net disaster losses suffered from the federally declared disaster. Provisions of the National Disaster Relief Act allow all taxpayers to claim the casualty loss deduction regardless of their income level. In addition, the law waives a requirement limiting casualty losses to those that exceeded 10% of the taxpayer’s adjusted gross income.
"Eligible taxpayers may be able to deduct disaster losses, even if they don’t itemize, through an increased standard deduction,” said IRS Spokesman Mark S. Green. "This increased deduction is limited to unreimbursed losses. You cannot claim losses that were covered by insurance.”
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A of Form 1040.
The increased standard deduction for disaster losses is a benefit that could help many Georgia residents. More than two-thirds of the returns filed by taxpayers each year claim the standard deduction instead of itemizing deductions.
"It’s also important for taxpayers impacted by this federally-declared disaster to note this on their tax returns,” said Green. "They should write "Georgia/Severe Storms and Flooding” at the top of their tax returns and any other documents filed with the IRS to identify themselves as storm victims eligible for disaster relief.”
For more information on figuring a casualty loss deduction, see IRS Publication 547, Casualties, Disasters and Thefts, and Form 4684 , Casualties and Thefts. Also, the IRS offers Publication 584, a workbook you can use to calculate personal property losses. These helpful forms and publications can be found on the IRS Web site at IRS. gov.
For disaster information call IRS Disaster Hotline at 1-866-562-5227 or call the IRS toll-free number for general tax questions at 1-800-829-1040.
Decatur Dispatch, January 2010

2009-12-22T10:17:00.003-05:00

Refinance your home or move?...
By Lori Rozsa • Bankrate.com
While the tumultuous real estate market has many people hunkered down hoping it will all blow over, proactive homeowners are looking beyond the uncertainty. They're weighing a decision about whether to refinance their current mortgage or trade up to a house they couldn't afford three years ago.
Making a move more alluring, interest rates continue to hover at 4 percent to 5 percent and tax credits of up to $8,000 for first-time homebuyers and up to $6,500 for buyers who have been in their homes for at least five of the last eight years consecutively are available.
But before you take the leap, real estate professionals caution that the same basic rules about buying a home still apply.
Here are four questions to ask yourself:
How long do I plan to stay in the new home? (The rule of thumb is at least five years to make a new mortgage worthwhile.)
Do I really need to move or just want to grab a deal? Can I cover the costs to close and relocate? With every winner, there's usually a loser, and you could be both if you find a great deal on a bigger house but can't sell your current home.
If I stay in my current home, does it make sense to refinance and maybe add that extra bedroom or build a deck to improve the property?
Take a deep breath and analyze what you really need, not what the market seems to be telling you to do.
"The decision depends on the individual. Are they looking to move because their family has grown or has their job changed locations, or do they want a shorter commute? Those are reasons to look at buying," says Bernard Markstein, senior vice president of the National Association of Home Builders in Washington, D.C.
But don't move just for the sake of moving, says Elizabeth Blakeslee, an associate broker with Coldwell Banker Residential Brokerage in Washington, D.C. Now is a great time to buy, but prospective homebuyers should make sure that's what they really should do. "You have to figure out your motivating factors," Blakeslee says. "If you're just trying to get a deal, you might want to think about it a little longer. These low interest rates are certainly a consideration for people, but as with every decision in life, you have to ask yourself, 'What is my goal?'"
Markstein says there are several good reasons to buy a house now. "Rates are historically low; it's essentially a buyer's market. And for people moving up, obviously they won't get as much for their own home as they would have a few years ago. But if they're reasonable and set a good price and they find another house at a good price, the two together could be a real benefit," Markstein says. If you're not really looking to move, but you just don't want to miss the real estate bargain boat, Markstein says it might be smarter to stay put.
"If you look around and say, 'I like my neighborhood, I like the schools and the services, I like my house, and I don't really want to move,' then you have two choices," Markstein says. "You can do a simple refi, and that's straightforward and will save you money in most cases. Or if you have enough equity, you can refinance and add a room or upgrade something in your house." Loans based on actual equity homeowners have sunk into their property for years are worth asking about. If you bought your house in the last four years and didn't put much money down, "I'd say forget" refinancing, Markstein says. Home prices are down around 2003 levels.
"If you've been paying your mortgage for six to 10 years, chances are you have built up a lot of equity," he says, "unless you live in one of the real estate-depressed areas, like Detroit or South Florida, Phoenix or Las Vegas."
Refis for home improvement usually pay off if you stay in your home for at least another three years, Markstein says. Again, the time may be right. Contractors' fees have come down substantially from the real estate boom.
Blakeslee says if you're on the fence about whether to sell and move or stay and improve, do your research. Get your credit score. Find out what kind of mortgage you could qualify for. Look at the tax credit deals which expire June 30, 2010 (although binding contracts must be signed by April 30) and figure out your real motivation. If it's just to save money, you could stay where you are and add a little extra to every month's mortgage payment.
"You'd be surprised how that adds up and saves you money in the long run," Blakeslee says.
And if you're determined to take advantage of this buyer's market? "Contact a competent Realtor. Get busy doing your homework. Have them run an analysis for you on prices in your current neighborhood and prices where you're looking to buy," Blakeslee says. "It's a great time to buy, but all the other basics still apply."

2009-12-13T11:01:00.003-05:00

How to Fight for a Lower Tax Bill Through Returns and Appeals...
With the decline of property values many of us have seen in the last several years and with values not expected to increase dramatically in the near future, many homeowners are faced with the reality that the market value of their homes may be less than their assessed tax value. Our local newspaper, The Atlanta Journal and Constitution recently published what we consider an excellent series of articles on this reality and how you may appeal your tax appraisal if you feel this is the case with your home.
Here are some steps that you could take to perhaps help you pay less:
1. Look at your 2009 property tax bill. If you cannot locate it, you can look it up online. Many counties have searchable databases of residential property.
Metro tax assessors enable you to search for data on individual properties countywide.
Clayton: http://weba.co.clayton.ga.us:8003/indextcm.shtml
Cobb: http://www.cobbtax.org/Search/GenericSearch.aspx?mode=PARID
DeKalb: http://web.co.dekalb.ga.us/taxcommissioner/search.asp
Fulton: http://www.fultoncountytaxes.org/fultoniwr/11_depts_property_taxes.asp
Gwinnett: http://gwinnetttaxcommissioner.manatron.com/Tabs/ViewPayYourTaxes.aspx
2. Check the ZIP code map to see how your house compares with the rest of your ZIP on sales and tax values. Also, what do you know about sales of other homes in your neighborhood? Do home values seem to be going down? If so, the county may have overvalued your house for tax purposes. If you think that’s the case, go to step 3.
3. File a form called a property tax return. List what you think your house is worth as of Jan. 1, 2010. Section C asks you to list last year’s “fair market value” on your land and on your house. Then it asks you to list the value of the land and the house this year. This is where you tell the county the value of your property has gone down. You must send the form to your county tax assessor by April 1. (DeKalb and Gwinnett residents must file by March 1.) The assessor reviews your return and decides whether it reflects your property value. Usually you will receive a response between April and June.
If the county turns you down, you have the right to appeal. This gets a little tricky, but ... you also have the right to appeal if the county reappraises your property (whether you filed a return or not). But if the county doesn’t reappraise, and you didn’t file a return, you can’t appeal. This didn’t matter so much when tax valuations often were lower than actual value. Now, however, tax values are often greater than what your house is worth, which means you’ll be paying too much in taxes. So it’s in your interest to file a return.
File your appeal within 30 to 45 days of receiving your notice (counties have different deadlines). First stop: the county board of assessors. If you can’t reach agreement there, next stop is 1) a Board of Equalization, which is a panel of county residents that hears appeals unresolved at the assessor level, or 2) arbitration. There are two kinds, binding and nonbinding. After that, you may appeal to your county superior court. Note that both arbitration and appealing to superior court carry fees.
More info on appeals: https://etax.dor.ga.gov/ptd/adm/taxguide/appeals.aspx

2009-10-23T11:22:00.005-04:00

Home resales rose in September...
Home resales rose in September to the highest level in more than two years, beating expectations, as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.
The seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas. First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet. "We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent. At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.

2009-09-18T13:30:00.001-04:00

Can You Get a Loan Today...?
Changes in the housing and mortgage industries have prompted many people, including the media, to wonder: "Can you get a loan today?"
The answer is simple: Yes!
Despite the negative headlines over the past year, there's actually plenty of money available for loans. In fact, reports indicate that over $2.7 Trillion in loans were originated in 2009. That's over $1 Trillion more than 2008.
However, mortgages must make sense in today's terms – not the looser standards permitted by lenders a few years ago.
What does this mean to borrowers today?
Lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits.
That means lenders need documented evidence that a borrower is creditworthy and is likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
With interest rates at or near all-time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.

2009-09-06T05:29:00.004-04:00

9/11...
Never forget!
Never again!

2009-08-31T08:06:00.006-04:00

Missing an opportunity...
The $8,000 income tax credit for first time homebuyers (as defined by the US Government) expires as of November 30th, unless the Congress extends or modifies the program.
If you are are first time homebuyer, it is now time to get off the fence.
With less than 90 days left until the program expires (you must close the transaction by November 30th) time is short.
And with the new appraisal and truth in lending requirements for home mortgages, transactions are taking longer to close than earlier this year.
Home prices have not been this low since early this decade and mortgage money is still cheap.
Don't be kicking yourself on December 1st for missing this opportunity, it might never happen again.

2009-08-28T11:23:00.004-04:00

Homebuyer Protection Alert!...
Recent Federal legislation can impact your closing date.
When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative time frame of at least 30 days from the time of the contract acceptance would be a more realistic expectation at this time.
Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.
HVCC: Home Valuation Code of Conduct:
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC, the appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter time frames, conservative expectations are warranted.) Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
HERA: Housing and Economic Recovery Act:
HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.
Under HERA, no fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days. Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.

2009-08-18T12:06:00.005-04:00

Beau...
As I wrote earlier this year, we lost our Yorkshire Terrier, Morgan in February.
We still have our female Yorkie, Bridgett and the two Rag Doll cats, R.C. and Raggs and they bring us much joy.
Dale had been told of a puppy that one of our fellow agents had acquired, a Shorkie, a Yorkshire Terrier/Shih Tzu mix.
I contacted a breeder in Stockbridge, Georgia, Jennifer Williams, and she graciously agreed to meet me so I could see her last male puppy from her then current litter.
I brought Beau home as a surprise on July 1 and I think he has won our hearts, at least Dale's and mine.
Bridgett, Raggs and R.C. are still not sure.

2009-05-14T09:51:00.003-04:00

Georgia Governor Signs Housing Tax Credit Bill...
On Monday, May 11, Governor Sonny Perdue signed legislation into law that creates a new state income tax credit for home purchases in Georgia. The tax credit will apply to purchases of eligible properties between June 1 and November 30, 2009, and is expected to spur activity in the housing market.
Passage of this bill was the top legislative priority for the Georgia Association of REALTORS® in 2009. House Bill 261 provides an income tax credit for the purchase of a single-family residence during the six months between June 1 and November 30, 2009.
The credit amount is the lesser of $1,800 or 1.2 percent of the purchase price. The tax credit is applied over three years, with one-third of the credit available each year. If a the amount of the credit exceeds the taxpayer's tax liability, the unused credit may carry forward to the next tax year. The credit created by HB 261 may be claimed one time per taxpayer.
The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit.
In addition, eligible single family residences include:
New single-family residences; Previously occupied residences that were for sale prior to May 11, 2009. and are still for sale after May 11, 2009;
Owner-occupied residences in which the owner’s acquisition debt is in default on or before March 1, 2009; and
Residences where a foreclosure has taken place and are owned by the mortgagor or the mortgagor’s agent.
This tax credit is in addition to the federal first-time home buyer tax credit, which is available to only those buyers who have not owned a home during the last three years. "I'm proud of Governor Perdue for signing this legislation, and I'm proud to have brought it before the state legislature," said bill sponsor Rep. Ron Stephens (R-Savannah). "This bill will put people back to work, reduce the inventory of unsold homes, and kick-start Georgia's economy."

2009-05-12T16:26:00.002-04:00

$8,000 Federal Tax Credit Can Be Used for Down Payment...
Great news for first time home buyers:
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday, May 12 said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

2009-05-06T15:39:00.000-04:00

New Georgia law freezes property assessment hikes...
Attention homeowners: Your property assessment cannot increase until after January 2011. Legislation Georgia Gov. Sonny Perdue signed into law on Wednesday, May 6 makes sure of that. House Bill 233, sponsored by Rep. Ed Lindsey (R-Atlanta), prevents local governments from increasing the assessments used to calculate property taxes for two years.
Of course, assessments may be lowered, a distinction that is important as counties deal with the effects of another new law that requires assessors to consider foreclosures and other distressed properties when setting property values.
That has led to thousands of homes seeing assessed values fall. Some counties have needed a little extra push to convince them to do that, however.

2009-03-20T10:50:00.005-04:00

Making homes affordable...
If you have a mortgage that is backed by one of the government agencies (Fannie Mae or Freddie Mac), The federal government has launched a new website with online tools that will allow a homeowner to determine if they are eligible to participate in the "Making Home Affordable" loan modification and refinancing program.
The website is: http://makinghomeaffordable.gov
It shares information about how this program works and who is eligible for assistance. This is the same $75 billion program you may have heard of recently in the media.
You should have the following available:
Information about your first mortgage, such as your monthly mortgage statement.
Information about any second mortgage or home equity line of credit on the house.
Account balances and minimum monthly payments due on all of your credit cards.
Account balances and monthly payments on all your other debts such as student loans and car loans.
Your most recent income tax return.
Information about your savings and other assets
Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.
We as Realtors, are committed to helping homeowners avoid foreclosure. We hope you will forward this information to anyone who may need it, and feel free to call or email us if we can further assist you in any way.

2009-02-20T07:48:00.006-05:00

Foreclosure: Is There an Option?...
Foreclosure rates continue to rise in most areas of the country and metro Atlanta has been one of the areas affected the most. And it is expected that this trend will continue for the foreseeable future.
The truth is there are life circumstances that can contribute to a family losing their home to foreclosure, many of which have nothing to do with the current economy. Divorce, job change or loss, illness, a death in the family, all are traumatic life changing circumstances.
Currently, many homeowners are “upside down” in their homes, i.e. they owe more than their home is currently worth. They need to sell due to an unfortunate life circumstance but cannot do so without having to bring cash to closing to settle their mortgage debt, which they are not in a position to do.
Given these realties, the demand for creative pre-foreclosure solutions has risen dramatically. And in an effort to avoid accumulating real estate and bad loans on their books, mortgage lenders have become more and more willing to work out a compromise on the pay off, a Short Sale, where the lender agrees to accept less than what is owed as “payment in full”. The difference in the impact of a Short Sale versus a foreclosure on a homeowner’s credit is significant.
Dale and I have recently completed extensive continuing education courses on Short Sales and have become members of a network of Realtors known as America’s Home Rescue in order to be able to consult with folks that may be affected by life circumstances that, through no fault of their own, may be facing foreclosure and need to sell their home.
In many instances, a Short Sale may be a viable solution but most homeowners are not aware the Short Sale is available to help them though their difficult situation.
Should you know of anyone that may be facing foreclosure or has been affected in some negative way by an unavoidable life changing circumstance, please consider referring them to The Randal Group.
We would be glad to consult with them about their options.
Thank you.

2009-02-17T08:05:00.007-05:00

Our good and faithful friend...
Our good and faithful friend Morgan passed away yesterday.
Despite being showered with all the love in the world and the best efforts of Dominique Rouvet, DVM, at North Hills Animal Hospital and Derek Duval, VMD at Georgia Veterinary Specialists, he was unable to overcome the breathing difficulties caused by his collapsed trachea.
Unwilling to allow his suffering to continue, we made the very difficult decision to have him euthanized yesterday afternoon.
He is now at peace.
"I have sometimes thought of the final cause of dogs having such short lives and I am quite satisfied it is in compassion to the human race; for if we suffer so much in losing a dog after an acquaintance of ten or twelve years, what would it be if they were to live double that time?"
Sir Walter Scott

2009-01-06T11:12:00.001-05:00

New Year’s Resolutions For Success
Ralph Waldo Emerson (1803-1882), philosopher, poet and public speaker, wrote this a long time ago, but his thoughts are still timely for today, especially when we think about making New Year’s resolutions:
To laugh often and love much; to win the respect of intelligent persons and the affection of children.
To earn the approbation of honest citizens and endure the betrayal of false friends; to appreciate beauty; to find the best in others.
To give one’s self; to leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition.
To have played and laughed with enthusiasm and sung with exultation; to know that even one life has breathed easier because you have lived…
This is to have succeeded.
Wishing you every success in 2009!

2008-12-09T07:11:00.005-05:00

Take a Siesta!...
When setting goals and planning our future, we sometimes fail to look far enough ahead. Consider the following story:
An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna.
The American complimented the Mexican on the quality of his fish and asked how long it took to catch them. The Mexican replied, "Only a little while." The American then asked, "Why didn't you stay out longer and catch more fish?" The Mexican said, "With this I have more than enough to support my family's needs." The American then asked, "But what do you do with the rest of your time?" The fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, then stroll into the village each evening where I sip wine and play guitar with my amigos. I have a full and busy life."
The banker scoffed, "I'm a Harvard MBA and could help you. You should spend more time fishing; and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. You would eventually open your own cannery and control the product, processing and distribution. You could leave this small coastal fishing village and move to Mexico City, then Los Angeles, and eventually New York where you will run your ever-expanding enterprise."
The fisherman asked, "But, how long will this all take?" To which the American replied, "15 to 20 years." "But what then?" asked the fisherman. The banker laughed and said, "That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You would make millions." "Millions? And then what?" The American said, "Then you would retire. Move to a small coastal village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."
So . . . what are you working for? The IPO or the good life? Stop working toward "someday," and appreciate your success on this day.
Take time to enjoy the siesta!

2008-11-10T14:21:00.006-05:00

Ten Tips for your Fall/Winter Home Maintenance Checklist...
The weather outside is changing (and the fall colors are gorgeous!), and now is the time to run a check of your home.
Listed below is a simple checklist of ten items to ensure your home is ready for winter.
1. Replace heating and air conditioning filters and set your electric thermostats for winter weather.
2. Fireplace - Check to ensure gas light is working and flu is clean.
3. Sprinkler system - drain the system to ensure water doesn't freeze pipes, and change programming to ensure system is shut-off.
4. Windows - Check caulking to ensure water tight. For wooden windows- open and close all windows to ensure they don't get "stuck" over time.
5. Clean gutters of all debris, winter is typically the wet season in Atlanta.
6. Repair any missing paint, shake or shingles.
7. Check all hand rails and balusters to ensure tightly fit to structure.
8. Check your dryer vents and clear of any debris.
9. Check hoses on toilets and washer (both cold and hot) to ensure no leaks or replacement needed.
10. Cover outside water values after shutoff and drain of system.

2008-11-04T10:31:00.004-05:00

Top Ten Seller Sins...
1. Priceaphobia: The fear that a property will sell for less than a premium price. Price and greed combine to form a drug like addiction to unrealistic expectations. Researchers are split in attributing this to heredity or stupidity.
2. Shagitis: A burning sensation due to the realization that a home is not a castle when placed for sale. Shag carpet is not coming back. Get over it and have it replaced. Halloween is one day a year. Orange counters are ugly every day of the year. Hire a home stager.
3. Pet Addiction: The feeling that everybody loves your pet as much as you do. Symptoms include scripts such as, "His bark is worse than his bite". Or, "The cat must like you to nestle in your lap". Or, "Don't put your finger in the cage".
4. Photorea: A need to keep dozens of old photos hung to distract a buyer's attention from the real property. A variation of this virus includes 'childhood incrementalism'. Monthly photos of the first born that are in chronological order as a buyer ascends the stairs.
5. Pack Rat Plague: Doll collections, old Coca Cola bottles, Civil War rifles, WWII bayonets, mounted swordfish, big game taxidermy, high school trophies, college dioplomas,10k race medals, Toastmaster ribbons, bronze baby booties, salt & pepper shakers, and Grand Canyon placemats. Prepack these items.
6. Additionism: What was the seller thinking when they enclosed the garage? Probably not the same thing a prospective buyer is estimating. Cold winter cars, hot summer sun, faded auto paint, and remodeling funds. Bigger is not always better.
7. Fried Fish Fetish: If you can smell it, you can't sell it! What do cigar smoke, kitty litter boxes, piles of backyard pet poop, and baby diapers have in common? Shorter visits and fewer breaths by agents and buyers.
8. 'As-Is' ism: If a stubborn seller says, "The buyer can take it or leave it as-is"; they usually won't. Buyers 'horribilize' defects. A broken doorbell symbolizes electrical problems. A cracked window means a faulty foundation. Water stains come before roofing problems and future floods.
9. Color Blindness: Webster's dictionary defines a real estate tour as, "Agents caravaning from house to house making fun of decorating disasters". Most color schemes are ephemeral. Navajo white, white washed cabinets, and flocked wallpaper are out. Less is usually more.
10. Audio Selectivism: The ability of a seller to hear only what they want."The buyer must be confused". "The appraiser was in a bad mood". "My neighbor said I wasn't asking enough". There is a difference between hearing and listening.
By: Paul Pastore

2008-10-27T17:00:00.023-04:00

Forty years and counting...
You may have noticed that we edited our profile a bit over the weekend.
It used to read "married almost forty years."
It became forty years last Saturday.
Quite a milestone!
I am now looking forward to forty more.
Our children who live locally, Scott and Amy along with her husband Alan had planned to treat us to dinner at our favorite restaurant in Norcross.
What they had not told us was that they had planned a surprise by inviting my brother Jimmy and his wife Kathy and their daughter Ashley, Dale's sister Joyce, several of our close friends Luke Greene and Celia Harmon and Tom and Mikal Kitchens.
It was a great surprise and made it even better by our son Adam flying in from Colorado for the occasion.
Thank you Scott, Amy and Adam for all your planning and a wonderful dinner and thank you to all our family and friends for sharing this special evening with us.
And thank you Dale for forty great years!

2008-10-24T11:32:00.006-04:00

Existing-Home Sales Rise on Improved Affordability...
WASHINGTON, October 24, 2008 Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate¹ of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007.
Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island,” he said. “The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike.”
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. “This is the first time since November 2005 that home sales have been above year-ago levels,” he said. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August; the rate was 6.38 percent in September 2007.
Yun said there may be market disruptions. “The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners,” he said. “Additional housing stimulus would stabilize prices more quickly, which in turn would bring faster stability to Wall Street. Removing the repayment feature on the first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory.”
Total housing inventory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply² at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July.
The national median existing-home price3 for all housing types was $191,600 in September, down 9.0 percent from a year ago when the median was $210,500. “Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions. These are pulling the median price down because many are being sold at discounted prices,” Yun explained. “The current market is not being dominated by speculative investors. Rather, 80 percent of current buyers are purchasing a primary residence, which is a bit higher than historic norms.”
Single-family home sales increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from a pace of 4.35 million in August, and are 3.8 percent above the 4.45 million-unit level a year ago. The median existing single-family home price was $190,600 in September, which is 8.6 percent below September 2007.
Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 560,000 units in September, but are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price4 was $199,400 in September, down 10.2 percent from a year ago.
Regionally, existing-home sales in the West jumped 16.8 percent to an annual rate of 1.25 million in September, and are 34.4 percent higher than September 2007. The median price in the West was $253,600, down 18.5 percent from a year ago.
In the Midwest, existing-home sales increased 4.4 percent to an annual pace of 1.19 million in September, but are 2.5 percent below a year ago. The median price in the Midwest was $152,500, which is 7.9 percent lower than September 2007.
Existing-home sales in the South rose 2.2 percent in September to a pace of 1.90 million but remain 7.8 percent below September 2007. The median price in the South was $167,200, down 4.1 percent from a year ago.
the Northeast, existing-home sales slipped 1.2 percent to an annual pace of 840,000 in September, and are 7.7 percent lower than a year ago. The median price in the Northeast was $246,800, down 5.4 percent from September 2007.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
© Copyright NATIONAL ASSOCIATION of REALTORS®

2008-10-24T10:48:00.006-04:00

US Home Sales Rise 5.5%, Signaling a Possible Bottom...
Sales of existing homes rose 5.5% in September, a real estate trade group said, offering a glimmer of hope that the housing slump may be starting to bottom.
The National Association of Realtors said the rise in September from the month before was the best showing since July 2003, during the five-year housing boom.
Even with the gain in sales, prices kept falling. The median sales price has dropped to $191,600, down by 9 percent from a year ago.
The report came a day after the Federal Housing Finance Agency said US home prices fell 0.6 percent in August versus July.
The drop, however, was slightly less than the 0.8 percent fall in July, which is perhaps a glimmer of hope for the hard-hit U.S. housing market as it may indicate that the precipitous drop in home prices could be abating.
A huge supply of unsold homes, tighter lending standards and record foreclosures have pushed down home prices.
For the 12 months ending in August, U.S. home prices fell 5.9 percent, and the cumulative decline since the April 2007 peak is 6.5 percent, according to the Federal Housing Finance Agency's House Price Index.
By region, seasonally adjusted monthly price changes ranged from a decline of 1.8 percent in the Pacific Division states of Hawaii, Alaska, Washington, Oregon and California to an increase of 0.4 percent in the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut, the report said.
The FHFA monthly index, formerly called the OFHEO monthly house price index, is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.
FHFA regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.The index was introduced in the Office of Federal Housing Enterprise Oversight's fourth quarter 2007 House Price Index, or HPI, report and has shown less severe price declines than other reports.
© 2008 CNBC

2008-10-16T07:32:00.005-04:00

What’s Next for Mortgages, Consumers...
By Chris Kissell RISMEDIA, Oct. 13, 2008-(Bankrate.com) -When the Federal Reserve meets, we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? Bankrate offers help. We’ve looked at five categories-mortgages, home equity loans, auto loans, credit cards and certificates of deposit-to determine if the Fed’s moves made you a winner or a loser. Here’s a look at mortgages:
Winner: Homeowners with adjustable-rate mortgages
The Federal Reserve’s half-point emergency rate cut may not have any affect on mortgage holders. Changes in the federal funds rate do not directly influence the direction of mortgage rates.
However, Fed rate cuts may have more indirect impacts on some mortgage rates, particularly those associated with adjustable-rate mortgages.
Many ARMs are closely pegged to the London Interbank Offered Rate, more commonly known as LIBOR. When the Fed cuts the federal funds rate, LIBOR rates usually decline correspondingly.
During times of financial stress-such as we are experiencing now-this relationship often breaks down, and the spread between the federal funds rate and LIBOR actually tends to widen.
If that trend reverses-and LIBOR rates drop back closer to the federal funds rate-the Fed’s latest rate cut would be a boon to many homeowners with ARMs. Homeowners with these mortgages could expect to see their monthly mortgage payment decline the next time it resets.
Loser: Consumers looking for instant discounts on fixed-rate mortgages
Cuts in the federal funds rate do not directly impact fixed-rate mortgages. So if you’re shopping for a fixed-rate mortgage, don’t expect the Federal Reserve’s surprise rate cut to send mortgage rates lower.
They may fall. Then again, they may rise.
Take action
The Federal Reserve’s emergency rate cut will not directly impact mortgage rates. Fed actions change the federal funds rate, which is not directly correlated to mortgage rates.
As a result, consumers should not make decisions about their mortgages based on the hope that the Fed’s latest emergency rate cut will send mortgage costs plummeting. Mortgage rates often rise after a Fed rate cut. But they could fall just as easily.
For more information, visit www.bankrate.com.

2008-10-10T11:41:00.004-04:00

Warren Buffett's Reassuring Words On the Future...
As the stock market's wild moves downward have average Americans worried about their financial futures and looking for leadership, it's important to keep Warren Buffett's reassuring words about the long-run in mind.
Here's what he said live on CNBC just a few weeks ago:
"You know, five years from now, ten years from now, we'll look back on this period and we'll see that you could have made some extraordinary (stock market) buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months from now. I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well.
"Just don't borrow money to buy your piece.
Three Buffett-style tips for dealing with Wall Street's ongoing turmoil.
1. "Cash combined with courage in a crisis is priceless"
2. "Dont invest in things you don't understand"
3. "Don't try to catch a falling knife until you have a handle on the risk"

2008-10-05T13:56:00.016-04:00

Good kids...
Our daughter and her husband are both Physics teachers at Norcross High School in Norcross, Georgia. On her Blog, Hayes Habits, Amy published a post this morning entitled "Why I love
teaching" about a group of students in one of her classes and their class Physics project that was performed last week.
She also wrote about her kid's participation in a MDA walk to raise money and to support one of their classmates.
Amy is obviously very proud of this group of kids, and from what I read, rightly so. Check it out. Nice job kids!

2008-10-05T07:00:00.005-04:00

Smart Moves For Real Estate Owners in Turbulent Times...
by John Adams, Copyright 2008.
Recent gyrations on Wall Street and beyond have muddied the financial waters. It’s hard to know just what to do or how to react. And if your largest investment is your home, your course is even less clear.
Here are several moves that I believe are rational and appropriate for the homeowner in today’s economic times:
1. Take a deep breath and relax. Because that is exactly what the Georgia housing market has done.
Over the years, residential real estate has proven to be one of the safest of all investments. And all the predictions of dramatic drops in home values in Georgia have been wrong. While there are some parts of the country where home values have taken a dive, Georgia is not one of them, according to federal regulators at OFHEO.gov.
On average, home prices in Georgia are higher today than ever before. And although appreciation has taken a year off, we have yet to see any decline in average home prices on a year-over-year basis. So it’s OK just to relax.
2. Now is a great time to consolidate your debt and refinance your home loan.
If you carry a balance on credit cards, or you carry a balance on a home equity line of credit, or you owe on a car loan or any type of consumer loan, you may be better off paying these balances to zero and loading up your house with debt.
Rates are low, and the interest may be tax-deductible, lowering your overall interest expense even more. This may be your chance to get a fresh start.
3. If you do refinance, make sure you select a thirty-year fixed-rate loan.
I used to tell clients that it was OK to select a 3 or 5 year ARM if they were sure they were moving from Atlanta within that time period. But I found out that many were so happy living in our fair city that they refused to relocate at the appointed hour, finding a way to stay here. I am persuaded that rates will be higher in years ahead, and those who lock in a low fixed rate today will be glad they did. In addition, if rates happen to go lower, you can always refinance again, although I believe this to be the bottom.
When the stock market stumbles, billions flow from equities to bonds, driving down mortgage rates. When the market recovers, and it will, look for a reverse flow and rates to tick upward.
4. Stop paying extra principal on your home loan, at least temporarily.
If you are one of the financial fundamentalists who oppose all debt, I encourage you to consider this: borrowing against your home is likely the cheapest source of cash you can get, and cash may be king in the months and years ahead.
In my view, if you have extra cash monthly to apply to home loan balances, you are better off to put it in a FDIC insured high yield CD and save it for a rainy day. If you pay it to the mortgage company, it doesn’t lower your monthly payments, and it may be difficult to get it back if you need it.
I know that debt can be dangerous, but it can also be used to improve our lives. In this regard it’s like electricity. We all know that there is danger in the electric socket, yet we tolerate the danger for the benefits it brings us. In addition, your house neither knows or cares that you have a mortgage balance against it.
5. After you have finished refinancing, look for a Home Equity Line of Credit.
In fact, you may be wise to not only put the HELOC in place. It may benefit you to also draw the full balance out, and put that cash in a safe place as well.
This may also prove to be good advice if you have a home equity line with a zero balance. There are disturbing reports of major lenders who are notifying borrowers of seldom-used HELOCs that their lines of credit have ben canceled. This is a bank reaction to perceived lower values for their collateral.
In addition, if you have a line of credit buy rarely use it, the bank probably loses money on your account. Drawing your line out assures you that the bank won’t unexpectedly close the account, and puts you in a stronger cash position.
As with all money moves, it’s smart to discuss them in advance with your financial advisor. Next week, several more ideas for homeowners in today’s market.
This article first appeared in the Atlanta Journal-Constitution.

2008-10-02T08:00:00.002-04:00

Mortgage aid program begins...
Lenders can take loss on loan to help borrowers make payments
From AJC.COM-The Associated Press Thursday, October 02, 2008
WASHINGTON — The government kicked off a program Wednesday that aims to prevent foreclosures by letting an estimated 400,000 troubled homeowners swap their mortgages for more affordable loans.
Lenders, rather than borrowers, will decide whether to participate in the program, which requires them to take a loss on the initial loan. The $300 billion, three-year program is designed to help borrowers who owe more on their loans than their homes are worth. Enlarge this image The Associated Press About 400,000 homeowners are eligible for a program that aims to refinance troubled mortgages.
To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.
“For homeowners in trouble, this may be the help that they need,” Housing and Urban Development Secretary Steve Preston said Wednesday. Officials did not have an updated estimate of how many homeowners were likely to qualify, beyond the Congressional Budget Office’s projection from earlier this year that 400,000 borrowers would participate.
The program, dubbed ‘Hope for Homeowners,’ was passed by Congress this summer as part of a massive housing bill. It is one of several government efforts to stem the mortgage crisis.
Critics, however, call the government’s actions sluggish and inadequate. Earlier action to modify loans, they say, might have prevented a $700 billion financial industry bailout now being debated in Washington.
Executives from Citigroup, JPMorgan Chase, Bank of America and Wells Fargo told lawmakers last month they have been hiring additional workers to put the new program in place.
Still, it is unclear whether the industry will embrace the plan fully. One concern is that investors in mortgage securities must take an immediate loss and can’t recoup their lost money if home prices turn upward again.
Investors would rather modify loans in ways that maintain the ability to “share in future appreciation,” JPMorgan Chase executive Marguerite Sheehan said in written testimony submitted to House lawmakers last month.
On Monday, a group of state banking and law enforcement officials released a report that said nearly 80 percent of borrowers with subprime loans were not on track for assistance to avoid foreclosure as of May.
The report by the State Foreclosure Prevention Working Group criticized the lending industry for making only small changes to loan terms and noted that about one in five loans that were modified over the past year became delinquent again.
“While banks and Wall Street firms continue to report record write-downs of mortgage loan portfolios and securities, the losses do not appear to be flowing down to homeowners in the form of sustainable loan modifications,” Iowa Attorney General Tom Miller, a founder of the state effort, said in a statement.

2008-10-01T04:33:00.004-04:00

Atlanta home prices rising slightly...
By KEVIN DUFFY The Atlanta Journal-Constitution Tuesday, September 30, 2008
Has Atlanta’s home price decline bottomed out?
For three months now, resale prices of single-family homes in the metro area have been inching up, according to new data from the Standard & Poor’s/Case-Shiller Home Price Index.
“Atlanta, Dallas, Minneapolis and Tampa showed improvements in their annual and monthly returns, but all four are still too close to their recent lows to determine if the markets have stabilized,” S&P says.
Over a year’s time, prices in metro Atlanta are down 8.2 percent, much less than the 20-city composite average of 16.3 percent. That index and S&P’s 10-city index both show record annual declines, but the month-to-month change has slowed.
From May to June home prices fell 2.2 percent, whereas from February to April the pace of decline was 6 percent.
“There are signs of a slowdown in the rate of decline across the metro areas, but no evidence of a bottom,” said David Blitzer, chairman of S&P’s index committee.
Atlanta’s prices have increased 1.3 percent since April.
The June to July change was an increase of 0.4 percent. Home prices nationwide peaked in June 2006. Las Vegas, Phoenix and Miami have been the worst performers over 12 months. Prices have fallen 28-30 percent in those cities.

2008-09-30T11:27:00.005-04:00

Proper Pricing...
IT’S A FACT - A well priced listing is one of the most important factors in marketing your property. Properly priced homes sell faster and for more during the first weeks on the market.
IT’S A FACT - The prime marketing time occurs during the first few weeks. You will miss your prime marketing period by setting a list price higher than justified.
IT’S A FACT - A brand new listing is exciting, is shown more and generally sells for a higher price than comparable older listings. Make sure your home is priced correctly from the beginning.
IT’S A FACT - Setting the price too high discourages showings and tends to eliminate the most likely buyers from viewing your home.
During this correcting Real Estate market it is more important than ever to remember the basics when it comes to marketing your home. Properly pricing you home from the start is one of the three basics in marketing your home.

2008-09-29T06:51:00.017-04:00

Buying Bank Owned Properties Painfully Slow but Possibly Rewarding...
An excellent article on the subject authored by John Adams, published on his web site and on AJC.COM:
Last week we talked about the flood of bank-owned homes that have clogged up the residential resale market both nationally and locally.
These "post-foreclosure" houses are the harvest of the exotic financing instruments and the loose lending guidelines of recent years. In many cases, the buyers intended to make the payments, but were overwhelmed by dramatic jumps in interest rates as their adjustable loans reset. Unable to pay the required sums monthly, these owners may have tried to sell. But with little or no equity in the homes, their efforts were to be in vain. After a meaningless foreclosure auction where no investors even attended, these homes were deeded back to the lenders, who list them with local real estate professionals for sale.
Banks call these houses REO properties, which stands for "real estate owned."Yes, the savvy real estate buyer can pick up a bargain, but it's important to be cautious when shopping for these "bank-owned" homes.
Here are some questions I am often asked:
Q: What's the difference between making an offer on a "bank-owned" house as opposed to a typical resale home?
A: The primary difference involves recognizing the challenges of dealing with an institutional seller.For starters, a traditional seller would first get their house in clean, ready to sell condition. Only then would they open the doors to the public. Furthermore, most sellers expect a buyer to request a comprehensive inspection, and are not surprised when a buyer requests compensation for needed repairs.
In contrast, banks expect to sell their REO properties "as-is," and they almost never agree to make repairs or put the property in any condition other than the way it is. The bank will likely grant your request for an inspection, but will almost certainly decline any request for improvements.
Q: Are all these REO houses in extremely poor condition?
A: Some are in almost perfect condition, while others are completely unfit for human habitation. In addition to being poor sellers of real estate, banks have a bad habit of being poor property managers during their period of ownership.Because the house is vacant, it attracts vagrants and homeless people who move in and semi-occupy the house. In cold weather, these occupants may build fires in the fireplace to keep warm, and they sometimes break up kitchen cabinets to use as firewood. In addition, as time goes by, these homes often sink into much worse condition. Thieves steal copper pipes and copper wiring to sell for recycling, and air conditioning compressors disappear overnight. Even so, the banks hope to sell these homes "as-is."
Q: How do I go about making an offer on one of these houses?
A: Here is the next hurdle. When looking at a typical resale house, you can expect the seller to respond to your written offer in hours. They may counter, but today's seller takes every offer seriously, hoping for an eventual meeting of the minds.
Banks do things differently.
When you submit a written offer to a bank, they frequently demand proof from your bank that you have sufficient funds on hand to close the transaction. This must be submitted before the bank will even look at your offer. Another frequent requirement is acceptance of multi-page addendums freeing the bank from any liability for the condition of the property involved. Even after all that, my experience is that most banks have trouble finding anyone with the actual authority to make a decision on selling the house. While some lenders are better than others, it is not unusual for offers to sit on the table for a week or more before someone at the bank gets around to responding.
Q: Any other pitfalls to watch out for when buying from lenders?
A: First, know that this seller is unwilling to give you a General Warranty Deed for the property when you buy. They will insist on delivering title by Limited Warranty Deed, thus preventing you from involving the bank in future title problems. To remedy this shortcoming, it is especially important that you purchase the optional Owners Title Insurance policy from the closing attorney.
Also, when selling REO houses, most lenders insist that you pay for settlement costs, and further require that the closing take place in the office of the seller's attorney. If you want legal representation (and you do), you will have to pay for your own attorney to review all your documents and advise you directly. In my opinion, that is money well spent.
Q: It would seem that the banks would be anxious to sell these properties, and would want to streamline the process, making it easy for buyers. Why all the roadblocks?
A: Banks and lending institutions are heavily regulated, and have internal rules and regulations that must be followed. In addition, its part of a corporate culture permeating the world of banking. Banks just aren't set up to sell real estate. They protect our savings and process our checks and loan us the money we need most of the time, but marketing real estate is just not one of their strengths.
Q: What about buying government-owned houses from HUD? Is that any easier?
A: Unfortunately, it's worse. The government has its own procedure for selling, involving a prioritized bid period during which only owner-occupants may bid. And even if you intend to live in the house, you must accept it in as-is condition.
The bottom line in buying any foreclosed property is to make sure you protect yourself at every step, and have your attorney review all documents with you carefully before you sign anything.

2008-09-25T19:55:00.006-04:00

Oops...
On Monday, September 22, I published a post that was an explanation of the proposed Treasury bailout and what it meant for mortgages. Obviously, that was speculation as to what the effects would be and now all those effects may be moot.
As of this hour, after meetings in Washington all day, the entire proposal may be in jeopardy as Congress has not agreed on the terms of this proposed "bail out".
In retrospect, this is might be a good thing, as one can ask the question, should we give the Secretary of the Treasury a $700 billion dollar blank check without seeing a plan as to how it will be spent?
Something does need, in my opinion, to be done to shore up our economy, but since we did not get in this predicament in one week, I think we can take a few days to ensure that this is done correctly.
I suspect we will only get once chance to get it right.
Stay tuned...

2008-09-22T18:21:00.009-04:00

I will miss hearing his voice...
Larry Munson, the legendary voice of University of Georgia football, suddenly retired Monday. Munson, who has been the play-by-play announcer for the Bulldogs since 1966, will not call Saturday night’s showdown against Alabama in Athens. “I can’t express enough my deep feelings toward the Georgia football fans,” said Munson, 85. “They have been so friendly especially during this most recent period of time. I feel I owe them so much more than I can give. I’ll remember all the great times with the Dogs and have the fondest wishes and good luck toward them all.”
“Larry made the decision over the weekend after consultation with his family, doctor, and close friends,” said Michael Munson, Larry’s son. “The Munson family would like to thank Cox Radio, the University of Georgia and the Georgia people who have been so supportive of Larry throughout his long career and especially the lastSeveral months following his surgery in April, Larry plans to celebrate his 86th birthday this weekend watching the Alabama game with family and close friends.”Munson has been calling only home games for past two seasons. His last game was the Georgia game against Central Michigan on Sept. 6. Georgia won, 56-17.“I want to thank Larry Munson on behalf of this great university for 42 dedicated years of delivering the Georgia Bulldogs to fans on fall Saturday’s around the world,” UGA Director of Athletics Damon Evans said in a press release announcing Munson’s retirement. “I truly appreciate his return at the start of this season from surgery to give us all another opportunity to hear him describe the tradition and pageantry of Georgia football as only he could do it.This is a day that we all knew would come for the Bulldog Nation, Larry Munson is and will always be a part of what is great about being a Georgia Bulldog.”Added UGA President Dr. Michael F. Adams, also in the press release. “Larry Munson has given the bulk of his professional life in the service of the Bulldog Nation and we thank him for it. He has been a unifying element and rallying point for many years. We are grateful for his many contributions and wish for him improved health and many good times to come.”
From AJC.COM By Chip Towers

2008-09-22T16:05:00.011-04:00

What does the treasury bailout mean for mortgages...?
Q: What is the Treasury asking for?
A: The Treasury is asking for $700 billion to buy, own and sell mortgages and mortgage-backed securities. Under the Treasury's proposal, the Cabinet department would be able to buy these assets, sell them and use that money to buy more. The Treasury would have a two-year window to buy securities, beginning with the enactment of the law that would grant the Treasury these powers.
Q: Will I still be able to get a mortgage?
A: It depends upon what type of loan you want.
• Conforming mortgages:
Home loans for $417,000 or less that meet guidelines devised by Fannie Mae and Freddie Mac, the government-controlled housing finance giants. The guidelines require borrowers to have good or excellent credit histories, and to have some equity in their houses -- either by making a down payment (when buying a house) or by having a house that's worth more than the amount borrowed in a refinance.
Mortgages are likely to remain available for qualified borrowers who get conforming loans, as long as they have sufficient equity. To qualify for conforming loans, borrowers might need to have equity of at least 5 percent or sometimes 10 percent or even 20 percent. The amount of necessary equity depends on where the home is, whether it's a condominium and other factors (such as credit history).
People who need to refinance, but owe more than their houses are worth, will not be helped by the powers the Treasury seeks. The Treasury's proposal isn't designed to bail out upside-down homeowners.
• Jumbo mortgages:
Home loans of more than the conforming limit. The jumbo limit varies, depending on location. In some places, it's any mortgage of more than $417,000. In expensive markets such as Los Angeles, it's a loan of more than $729,750. In some places, the limit is in between.
Lenders say jumbo loans, when available, have high rates and fees. This is a result of the credit crunch. If the Treasury's proposal goes through, jumbo loans might become more available and affordable. There's no guarantee of that, though.
• Mortgages insured by the Federal Housing Administration:
Loans for people who have so-so credit histories or who have down payments of only 3 percent or so. Those loans remain available for purchasers and for refinancers who can jump through multiple qualifying hoops.
Q: Help! I've fallen behind on my mortgage and I can't get up! Is the Treasury going to help me?
A: No. The Treasury plan is a bailout for financial institutions, not for homeowners who are in danger of losing their homes in foreclosure. However, Treasury Secretary Henry Paulson contends that the plan will help all homeowners in the long run. "The biggest help we can give to the American people is to stabilize the financial system right now and prevent it from clogging up," Paulson said Sunday in an interview on ABC's "This Week With George Stephanopoulos."
Paulson added: "We've been working to help homeowners for a long time. ... It sure seems to me that, as we buy these mortgage-backed assets, we'll have more leverage in working on the kinds of programs we need to work on. The key question is we want to help those homeowners who want to stay in their home and have the financial ability to stay in their home." So far, Paulson said, most foreclosures are from people who don't want to stay in their homes or never could afford their homes "as a result of irresponsible lending practices."
Q: My house has been falling in value for more than two years. Will this action reverse that decline?
A: No, and it's not designed to. In fact, the sooner house prices hit bottom, the quicker the economy will recover from this credit crisis. Some homeowners might not want values to fall more, but lower prices eventually will make houses more affordable for first-time buyers, as well as for some homeowners who want to move up or move down.
Q: What are the limits on the broad power that the Treasury is asking for?
A: The secretary of the Treasury would be required to submit reports to six congressional committees, twice yearly. The Treasury would have the power to award no-bid contracts without congressional review. Furthermore, according to the proposal: "Decisions by the Secretary pursuant to the authority of this Act are nonreviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." That means no one could sue the Treasury for causing them economic harm. This ban on lawsuits and administrative actions will affect mortgage investors more directly than it will affect homeowners.
Q: How does the Treasury's proposal differ from the Resolution Trust Corp., which the government set up to sell real estate after the savings-and-loan crisis of the 1980s?
A: The Resolution Trust Corp., or RTC, sold the real estate from failed financial institutions.
The Treasury doesn't plan to sell real estate. Its ultimate aim is to prevent financial institutions from failing. The Treasury's plan is an entirely different animal from the RTC. People who refer to the Treasury's proposal as an "RTC-style" bailout are mischaracterizing the plan. You should be skeptical of what they say. Instead of taking and selling real estate, the Treasury plans to buy and sell mortgage-backed securities and possibly mortgages themselves. The goal is to get bad mortgage-related debt off the books of financial institutions all over the world. That, in turn, is supposed to increase the confidence that financial institutions have in one another so that they'll lend money among themselves. The result is supposed to be a stronger global financial system that freely lends to consumers and businesses.
By Holden Lewis • Bankrate.com

2008-09-19T07:09:00.004-04:00

Tips for Helping You Boost Your Credit Scores and Strengthen Your Financial Footing...
RISMEDIA, Sept. 16, 2008-It is a three-digit score that can shape your financial future, whether you plan to buy a new car or qualify for a reasonable mortgage loan to buy the home of your dreams. Your credit score is a determining factor in whether you obtain financing and at what cost, and there’s never been a better time to clean up your credit history and boost your score.
“With today’s tightened credit market and lenders becoming more selective about issuing loans, a good credit score has become more important than ever,” says David Hanna, president of the Chicago Association of REALTORS®. “Lenders consider credit scores when determining the risk associated with a loan application, especially for people looking to buy a home. REALTORS® know well that credit can be the difference between simply finding the home of your dreams and actually buying the home of your dreams.”
The first step in improving your credit score is to know where you stand. Your credit records have been reduced to a three-digit score commonly known as a FICO, or Fair Isaac & Co., score. Each of the three major credit bureaus (TransUnion, Experian and Equifax) have assigned a score that shows how likely you are to pay back a loan on time - the higher the score, the lower your presumed risk of default. By law, you may obtain one free report annually from each bureau online at www.AnnualCreditReport.com. By accessing your credit information one agency at a time, you can get a free credit report three times a year.
The average U.S. credit score is 694, according to Experian’s National Score Index. FICO credit scores can range from 300 to 850 and are based on the length of your credit history, the mix of credit you already have, and your number of recent credit applications.
Once you know your FICO score, you can work toward improving it. But improving your credit score can require time and commitment.
Here are some valuable tips to get you started:
- Pay your bills on time. Your payment history, including late payments and foreclosures, can count for one-third of your credit score. Accounts more than 60 days past due will be indicated on your credit report. As the length of your on-time payments increase, so too will your score.
- Check your credit report for errors. Removing errors, especially those negatively reflecting late payments or unpaid credit, is one of the easiest ways to improve a credit score. Look for expired negative records and file a dispute if necessary.
- Reduce your balances. One-third of your FICO score depends on the total amount of balances you owe versus your total credit limit. Try to keep your balances less than 80% of your credit limit to maximize your score benefit. Start with those credit cards that are closest to their limits.
- Keep older credit lines open. Having a long history of active accounts indicated to lenders that you are a good credit risk. It also accounts for 10% of your credit score. Try to use your oldest cards regularly for small purchases and pay balances each month.
- Use credit - but use it responsibly. This includes having credit cards and installment loans with timely payments. Accounting for 15% of your score, a balanced account including a mortgage payment can help homeowners boost their score.
- Avoid new credit. Opening new credit will lower your average account age. In addition, the number of new applications counts for 10% of your score. Under the Fair Credit Reporting Act, you may limit “prescreened” offers by removing your name from nationwide lists. Apply in moderation and take on new credit only when you need it.
- Check regularly for identity theft. Agencies may only provide your information to those with a valid need, such as a creditor or insurer. In addition, you must give consent for this information to be seen by an employer.
For most, credit is a way of life. Installment payments and credit cards can be useful financial tools if they are kept under control, but many let credit control them.
“A good credit score is a consumer’s financial calling card, and it is important that they do everything they can to boost their score and put themselves on the best financial footing possible,” says Hanna.

2008-09-16T06:57:00.005-04:00

"Son, it's just like being 20, only with something seriously wrong with your damn body."...
This is a quote from an article by Steve Thompson in his AT LARGE column in the September 8, 2008 issue of AutoWeek magazine and in the story is the answer to this question: A kid asks the old guy to describe being 60 (or 70 or 80), and he replies, "Son, it's just like being 20, only with something seriously wrong with your damn body."
And that is the good thing about our memory, as we get older, we can remember the good times and relive those over and over again , even if it is difficult or impossible to actually do them again.
As I approach the ripe old age of 62, I am not yet at that point but I assume that at some time in the future I will express the same sentiment.
As Bob Hope used to sing "Thanks For The Memory".

2008-09-11T08:12:00.001-04:00

9/11...
Never forget!
Never again!

2008-09-09T06:37:00.004-04:00

Fannie, Freddie Takeover Keeps Mortgages Flowing...
The federal government's sweeping takeover of mortgage market giants Fannie Mae and Freddie Mac is expected to have positive short-term benefits to the real estate market and opens the door for the industry to shape the restructuring of the companies.
The NATIONAL ASSOCIATION OF REALTORS® commended the Treasury Department's decision, which it said will bring much-needed stability and continued liquidity to the nation’s mortgage market.
"This demonstrates that the government is clearly committed to keeping the flow of capital uninterrupted, which is crucial to the housing sector and the economy," NAR President Richard F. Gaylord said in a statement Monday.
Fannie and Freddie own or guarantee almost half of the country's $12 trillion in outstanding home mortgage debt.
"Fannie Mae and Freddie Mac play a vital role in the U.S. economy by making fair and affordable mortgage loans available for home buyers and owners," Gaylord said. "Their critical mission must not be interrupted, and Sunday’s announcement goes a long way in making sure that does not happen."
What the Plan Involves
Under the Treasury Department's action, the two government-sponsored enterprises are placed in a government conservatorship and overseen by two government-appointed chiefs, former Merrill Lynch vice chairman Herbert Allison at Fannie Mae and former U.S. Bancorp CFO David Moffett at Freddie Mac.
Daniel Mudd, who led Fannie Mae for the last few years, and Richard Syron, his counterpart at Freddie Mac, have been relieved of their jobs.
The federal government is taking up to an 80 percent stake in the companies and will review their financial condition on a quarterly basis, injecting money into their operations as needed. The government is directing the companies to help stabilize housing markets by requiring them to increase their mortgage funding over the next year and a half.
For the long-term, the companies and their regulator, the Federal Housing Finance Agency, will begin planning for a major reorganization of their operations, away from their current 100-percent, privately owned model.
According to news reports, one of the models being discussed is something akin to a public utility, in which the government sets limits on the amount of annual return on equity to shareholders.
Positive Real Estate Impact
For the real estate industry, the short term impact is expected to be positive, says NAR Chief Economist Lawrence Yun. With the government now explicitly backing the companies' mortgage obligations, the market for the GSE securities will be treated more like Treasurys, thereby exerting downward pressure on rates, he says.
That will help drive a positive cycle of investment as investors return to the market, further lowering rates and generating funds to lenders to expand their mortgage loan operations. That is expected to help speed up housing sales in markets across the country and help stabilize home prices.
The main down side to the federal intervention will be felt by the companies' current shareholders, who will no longer receive dividend payments and whose holdings are diluted by the equity stake of the federal government.
Looking ahead, the directive for the companies and their regulator to start work on their long-term restructuring opens the door for NAR to help shape that process, and the association already has a process underway to do that, say NAR legislative and regulatory affairs analysts.
From: REALTOR® Magazine Online
Copyright THE NATIONAL ASSOCIATION OF REALTORS®

2008-09-08T14:52:00.006-04:00

Morgan is home...
Our Yorkshire Terrier, Morgan, is finally back home after his almost two week stay at the vet to have his collapsed trachea repaired.
As mentioned in an earlier post, the vet inserted a stent into his lower trachea where the problem had occurred. This seems to have done the trick and he is back to normal, as is Bridgette, his crazy cousin, who continues to show that she is the Alpha dog.
We are glad to have him home!
If you ever need emergency help for one of your pets, we cannot say enough good things about Georgia Veterinary Specialists and Emergency Care, especially Dr. Jenya Katz, DVM and Dr. Derek Duval, VMD. Thank you very much!

2008-09-03T09:01:00.002-04:00

Why Buy Now...?
By Seth Weissman (reprinted from Atlanta Life Magazine September, 2008)
Purchasing a home in the next six months might be the smartest thing you’ve done all year
Bottoms of real estate markets never announce themselves with fanfare. Economists generally only determine the exact bottom long after the market has sharply rebounded. My prediction is that when the dust finally settles, the experts will look back on the time period between now and the presidential election as the best time to have purchased a home.Why is this the case? There are several interrelated reasons.
The first is that the housing market in the metropolitan Atlanta area is far healthier than most housing markets in the United States. We’ve seen some price reductions in housing but nothing comparable to other parts of the country. With our region’s population increasing by 150,000 people per year, prices can only go so low because demand is constant. It’s a nice cushion to have.
Second, for the moment, the Federal Reserve (Fed) is more concerned about encouraging growth than controlling inflation. Don’t expect this to last. If inflation remains high, look for the Fed to start raising rates right after the presidential election. This, along with the turmoil in the secondary mortgage market, is likely to drive up mortgage interest rates. This will make the effective cost of housing much higher than it is now even if prices continue to fall somewhat or remain flat. Let’s look at the following example to understand why this is the case.
Let’s say that a buyer gets a good deal on a property at $320,000with a 30-year mortgage for 90 percent of the purchase price at an interest rate of 6.25 percent. The buyer’s monthly mortgage payment will be $1,773.27. Now, let’s say that the buyer gets a great deal on the same house at $300,000 but interest rates on the same 90-percentloan are now 7.25 percent. Even though the buyer is borrowing less, the monthly mortgage payment is $1,841.88. In other words, the buyer who waited for the great price actually ended up paying more for the property than the buyer who paid a little more but got a better mortgage interest rate.
Rising mortgage interest rates could drive housing prices even lower. My bet, based on the above example, is that the effective increase in housing costs resulting from rising mortgage interest rates will not be offset by further decreases in property values.
What does this all mean? The answer is that there is likely a short-term window of opportunity to get the best deal in this down cycle of the housing market.
Where are the best deals? Well, remember that the entire housing market is on sale right now. The houses that are most deeply discounted are foreclosed homes presently owned by various lending institutions. These are sometimes referred to as “REO” properties or real estate owned. It’s not a bad place to start your search for a home. However, there is one major caveat to this suggestion: There is a big difference between price and value. The house that is the most deeply discounted from a price perspective is not always the best long-term housing value. If a house is functionally obsolete, in a less than ideal location and/or in a mediocre school district, the long-term value of the house may not be as good as a higher priced home where these things are not an issue. For buyers interested in value, focus on the following four factors:
1. Location: Buyers want to be close to work, shopping centers, healthcare and recreation. This is even more true with the rising cost of gas.
2. School district: Quality public schools always have been a huge factor for most buyers.
3. Quality: Buyers want a well-built house.
4. Design and functionality: Many houses become functionally obsolete because of a lack of closets, size of bathrooms, layout of kitchens, height of ceilings or architectural design.
If the house is being bought for investment purposes, the price point of the house is far more important than when the house is being purchased to live in. Look for lower priced homes that will appeal to a broad rental market.
If you have been sitting on the fence, it is finally time to move!

Seth Weissman is a senior partner in the real estate and litigation
law firm of Weissman, Nowack, Curry & Wilco, P.C. He can be
reached at seth@wncwlaw.com.

2008-09-03T08:35:00.001-04:00

Update on Morgan...

The surgical procedure for Morgan has been delayed due to the non-availability of the stent that is to be inserted into his trachea. The vets at Georgia Veterinary Specialists are hoping to have the stent this Friday morning and if so will perform the surgery Friday afternoon. As it is necessary to keep Morgan calm so as not to exacerbate his breathing issues, we decided to leave him at the vet until the surgery can be performed. With his crazy cousin Bridgette (notice how she likes to share her toys!)
and the two cats, R.C. and Rags in the house, it is doubtful that he would get any rest.

With Morgan not around, it seems as if Bridgette mopes a bit, as if she realizes he is not here and misses him.
I wonder if this is the case?

2008-08-26T15:44:00.002-04:00

Surgery for Morgan...
We have a house full of pets, two dogs, a male and female Yorkshire Terrier and two Ragdoll cats.
Our oldest Yorkie, Morgan, began experiencing great difficulty breathing last night, to the point that I was concerned that he might suffocate. I had Morgan at our veterinarian, Dominique Rouvet, DVM, at North Hills Animal Hospital first thing this morning and she deduced that he may have an airway blockage but wanted him further examined at Georgia Veterinary Specialists and Emergency Care. After several X-Rays, Morgan was diagnosed with a collapsed trachea, a not uncommon malady in small dogs.
The good news is the problem can be remedied by surgery and the insertion of a stent to keep the collapsed airway open.
The surgery is scheduled for next week and the vet does not expect any complications.
To that end, I wanted to share a story that was forwarded to Dale and I from Mel, our long time good friend from Charlotte.
If you have or ever had a dog, you will truly enjoy this:
A Dog's Purpose

Being a veterinarian, I had been called to examine
a ten-year-old Irish Wolfhound named Belker. The
dog's owners, Ron, his wife Lisa, and their little
boy Shane, were all very attached to Belker, and
they were hoping for a miracle.
I examined Belker and found he was dying of
cancer. I told the family we couldn't do anything
for Belker, and offered to perform the euthanasia procedure for the old dog in their home. As we made arrangements, Ron and Lisa told me they thought it would be good for six-year-old Shane to observe the procedure. They felt as though Shane might learn something from the experience.
The next day, I felt the familiar catch in my
throat as Belker's family surrounded him. Shane
seemed so calm, petting the old dog for the last
time, that I wondered if he understood what was
going on. Within a few minutes, Belker slipped
peacefully away.
The little boy seemed to accept Belker's
transition without any difficulty or confusion. We
sat together for a while after Belker's death,
wondering aloud about the sad fact that animal lives are shorter than human lives. Shane, who had been listening quietly, piped up, 'I know why.'
Startled, we all turned to him. What came out of
his mouth next stunned me. I'd never heard a more
comforting explanation.
He said, 'People are born so that they can learn
how to live a good life - - like loving everybody
all the time and being nice, right?' The
six-year old continued, 'Well, dogs already know how to do that, so they don't have to stay as long .'

2008-08-24T11:47:00.001-04:00

Honest and straightforward...
During my morning walk today I was listening to a talk show on WSB, 750 AM in Atlanta. This was a weekly Sunday morning show, usually hosted by Mike Kavanagh and his program is known as Money Matters. This morning however, Mike was on vacation and the show was hosted by a WSB producer and the guest was Mike Rose, a Senior Mortgage Loan Officer with Bank of America. The subject of the program was mortgages and the Real Estate market, a subject near and dear to me.
What impressed me the most and what I found most refreshing, was that Mr. Rose's answers to all of the caller's questions were always honest and straightforward and to the point. And in several instances, probably not the answer that the caller wanted to hear.
And more of that is exactly what is needed during this correction of the real estate market.
Straight answers to the difficult questions.
Thank you Mr. Rose!

2008-08-22T18:32:00.002-04:00

"Age is a case of mind over matter. If you don't mind, it don't matter" LeRoy "Satchel" Paige...
I recently completed a continuing education course and earned the designation of Seniors Real Estate Specialist (SRES®). I figured that since I am considered a senior (I am a baby boomer born in 1946, but baby boomers do not like to be called "Seniors"as I learned), I need to know what it takes to service this very large group of consumers.
"Satchel" Paige one of the greatest baseball pitchers of all times and a legendary storyteller said: "Age is a case of mind over matter. If you don't mind, it don't matter" and "How old would you be if you didn't know how old you were?" Those sentiments certainly apply to the "Seniors" that I read about in an article this week on the Atlanta Journal and Constitution web site, AJC.COM.
Senior Citizens Services of Metropolitan Atlanta, a local nonprofit, compiled a list of 60 Atlantans over 60 who have made a significant difference. "Atlanta is built on the leadership of men and women, many over 60, who have made amazing contributions, turning this city into an international powerhouse," said Jeffrey Smythe, executive director for Senior Citizens Services.
Consider the gentleman pictured below:
Truett Cathy, 87, founder and chairman of Chick-fil-A, represents the business group. Accomplishments: Pioneered the concept of restaurants in malls. Established the WinShape Foundation in 1984. Winner of numerous humanitarian awards. Quote: "At 87 years of age, any day I can get up and put my shoes on is a good and blessed day!"
If you love Atlanta like we do, thank a senior citizen like Mr. Truett Cathy.

2008-08-22T15:50:00.001-04:00

Our first post...
Welcome to the Randal Group Gab and the first post on our blog.
I am a residential Real Estate Agent living and working in suburban Atlanta, Georgia.
My wife Dale is my business partner in The Randal Group and we both are affiliated with RE/MAX Greater Atlanta, the largest RE/MAX franchise in Atlanta and one of the largest RE/MAX franchises in the country.
Dale is Managing Broker of RE/MAX Greater Atlanta/InTown, an office of 70 plus Real Estate Agents and I handle the day to day interaction with the clients of The Randal Group, the buying and selling of residential Real Estate.
Our hope for this blog is to bring you not only our impressions of the residential Real Estate market in Atlanta, but our impressions of life itself.