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.

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.

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...

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

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

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.

"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".

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

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®

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!

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.

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?