It was reported last week that HUD Secretary Shaun Donovan told the National Association of REALTORS that the First-Time Homebuyers Tax Credit could be “monetized” and used as a down payment under forthcoming HUD guidelines.
Since then, there have been a variety of news reports — some confirming and others denying that this would in fact happen. Some sources have claimed that the government was backing away from this proposal for a variety of reasons including possible IRS complications. In a May 21 news story, however, NAR reaffirmed the original plan:
“The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site,” Lemar Wooley, a HUD spokesperson, told REALTOR magazine.
Under the guidance that’s under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their down payment. The loans would be repaid with the proceeds from the households’ federal tax credit.
[SOURCE: REALTOR Magazine Online]
More mixed results include problems with newly issued modified loans that were to help homeowners about to go into foreclosure.
Fitch Ratings is slated to release a report this week showing that 65 percent to 75 percent of modified subprime loans will still fall behind by 60 days or more within one year of the loan change. Although some experts believe that reducing the principal amount owed is the best way to keep distressed borrowers in their homes, Fitch found that 30 percent to 40 percent of loans that had lowered principal amounts were still redefaulting after 12 months. Borrowers are redefaulting at a high rate because home prices continue to fall, unemployment is rising, and because of public pressure to help homeowners — even those who are still likely to default even after receiving assistance.
And then there is this. The foreclosure rate seems to have stabilized a bit, but get ready for the second round. Experts know that more foreclosures are on the way. If you are selling your Memphis home right now, it is best to get it priced right for a sale now…because waiting may be more painful. There is a great possibility that more property values will decline during the next big wave of foreclosures.
This is the third of three mixed results regarding the “turning of the corner” on the real estate market and economy in general. More bad news on the horizon is the shuttering of car dealerships nationwide.
It would be great to write a peachy keen blog with all good news. I look forward to that day. Unfortunately, the current news is not all great. So here it is. You will need to plan around it, so there is no sense in sugar coating.
Wednesday, May 27, 2009
Friday, May 22, 2009
Top 10 things You Don’t want to say to your Listing Clients
Top 10 things You Don’t want to say to your Listing Clients
(But may have to say them anyway)
1. I’m worth every penny I charge in brokerage fees.
2. Your Memphis house is nice, but it isn’t special. I’ve been in countless homes, and your home does not stand out. What can we do to remedy that?
3. I collect things too, but I am not selling my house. Put all that stuff away.
4. You way overpaid when you bought this house in 2006.
5. Do you really think a blue room with a neon green stripe going around it will help your home to sell? Your wallpaper is from the early 70’s…its 2009…
6. I love your collection of small kitchen appliances and canisters. Please add more to your counters so I can see all of them. Do you think you can add another 50 photos of your family to your refrigerator?
7. Open houses are a waste of your time and mine. Don't believe HGTV. The Sunday tire kickers in our market are not buyers. This is not Chicago. Today’s QUALIFIED buyers are coming with their agents and can set an appointment up for a private showing almost anytime.
8. Your house hasn’t been cleaned in months.. Not just a few days; it’s obvious that no one living here picks up after themselves.
9. You spent well over $75,000 on home upgrades, but your neighborhood will not support this investment and your home will never appraise for that much for a return on your investment.
10. I love your two cats, but they sure make your house smell.
11. I am sure that you must be a great cook…but your frying grease is all over the wall behind your cooktop and caked on your burners…maybe you could make that look new again?
Ok..so I gave you eleven…just a blogger’s bonus.
Good Luck..
(But may have to say them anyway)
1. I’m worth every penny I charge in brokerage fees.
2. Your Memphis house is nice, but it isn’t special. I’ve been in countless homes, and your home does not stand out. What can we do to remedy that?
3. I collect things too, but I am not selling my house. Put all that stuff away.
4. You way overpaid when you bought this house in 2006.
5. Do you really think a blue room with a neon green stripe going around it will help your home to sell? Your wallpaper is from the early 70’s…its 2009…
6. I love your collection of small kitchen appliances and canisters. Please add more to your counters so I can see all of them. Do you think you can add another 50 photos of your family to your refrigerator?
7. Open houses are a waste of your time and mine. Don't believe HGTV. The Sunday tire kickers in our market are not buyers. This is not Chicago. Today’s QUALIFIED buyers are coming with their agents and can set an appointment up for a private showing almost anytime.
8. Your house hasn’t been cleaned in months.. Not just a few days; it’s obvious that no one living here picks up after themselves.
9. You spent well over $75,000 on home upgrades, but your neighborhood will not support this investment and your home will never appraise for that much for a return on your investment.
10. I love your two cats, but they sure make your house smell.
11. I am sure that you must be a great cook…but your frying grease is all over the wall behind your cooktop and caked on your burners…maybe you could make that look new again?
Ok..so I gave you eleven…just a blogger’s bonus.
Good Luck..
Wednesday, May 13, 2009
HUD NEWS to HELP MEMPHIS HOMEBUYERS
HUD Secretary, Shaun Donovan announced yesterday that FHA Lenders are going to allowed to let First Time Homebuyers use the up to $8000.00 tax credit as a down-payment.
To quote Mr. Donovan, speaking at the Mid-year conference of NAR in Washington:
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home.
“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 downpayment,” Donovan said. According to Donovan, the 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.
It will be interesting to see what the rate is on the bridge loans, but regardless this is a great step in the right direction. I appreciate NAR spear-heading the effort for Memphis home-buyers.
To quote Mr. Donovan, speaking at the Mid-year conference of NAR in Washington:
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home.
“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 downpayment,” Donovan said. According to Donovan, the 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.
It will be interesting to see what the rate is on the bridge loans, but regardless this is a great step in the right direction. I appreciate NAR spear-heading the effort for Memphis home-buyers.
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