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THIS MIGHT BE THE VERY BEST TIME TO BUY OR SELL REAL ESTATE PROPERTY IN HISTORY!!

Why?

Significant government stimulus practices will be running out soon and could negatively affect interest rates, so time is quickly running out to get into the game!

By now you have heard the $8000 First Time Home Buyer and the $6500 Existing Home Owner Tax Credit incentives are scheduled to expire April 30, 2010. It is unlikely they will be extended again. Interest rates remain at record lows right now.

However, you may not have heard the Fed is concluding its program of purchasing mortgage-backed securities by the end of March, 2010. This less advertised “stimulus program” has effectively kept mortgage interest rates at record lows. But chances are, when this government stimulus program stops, interest rates could and probably will increase.  It is unclear right now how fast or how much rates will increase.

So if you are in the market for a new home, or want to move up, down, or out. . . give your friendly real estate agent a call. . . .  DON’T WAIT ANY LONGER. . .DO IT NOW!

The "House-Flipper"

According to current FHA guidelines, if you want to utilize FHA Financing, you are prohibited from doing so if the property you are purchasing has not been in title for 90 days with the current seller.

In my opinion, if a property is sound, meets all inspections, and appraises at or above purchase price any FHA approved purchaser should be able to purchase that house, no matter how long the seller has held title.

If an investor/contractor takes the risk to purchase the house and the expense of preparing it for sale, they should not be restricted in the type of financing available to that property.

I guess FHA has decided that makes sense as well. In a somewhat surprising announcement, FHA has announced that it is waiving the property flipping rule for one year starting February 1, 2010, with regard to subsequent sales by purchasers.  Click here for the 5 pages of waiver conditions.

In the waiver, FHA said it was taking this action to address the foreclosure crisis.

The waiver is limited to sales meeting the following conditions:

• All transactions must arms-length; no identity of interest between buyer, seller or third parties
• Sales w/ 20% increase over seller’s acquisition cost have a few more conditions to meet regarding property condition

Please click here to view all of the guidelines associated with the waiver. All in all, it’s great news for the investors and great news for all potential homebuyers who find and would like to purchase a ‘flip-house’.

If you are interested in flipping houses, email Bill at Bill@BillSwanson.com to get on his ‘preferred investor’ list to get notified of all of the repossessions and foreclosures in your market.

Bill Swanson is an agent with CBSHome Real Estate with over 20 years of experience representing both owner occupants and investors.  CBSHome is an affiliate of the Berkshire Hathaway company.

Did you know that members of the military and certain other federal employees have additional tax credit benefits?

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principle residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010.

 In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after December 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

Congress made it clear that this is the LAST home buyer stimulus. We believe this to be true by all indicators. Don’t miss out on the opportunity provided by this tax credit and today’s low interest rates.

Visit our website or talk to your CBSHOME Sales Associate today to learn more!

Visit IRS.gov for additional details regarding military benefits for the current tax credit and additional tax information for members of the U.S. Armed Forces.

Don’t Let Opportunities Slip By…

If your current home no longer suits your lifestyle, there are two reasons why this may be a great time to make a move.

As Obama’s Administration tries to grasp the economic and housing problems, there is a new player in the game of short sales.  The US Treasury is acting like a referee in a game where the offense (sellers) and the defense (lenders) are not even on the same playing field.  The Treasury announced new guidelines for short sales on November 30th in an attempt to simply the process and improve closing conversions.  A few key factors in the guidelines are:

1)  Mortgage servicers have 10 days to approve or disapprove a short sales request

2)  When the short sale is finalized, the mortgage provider must fully release the borrower from the debt

3) It prohibits mortgage servicing companies from reducing real estate commissions

4)  It caps the aggregate proceeds to subordinate lien holders to $3,000

You can read more about the guidance, but please note it is not a law, in the Reuters article, Treasury Sets Guidance to simplify “short sales.” 

Will this guidance help streamline the process or continue to mask the solution for homeowners who wish to sell their homes and avoid foreclosure?    As noted in the article, “Second lien holders may proceed with a short sale outside of the Treasury program.”  The dismal success of the Home Affordable Modification Program may be a precursor for this guidance and leave us asking, “where is the real solution?” 

What are your thoughts?  What can we do to tackle this growing problem?

What Exactly is an APR?

Annual Percentage Rate (APR) is a way to compare the costs of a loan. Although it’s not perfect, it gives you a nice standard for comparing the percentage costs on different loans. This page covers the basics of APR, and how you can calculate it.

Why Use APR?

Loans can be confusing. Slick lenders can quote a lot of different numbers that mean different things. In an order to reduce confusion, the US Government passed the Truth in Lending Act. One of the provisions of this act is that lenders quote APR to potential borrowers.

What is APR?

APR allows you to evaluate the cost of the loan in terms of a percentage. If your loan has a 10% rate, you’ll pay $10 per $100 you borrow annually. All other things being equal, you simply want the loan with the lowest APR.

APR Limitations

Unfortunately, all other things are not equal. APR can include more than just the interest cost of a loan. On a mortgage, APR might include Private Mortgage Insurance, processing fees, and discount points. There are other fees and charges that may or may not be included in a given APR quote. Therefore, you need to look closely at each and every APR.

You can’t simply rely on an APR quote to evaluate a loan. You need to look at each and every charge and expense related to your prospective loan in order to judge whether or not you’re getting a good deal. In addition, look at the bigger picture – you need to know how long you’ll be using a loan to make the best decision. For example, one-time charges up front may drive up your actual cost on a loan – even though an APR calculation might assume those charges are spread out over a longer lifetime (and therefore the APR would look lower).

APR Example

APR seems really easy, but it’s amazing to watch the numbers (and your costs!) change with different scenarios.

Assume you will borrow $100,000, and the lender tells you you’ve got a 7% interest rate. You also have $1,000 in closing costs. The APR on a 30 year fixed rate mortgage would be 7.10%.

For more information about getting approved for a mortgage, taking advantage of the Homebuyers Tax Credit and finding the right home for your family email bill.swanson@cbshome.com.

Bill Swanson is an agent with over 20 years experience with CBSHome Real Estate.  CBSHOME, a subsidiary of HomeServices of America, a Berkshire Hathaway affiliate. For a no-obligation market analysis of your home, even a quick and easy online evaluation, along with other aspects of Bill’s marketing plan, call or email Bill today!

FHA’s mortgage insurance reserves have dropped far below congressionally-mandated levels, but the agency still has enough of a financial cushion to handle all expected loan losses for the next 30 years, with a multi-billion dollar surplus beyond that.

Officials say there should be no need for congressional appropriations or a Treasury bailout of FHA, and no need for sharp cutbacks in the availability of FHA financing for first-time buyers and individuals with credit issues.

FHA has grown increasingly popular again as other loan programs have disappeared.  During the past several years, FHA’s market share has jumped from barely 2 percent in 2005 to upwards of 30 percent this year. At the same time, however, its delinquency ratios on loans originated during 2007 and 2008 have increased sharply.

FHA is not just for first time homebuyers and does not have any income limits associated with it.  FHA current loan limit in the Omaha area is $271,050, which is more than enough money to buy a 4 bedroom home in many Omaha subdivisions.

To get more information about financing and finding the right house for you and your family contact bill.swanson@cbshome.com.

According to the FBI, mortgage related schemes are up 173% from last year.  Attempts to scam people out of their money is nothing new, however scammers are becoming more sophisticated.  Learning how to spot scams can help you prevent becoming their next victim.

Top Six Scams

Mortgage Fraud- these scams contain some type of material misstatement, misrepresentation, or omission of information.

Unauthorized Credit Card Charges- scamming occurs when unauthorized charges are made on your card and the scammer hopes the victim doesn’t notice or thinks reversing the charges will be too much trouble.

Overpayment Scams- scammers negotiate contracts requiring payment to their victims.  Then the victim receives an illegitimate payment larger than the amount owed.  The scammers instruct the victim to wire the money back to them.

Identity Theft- scamming occurs through use of fraudulent unsolicited emails that use spam to steal identity information.

Insurance Fraud- scammer files a false insurance claim as an attempt to collect insurance proceeds.

Computer Intrusion Scams- scammer claims to need short term financial assistance to see them through a crisis, with the false promise of full reimbursement, and usually offers a cash gift for victim’s assistance.

Here are some tips to help you STAY PROTECTED!

Mortgage debt elimination schemes- beware of email or web-based advertisements that promote elimination of mortgage loans, credit cards, and other debts, while requiring an upfront fee to prepare documents to satisfy the debt.

Foreclosure Fraud Schemes- perpetrators mislead homeowners into believing that they can save their home in exchange for a transfer of the deed and upfront fees.  Always seek a qualified credit counselor or attorney for assistance.

Predatory Lending Schemes- be cautious of lenders who tell you they are your only chance of getting a loan or owning a home, and avoid “no money down” loans.  Be wary of mortgage professionals who falsely alter information to qualify a consumer for a loan.  Never sign a blank document or a document containing blanks.
Useful websites:

www.epropertywatch.com/myhome (free property monitor & alert system)

www.ftc.gov (report suspicious telemarketing calls, mail solicitations, or advertisements)

https://tips.fbi.gov (if you suspect fraud, report it to your local FBI field office)

Information Courtesy of: Buffini and Company

Only 45 days left to make offer, negotiate, and take your dream home to closing. November 30th is the magic day, however Thanksgiving weekend falls inline with the deadline so you should really be closing on the 23rd or 24th to avoid potential delays and forfeiting your $8000 tax credit! Make sure you are being represented by a buyers agent that has a proven full time record. This is no time to settle for anything less.

Ready to buy a home? Lets talk! I can show you any home, Call Kevin Kermeen (402) 426-8250

Ok – we all know about it, we may even be tired of hearing and reading about it, but let’s face it, if you know someone who would benefit from the $8000 tax credit,  now is the time to act.  We have been chanting the mantra about  the tax credit since 2008 and now is the time to get louder about.  In case you haven’t heard – time is running out!  When you think of Mark Johnson, Nebraska Market Manager for HomeServices Lending,  you probably don’t think “loud,” but he was adamant with attendees at the UNMC Real Estate with Honors First Time Home Buyers Seminar on 9/22 about now being the time to act and buy their first home.   With a great selection of homes, some on the lowest interest rates in history, and the $8000 tax credit, why wouldn’t you buy?  Evidence shows that homeowners have approximately five times more personal wealth than renters. What  a great way to jumpstart your path to personal wealth by receiving $8000 from Uncle Sam to buy a home.  If you, or someone you know, could you use $8000 towards their future, contact CBSHOME today!

http://www.wowt.com/home/headlines/60415652.html

Why buy or list a home in 2009 compared to 2010?

As you can read from other blogs the importance of the first time homebuyer tax credit expiring Dec 1^st of 2009.  Many people do not realize what is going to happen to mortgage interest rates after December.  The Federal Reserve announced on November 25^th, 2008 and again on March 18^th they were going to buy Mortgage Backed Securities – these securities are backed by Fannie Mae, Freddie Mac and Ginnie Mae and allow mortgage companies like CBSHOME Mortgage and others to issue conventional, FHA and VA loans to borrowers.

The Federal Reserve has committed to buy $1.25 Trillion dollars by the end of the year.  With this weekly purchase of 20 to 30 Billion dollar’s a week has really helped subsidize mortgage interest rates.  What will happen to interest rates once a demand of $1.25 trillion dollars is out of the market?  Some economist’s have estimated that the Federal Reserve purchase of MBS has kept interest rate 1% below normal market.

With the opportunities of the tax credit, it is a great time to list your home if it is in the first time homebuyer’s price range and take advantage of these low interest rates to upgrade to another home.  We may never see interest rates these low again.

If you have not owned a home in the last 3 years- you will probably never see an incentive as strong as $8000 tax credit and these low of interest rates ever again.

Today’s big news is the new federal regulations regarding real estate mortgage closings.

The fours key elements you need to know:

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact and will dictate the closing date.

2. Upfront fees cannot be collected by the lender (except for credit report fee) until initial disclosures are received.

3. The homebuyer must be provided with a copy of their appraisal a minimum of 3 business days prior to closing.

4. An increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires the TIL disclosure to be revised and reissued to the homebuyer. The homebuyer must receive a revised TIL disclosure at least 3 business days before closing, providing the homebuyer with the time required to determine if the homebuyer is comfortable with their loan choice.

Potential impacts to the APR:

• Unlocked Rate
• Change in loan amount
• Product change
• Rate re-lock due to market improvement
• Change in closing date
• Changes to fees, inclusive of settlement agent fees

The combination of these items will make anything less than 30 days closing very difficult and 45 days is a more likely scenario. Now more than ever the buyer, lender, real estate agent and title agent will need to communicate and cooperate to ensure a successful and timely closing.

For those who may still want to take advantage of the $8,000 tax credit; it is imperative that you start your search for your new home as soon as possible. Remember, you have to close on your new home prior to December 1st to qualify.

For a more detailed handout outlining the new mortgage process, complete with a sample ’closing calendar’ email bill.swanson@cbshome.com.

Bill is an agent with over 20 years experience at CBSHome Real Estate; an affiliate of Berkshire Hathaway.

Ready to give your soul for a loan in these difficult economic times? In Latvia, where the crisis has raged more than in the rest of the European Union, you can.

Such a deal is being offered by the Kontora loan company, whose public face is Viktor Mirosiichenko, 34.

Clients have to sign a contract, with the words “Agreement” in bold letters at the top. The client agrees to the collateral, “that is, my immortal soul.”

Mirosiichenko said his company would not employ debt collectors to get its money back if people refused to repay, and promised no physical violence. Signatories only have to give their first name and do not show any documents.

“If they don’t give it back, what can you do? They won’t have a soul, that’s all,” he told Reuters in a basement office, with one desk, a computer and three chairs.

Wearing sunglasses, a black suit and a white shirt with the words “Kontora” (office) emblazoned on it, he reaches into his pocket and lays out a sheaf of notes on the table to show that the business is serious and not a joke.

Latvia has been the EU nation worst hit by economic crisis.

Unemployment is soaring and banks have sharply reduced their lending, meaning that small companies offering easy loans in small amounts have become more popular.

Mirosiichenko said his company was basically trusting people to repay the small amounts they borrowed, which has so far been up to 250 lats ($500) for between 1 and 90 days at a hefty interest rate.

He said about 200 people had taken out loans over the two months the business was in operation.

Luckily, for those of you living in Nebraska, there are still plenty of loan options for those that would like to buy a home. Contact Bill for more information about finding the right loan program and home for you and your family.

Email bill.swanson@cbshome.com today!