Friday, November 13, 2009

The Randomness of People aka My 100th post on this Blog

My paint contractor: "Some lady wants to come in and see your house."

Me: "Uhm. Tell her there's crap everywhere and it's a liability issue."

Painter: "I told her and she yelled at me. She said, 'How am I going to hire you if you won't let me see your work!?"

Me: "Right, because that's how you shop for a painter. You walk around your neighborhood. Would she let some random looky-loo into her own house?"

Painter: "Exactly. Of course not. Then she said, 'I'm not gonna steal your shit."

Wow. Just, wow.

Wednesday, November 04, 2009

Senate May Approve Tax Credit This Week

The U.S. House and Senate are close to an agreement to extend the home buyer tax credit due to expire at the end of this month.

The Senate is expected to vote Wednesday while the House could approve it later in the week – likely before Friday when the monthly report on the unemployment rate will be released.

The measure that is slated to pass would cover homes under contract by April 30. Also, anyone taking the credit from a home purchased in 2010 would be able to take the credit when they pay their 2009 taxes.

First-time home buyers would be eligible for $8,000, but purchasers don’t have to be first-time buyers. Anyone who has owned a home for at least five years could get a $6,500 credit on a new residence.

Income limitations rise under the new plan with individuals earning up to $125,000 a year and couples earning up to $225,000 eligible. People who earn more would be eligible for smaller credits.

Source: The New York Times, Jackie Calmes (11/4/2009)

Monday, November 02, 2009

Extending the Credit | Almost There

The extension and expansion of the homebuyer tax credit is the pending business in the Senate.

After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however.

A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House.

The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature.

The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes.

The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

  • Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
  • New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
  • Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
  • New anti-fraud limitations are imposed.
  • The White House has indicated that President Obama will sign the legislation.

Sunday, October 18, 2009

My Recent Family Trip to Wrigley Field

Friday, October 16, 2009

Underage Home Owners: How Did They Do It?

Before she was old enough to legally drink alcohol, Youth Radio’s Denise Tejada bought a house in the San Francisco Bay Area, one of the most expensive real estate markets in the country. Her brother Wilmer bought his first house when he was 21 and now he’s planning to invest in a second property.

Watch the video to find out how they did it.

Thursday, October 15, 2009

Congress Debating the Tax Credit

Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30.

More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.

Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers.

"The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said.

"[The credit] is a good insurance policy. It's vital to stem the housing price declines."

Opponents argue that the tax credit is too expensive and doesn’t help enough people.

Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million.

Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.

Source: CNNMoney.com, Les Christie (10/14/2009)

Wednesday, October 14, 2009

Prediction: Homes Sales to Rise 11 Percent

Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year, Mortgage Bankers Association Chief Economist Jay Brinkmann predicted in a speech Tuesday at the organization’s annual meeting.

"We still see a concentration in the lower end of the market," Brinkmann said. "The entry-level homes are in demand."

Brinkmann also predicted further declines in existing home prices, with the median falling to $164,200 in the first quarter of 2010.

David Stevens, commissioner of the Federal Housing Administration, concurred, adding that mortgage rates will rise to 5.6 percent by the end of 2010, though not enough of an increase to discourage a 12 percent increase in mortgage applications next year.

Source: Associated Press, Alex Veiga (10/13/2009)

Tuesday, October 13, 2009

Homeownership Still A Good Investment

The American dream of homeownership is still a good bet, financial advisors say firmly.

Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.

There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock.

Source: Associated Press, Dave Carpenter (10/12/2009)

Economists Predict Housing Recovery

Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.

Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.

More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.

Source: Associated Press, Mae Anderson (10/12/2009)

BofA Struggles With Loan Modifications

Bank of America could collect about $6 billion if it meets the deadline set by the federal government to help struggling borrowers for the Making Home Affordable program.

But the Treasury Department released a report last week that showed that only 11 percent, about 95,000, of Bank of America’s delinquent borrowers who are potentially eligible for the program have been given a loan modification. That puts Bank of America at the bottom of the list of major banks involved in the program.

"We're sure working hard," said Ken Scheller, senior vice president for home retention at Bank of America, when asked about his company's low success rate. "We don't want to be down there."

There appear to be multiple problems, not the least of which is that many of the employees handling the modifications are completely new to the business. Angry investors complicate the issue, with 15 percent of them demanding that the bank get their approval for every single case.

Source: Washington Post, Renae Merle (10/12/2009)

Tuesday, September 29, 2009

Getting the Tax Credit Extended: Outlook

Courtesy of Robert Freedman, senior editor, REALTOR® Magazine




What are the chances of getting the first-time home buyer tax credit extended, particularly before its expiration Dec. 1?

No one can know that, of course, but what’s clear is that the leadership in Congress wants it extended -- and if you have the leadership on board, you’re in a strong position.

Yet with health care reform consuming Congress’ attention, even the leadership faces a challenge ensuring the tax credit gets the consideration it deserves.

After sitting down with Linda Goold, NAR’s director of tax policy, and Samuel Whitfield, an NAR legislative representative, I learned the tax credit has really been the economic recovery’s workhorse.

The IRS says 1.4 million households have used the credit. What’s more, a number of independent looks at the credit, including one by Economy.com (owned by Moody’s) and Campbell Surveys, estimate that between 350,000 and 400,000 home purchases would not have happened without the credit. NAR has come up with a similar estimate.

Goold and Whitfield say there’s bipartisan support for extension, and NAR is on Capitol Hill daily reminding lawmakers that the clock is running. But it’s coming down to the wire.

Friday, September 04, 2009

$8000 First-Time Homebuyer Tax Credit Ending Soon

The cash for clunkers program got a lot of publicity about its end date. However, there is a great government program that few people know about that is still available.

Yes, we are talking about the $8,000 first time homebuyer tax credit.

This great program begun under the last days of the Bush administration's Stimulus plans as a repayable $7,500 credit.

With a changing economy and market, it grew into a $8,000 non-repayable credit. The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

That’s right: First Time Homebuyers - FREE MONEY, JUST FOR YOU!

Who Qualifies?

First-time home buyers who purchase homes between Jan. 1, 2009 and Dec. 1, 2009.

To qualify as a “first-time home buyer,” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

Why bring this up now? Well, with the end of the year fast approaching - in a few weeks we will be well into the last quarter of the year - and transactions taking many times longer to close than usual (sometimes due to financing delays) there is little time left for first-time homebuyer’s to purchase a property and be eligible for the credit.

(With the average short sale or bank owned transaction taking around three months to close the time really is now!)

FHA financing will even allow this credit to be used as downpayment funds. The IRS has published a helpful flyer about the program available here.

Tuesday, September 01, 2009

Why Buy? Lifestyle. Why Else?

David Curry, a realtor from Wisconsin, wrote this on his blog:

So if we're in the market, why buy? Do you believe the market bulls or bears? Do you focus on Mary's 5 positive signs, or are you negative and you prefer to side with the cons?

Go right ahead and rent for the rest of your life, and maybe, just maybe your landlord will let you paint a white wall tan. If you ask nicely.

What if you just let the 5 reasons to buy and the 5 reasons to wait cancel each other out, and buy for lifestyle. Housing bull? No thanks. Call me a lifestyle bull. A lifestyle bull in a confidence sapped china shop.

Buy because that house you grew up admiring just came on the market. Buy because you‘re confident in your job status, and that new development just slashed their prices 35%.

Buy because your neighbor cuts his grass at 7 am on Saturday mornings.

Buy because the city heat is just about to make your head explode, and cool lake breezes are better than warm alley breezes any day of the week. Buy because you’ll walk a little taller if you live on that street where the Maples high overhead reach across the street and shake hands with each other.

Above all, buy because you want a better lifestyle for you, for your friends, and for your family, and the purchase you’re contemplating allows you to more easily obtain that lifestyle.

If you need fundamentals to buy, realize that interest rates are unbelievably low and inventory is monumentally high. Realize that whether or not the market creates an identifiable bottom, you're not going to know when it does.

If you're hoarding cash hoping for market bottom balloons to be released from the pink unicorns soaring in the sky, I hope you have fun swimming and boating in your money vat like a decidedly uncartoonish Scrooge McDuck. Just buy because of the 320 months of summer we're all hoping for out of life, way too many of them have already been wasted worrying about 5% market swings, and 5% interest rates.

Monday, August 24, 2009

First-Time Buyer Tax Credit Extension Possible

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Tuesday, August 04, 2009

Uptrend Continues in Pending Home Sales

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to NAR.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said.

“Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30,” Yun said.

Wednesday, July 29, 2009

Yes, You Can Knock Down Walls at One Rincon

Not afraid to get her hands dirty, Mary Ann Schicketanz, of Carver + Schicketanz, prepares to knock down some walls at One Rincon Hill.



I did not know this was allowed in One Rincon's CC&R's. Thanks, CH+D!

Saturday, July 25, 2009

New Rules for Mortgage Brokers

Fed announce proposed rules for mortgage lenders and brokers, effective July 30, 2009.



Some key highlights to consider:
  • Mortgage brokers/lenders to provide good faith estimate (GFE) within three days,
  • Less junk fees and more transparency/explanation of charges,
  • Slowing down the closing process to a seven-day period.
All these changes are being implemented to allow the consumer to "digest" the terms of their loans and what they are exactly agreeing to.

Friday, July 24, 2009

New Federal Rules Protect Mortage Applicants

A new set of consumer-protection rules take effect July 30, including requiring lenders to provide consumers with initial disclosures of the estimated mortgage costs within three business days of the loan application; prohibiting lenders from collecting any fees prior to the consumer receiving the loan-cost disclosures; and prohibiting quickie closings on loans.

Traditionally, many mortgage brokers and lenders collected fees covering appraisal, credit, and other charges at the time of application. The new rules eliminate this practice and prohibit lenders from collecting any fees until the consumer has received the truth-in-lending disclosures and an annual percentage rate (APR) calculation of the loan costs.

The new rules also require lenders to deliver a copy of the real estate appraisal to the home buyer three business days before the scheduled closing on the loan. Previously, federal regulations guaranteed that consumers could request and obtain a copy of the appraisal, but many home buyers were not aware of this right.

Additionally, the rules prohibit quickie closings on loans by requiring a seven-day waiting period after applicants are handed their early disclosures or the disclosures are mailed. This provides applicants a week to think about the transaction and to decide whether it is right for them. Final truth-in-lending disclosures are due three business days before closing.

More from The LA Times.

To view additional articles which also may be of interest to clients in the market for a new home loan, loan refinance, or loan modification, please visit the following:

FTC, state go after alleged loan scammers: To read the full story, please click here.

Administration weighs more foreclosure aid: To read the full story, please click here.

U.S. mortgage rates rise to 5.2%, Freddie Mac says: To read the full story, please click here.

Friday, July 10, 2009

Mortgage Rates Drop This Week

Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.
  • The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
  • The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
  • Five-year ARMs were down to 4.82 percent from 4.88 percent.
  • One-year ARMs fell to 4.82 percent from 4.94 percent.
Source: Los Angeles Times (07/10/09)

Friday, July 03, 2009

Safety Tips for Firing Up This Fourth of July

Print Article Print Article

RISMEDIA, July 3, 2009 -- According to the Hearth, Patio and Barbecue Association (HPBA) more than two-thirds of Americans will fire up their grill, smoker or fryer for the Independence Day holiday this year, the most popular outdoor cooking holiday. Blue Rhino, a leading brand of propane tank exchange, offers some cookout safety & preparation tips for your propane grill, making sure you are ready for your backyard celebration.

barbeque_consumer_top

Gas Grill Cookout Preparation & Safety Tips:

Make Sure Your Tank is Ready:

- A damaged tank - consumers should not try to repair damaged tanks.
- Obsolete tanks - tanks with round- or star-shaped handwheels do not contain Overfill Prevention Devices (OPD) and can no longer be filled.
- Empty tanks - You can get a fresh, ready to grill tank that includes an OPD.

Transport Your Tank Safely - After you buy your tank, secure it upright in a well-ventilated area of your vehicle. Take it directly to the point of use.

Check for Leaks - When attaching your tank to the grill, use soapy water to check the tank and valve for leaks. Open the valve but leave the appliance off while testing. Don’t use a match or open flame to check for leaks. Blue Rhino includes safety and leak checking information on the side of your tank to help.

Lighting Your Grill - Before lighting, always refer to the grill manufacturer’s safety and operating instructions.

Tank Storage - When you store a tank, be sure to keep it in an upright, vertical position. Never store tanks in a garage, building, or enclosed area. Never store an extra tank under your grill.

For more tips, visit www.bluerhino.com.