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First-time Home Buyers Drive February Sales Existing-home sales increased in February, reversing losses in January, according to the latest report by the NATIONAL ASSOCIATION OF REALTORS®. However, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to NAR. Existing-home sales— including single-family, townhomes, condominiums and co-ops—rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January. Existing-home sales are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity, according to NAR. Lawrence Yun, NAR chief economist, says first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. "Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February," he says. "Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price." Home Buyer Tax Credit Increases Activity NAR President Charles McMillan says home shopping activity has picked up with housing affordability at a record high. "The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago," he says. "It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring." McMillan notes that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins. Existing-Home Sales Rise in February The national median existing-home price for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal. The median is where half of the homes sold for more and half sold for less. "Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition," Yun says. Housing inventory: Total housing inventory at the end of February rose 5.2 percent to 3.80 million existing homes available for sale, which represents a 9.7-month supply at the current sales pace, unchanged from January. In the six months prior to February, the total number of homes for sale had steadily declined from a record level last July. Single-family home sales: rose 4.4 percent to a seasonally adjusted annual rate of 4.23 million in February from a level of 4.05 million in January, but are 3.6 percent below the 4.39 million-unit pace in February 2008. The median existing single-family home price was $164,600 in February, down 15 percent from a year ago. Existing condominium and co-op sales: increased 11.4 percent to a seasonally adjusted annual rate of 490,000 units in February from 440,000 units in January, but are 13.1 percent lower than the 564,000-unit pace a year ago. The median existing condo price was $172,200 in February, which is 18.7 percent lower than February 2008. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.13 percent in February from a record low 5.05 percent in January. The rate was 5.92 percent in February 2008. Last month’s average mortgage rate was the second lowest since data collection began in 1971. Last week the rate further declined to 4.98 percent. Regional Breakdown Yun says a recovery in the West is much stronger than expected. "Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years," he says. Here's how existing-home sales fared across the country: - Northeast: jumped 15.6 percent to an annual pace of 740,000 in February, but 14.9 percent below February 2008. Median price: $251,200, down 4.8 percent from a year ago.
- Midwest: increased 1 percent in February to a pace of 1.04 million but 14 percent lower than a year ago. Median price: $131,000, which is 7.8 percent below February 2008.
- South: rose 6.1 percent to an annual pace of 1.74 million in February but 11.2 percent below February 2008. Median price: $146,700, down 10 percent from a year ago.
- West: increased 2.6 percent to an annual rate of 1.2 million in February and remain 30.4 percent higher than a year ago. Median price: $204,600, which is 30.3 percent below February 2008.
Source: NAR Read More Video: The Latest Economic Update
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Tax help for strapped homeownersUpdated: 1/22/2009 Article ID: 5254 What is debt relief? This is a key part of the Treasury Department's plan to help homeowners caught in one of the nation’s worst real estate market downturns. It provides help in two ways: For those who’ve lost their homes – either through foreclosure or by handing the keys back to the lender - the new law prevents them from getting saddled with an onerous income tax. For homeowners striving to keep their homes, it provides an incentive to refinance their mortgages without fear of higher taxes.
What was so bad about the old law? When home prices and sales are declining, most homeowners who fall behind in their mortgages can’t simply sell their residences to pay off their mortgages. Instead, they lose their homes in foreclosure, walk away from their properties or sell for whatever they can and give the proceeds to the lenders, in what’s known as a short sale. Let’s say that Jane has a $250,000 mortgage on her home, but can no longer afford the payments. So she sells the home for $220,000 and gives that amount to her lender. Under the old law, the $30,000 difference between the mortgage owed and the payoff would be forgiven debt and treated as income. Thus, Jane would not only lose her home, she would owe income taxes on $30,000. The only way to avoid the tax bill was to either file for bankruptcy or demonstrate insolvency (that the homeowner’s debts including the mortgage exceeded the value of all assets). By contrast, the new law excludes certain forgiven or unpaid mortgage debt from taxable income, retroactive to Jan. 1, 2007. Are there restrictions? Yes, several:
 Caution: Not all states will automatically follow the IRS’ lead in making forgiven mortgage debt tax free. For example, California has not, but legislation has already been introduced to make the state conform to the federal law. Taxpayers can verify whether their states conform. For links to state taxing agencies, see the Federation of Tax Administrators Web site. What should homeowners do if they receive a tax document from lenders showing forgiven income (form 1099-C)? Check to ensure that the information listed on the forgiven debt and the fair market value is accurate, and call the lender if it is not. Source: TurboTax
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Economic Market Pulse: Real Estate Data
A look at the latest existing-home sales and pending home sales data from NAR. Sales Spark Up Both existing-home sales and NAR’s forward-looking Pending Home Sales Index showed marked gains. EHS rose to 4.74 million units, up 6.5 percent from 4.45 million in November. Pending sales rose 6.3 percent, to a reading of 87.7 from 82.5 in November. "Buyers appear to be responding to the drops in home prices and mortgage interest rates," says NAR Chief Economist Lawrence Yun. - December 2008 Existing-Home Sales: 4.74 Million (Seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences.)
- December 2008 Pending Home Sales Index: 87.7 (The Pending Home Sales Index measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.)
Market Optimism Gains Practitioners’ expectations for sales activity over the next six months saw a rebound in January as low home prices helped drive up sales, particularly in the West. Expectations for buyer traffic and overall market activity increased, even as confidence remains low that more sellers will emerge. Results are based on 2,616 responses to 3,000 surveys sent to large and small real estate offices. The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0). Responses are averaged to derive results. 
Lawrence Yun is chief economist of the NATIONAL ASSOCIATION OF REALTORS®.
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Stimulus Advances With Tax Credit Changes
The $790 billion stimulus package hammered out by House and Senate conferees late yesterday increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.
The NATIONAL ASSOCIATION OF REALTORS ® has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators' use of the credit.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.
The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.
Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.
Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Thanks for your time,
Kevin Geraci
Source: NAR, AP, Washington Post, New York Times, Bloomberg, and Wall Street Journal.
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The House has finally passed a new Stimulus Package Designed to put the economy back on its feet. It now moves on to the Senate, where a vote is expected in the coming days.
It provides billions in tax cuts and new spending.
But one thing you won't find in the new $800 billion stimulus are Rebate Checks, as we received last year. Most economists say they were just a temporary "sugar rush," and did little to stave off the recession.
So here's what's in the latest version of the 2009 Stimulus for you:
- Tax cuts: $500 income tax cut for singles, $1,000 for couples...which comes to roughly $15 - $25 per pay check, depending on your income
- For the unemployed: another $25 a week, plus an additional 3 to 6 months in benefits
- For a Family on Food Stamps: roughly another $79 a month
- For First time home buyers: a $7,500 government grant...which Realtors say will be much better than last year's $7,500 loan, which had to be paid back, and had little effect
Republicans claim the House Stimulus plan is far too pork laden, and Senate Republicans may try to cut some of its controversial programs. However, the basics of the tax cuts and benefits for the unemployed are expected to remain in the final version. _______________________
Thursday 1/22/09 UPDATE: New President, but where is new Stimulus?
It's going to happen....the only question is what consumers will get out of the next Stimulus this New Year...and when it will happen. And it now appears taxpayers will not receive another round of Rebate Checks.
It also appears we will not see a new Stimulus until February. President Obama wanted to sign a deal his first day in office, but he now has to battle both Democrats and Republicans in Congress over his plan.
President Obama wants a major stimulus to put the economy on its feet...but some in Congress worry another $800 Billion is just too much. Obama's plan would include money for new jobs, highway and bridge repairs, loans to homeowners, and tax cuts for consumers.
President Elect Obama is proposing the following for 2009:
- $500 Tax Cut for Singles
- $1,000 Tax Cut for Couples
Over the year, this translates to an addition $44 each month, per person, or about $22 in the average paycheck.
It now does not appear taxpayers will receive another round of checks in the mail, however. Critics say the first round of stimulus checks in 2008 did nothing to help the economy, simply giving consumers a quick "sugar rush." They say it helped China more than the US, as many shoppers spent the money on electronics made in China.
However, suppporters of a new round of checks say the only way to get consumers to open their wallets again in 2009 may be with cash in their pockes. Its hard to even notice a minor tax cut in your paycheck.
For questions about the 2008 Stimulus/Rebate program, such as why you never received a $600 Rebate Check, or why your check was smaller than it should have been, you need to contact the IRS.
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Though there are a lot of bank-owned properties available these days, trying to buy one can be risky. With a conventional home purchase, you have all sorts of protections against being taken, but in a foreclosed deal, it’s buyer beware. Here’s how to investigate a foreclosed home:
Skip property listings that charge a fee. Most foreclosure Web sites charge for their listings. But you can get information on foreclosed homes in your area free from local agents. Call local brokers and talk to the agents who specialize in foreclosures in that office.
Banks may put their foreclosed homes up for bidding at auction or simply turn them over to a real-estate broker. If the property has been on the market for less than 30 days, lenders are usually looking for full-price offers. After 30 days they may be willing to accept a lower price. After 60 days you can offer even less.
Pay for a detailed home inspection. This is always a good idea when buying a home but especially so when buying a foreclosed home. Vandals may have stripped fixtures and appliances. What’s more, the utilities have probably been shut off, making it impossible to gauge the shower pressure or test for leaky pipes. If that’s a concern, try to negotiate to have the utilities turned on for inspection before you close on the home. A home inspection usually runs from $250 to $400 and can save you a lot of money if something is wrong with the home’s structure or systems. You need to know what repairs you’re on the hook for to determine whether the price is fair.
Beware: A "sale" might not be final. Don’t rush out to buy furniture. Some states have a redemption period that lets the original homeowner satisfy his or her debt and take back the foreclosed home during a specified period after a foreclosure. For example, a homeowner facing foreclosure because of unpaid homeowners’ association fees might have up to 180 days after a foreclosure notice to pay the fees and reclaim the home, even if it has been “sold.”
Have patience. Banks may take 60 days or more to decide whether to accept your offer on a foreclosed home. “We see a number of these deals fall through because buyers don’t want to wait,” says John Anderson, a real-estate agent in Minneapolis.
Consider title insurance. Even if you aren’t getting a mortgage, you might want to buy title insurance as protection against liens that weren’t disclosed or discovered. It also prevents someone like an ex-spouse of the previous owner from making a successful claim on the home after it’s sold.
Source: Consumer Reports
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If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the NATIONAL ASSOCIATION OF REALTORS® says.
An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.
Under the current $7,500 first-time home buyer tax credit, which must be repaid over 15 years, 264,000 households meet the purchase requirements. Using the same assumptions, with plans to hold their home for a median 10 years, it would mean only 66,000 additional sales.
Lawrence Yun, NAR chief economist, said NAR is advocating a tax credit for any home purchase meeting qualifying underwriting standards. “A home buyer incentive is critical to help reduce housing inventory and stabilize home prices,” he said. “The bigger the incentive, the faster housing can help pull the economy out of recession. The cost to the Treasury would be far less than the additional costs of a prolonged recession with insufficient housing stimulus.”
Analysis of other options shows that if only first-time buyers are eligible and the repayment feature is dropped, it could mean an additional 202,000 home sales. If extended to all home buyers but the repayment feature is retained, the gain would be 181,000 home sales.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said a flexible approach to the tax credit would have added benefits. “A home buyer tax credit also should be allowed to be used as a part of downpayment. This would instantly add an equity cushion for homeowners – a vested financial interest provides the foundation for sustainable homeownership, which helps improve economic stability,” he said.
NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.
Source: NAR
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Staying warm doesn't have to cost a fortune. Here are some ideas from the U.S. Department of Energy for conserving heat and saving money.
When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy in chilly weather doesn't have to break the bank. The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should. The goal: Conserve energy and keep more of your hard-earned dollars in your pocket. Share these ideas with customers and use them for your own house. After all, who doesn't need to save a little money these days? 1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls. 2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long. 3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year. 4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces. 5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer. 6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF. 7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows. 8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes. 9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present. 10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov. These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information. Not sure where to begin? Try the Department of Energy's online energy audit tool at www.hes.lbl.gov. In the long run, a whole-house energy audit is a fool proof way to make a plan to address wasted energy and make a home operate efficiently for years to come. Visit www.natresnet.org to find a qualified auditor in your neck of the woods. Source: National Association of REALTORS
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Refinancing now sounds appealing, but for lots of people, it isn’t all that easy.
Applications for refinances tripled earlier this month after the Federal Reserve promised to buy up $600 billion of mortgage debt. And rates for 30-year fixed mortgages are falling below 5 percent – the lowest in 50 years – but many home owners will have trouble doing the deal.
Having at least 20 percent equity in a home is important. A credit score of at least 720 and a debt ratio that is less than 43 percent are both essential.
Jumbo mortgages are still expensive. A 5/1 adjustable-rate with an initial interest rate for five years and an annual reset is averaging 6.6 percent. Traditional 30-year fixed are at 7.49 percent. Home owners in this situation may have to just ride it out.
Source: Business Week, Lauren Young (12/22/08)
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About one in 10 of the sellers we surveyed said they wished they had made more cosmetic changes to their home before putting it on the market. Even more of those who sold their homes for significantly less than the original asking price expressed that regret.
Perhaps not surprisingly, there’s a whole profession devoted to sprucing up homes. Professional stagers, as they’re called, can transform your home to make it more visually appealing to a broader range of buyers and, ideally, sell more quickly. Here are some tips from professional stagers on what you can do on your own, and how to hire a pro if you’d prefer:
Clear out clutter. Get rid of (or at least store) everything that’s not necessary for living comfortably from day to day. That includes your collections of national-landmark spoons and “Star Wars” action figures. Take the pictures off the fridge. Sweep the piles of papers off your desk. You want potential buyers to be able to see the home, not your stuff. Homes look bigger and more stylish without clutter. But don’t take it to an extreme; empty rooms are rarely as appealing as tastefully furnished ones.
Make it shine. Because so many perfectly polished homes will be on the market, your place should be scrubbed too. Clean everything from the bulbs in your light fixtures to the furnace and water heater. Cleaning makes older appliances look a little less dated. Replace worn carpet and polish wood floors. Consider removing curtains or other heavy window coverings to make the room look more open (especially if you have nice views). Get rid of pet smells too. Give rooms that need it a fresh coat of paint, and tone down bright colors. Every wall doesn’t have to be beige, but remember, you want to appeal to the greatest number of buyers.
Move around the stuff that’s left. Arrange your furniture to highlight focal points like fireplaces. Try to set up a few conversation areas in larger rooms to emphasize their spaciousness.
Or hire a pro. A two-hour consultation with a professional stager will run about $300. A full staging, which includes renting any needed furniture and accessories, can run from $500 to $5,000.
What’s more, you can write off their fees (but not the paint, furniture, or storage unit they suggest you buy). Home staging is considered an "advertising fee" and can be subtracted from any gain on the sale of your home, along with agents’ commissions and legal fees.
Source: Consumer Reports
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Washington, December 15, 2008 A federal mortgage interest buy-down program would help spark the housing market, the National Association of Realtors® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency. NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program. In the letter to FHFA, NAR shared three potential implementation procedures for a federal buy-down plan: - TARP would fund the payment of points at the individual level.
- The Federal Home Loan Banks would raise funds by selling below-market-rate bonds to the Treasury Department for them to make the 4.5 percent interest rates available to lenders.
- Fannie Mae and Freddie Mac would purchase mortgages at the 4.5 percent interest rate but pay lenders the market rate.
“The buy-down program would complement other initiatives and help stabilize, stimulate and revitalize the housing market,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “We must address the foreclosure crisis and increase housing demand. Lower interest rates and foreclosure mitigation are two sides of the same coin. Together they represent the key ingredients to stabilizing the housing market and preserving communities and homeownership.” NAR has calculated that a 1 percentage-point decrease in mortgage rates would result in an additional 500,000 home sales. In addition to suggesting that TARP assets be used to buy-down mortgage interest rates, NAR has recommended other principles that would help create long-term stability by ensuring that safe and affordable mortgages are available throughout the nation: - The higher loan limits passed in the economic stimulus bill earlier this year should be made permanent.
- The federal government should ensure sufficient capital to support mortgage lending in every type of market.
- The temporary $7,500 tax credit for first-time home buyers should be extended to all home buyers and the repayment requirement eliminated.
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. Source: National Association of REALTORS
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Fight Back Against Debt CollectorsIt's happening to more and more of us in today's troubled economy: You receive a threatening call or letter saying you owe money. And if you do nothing... The calls get more frequent, and more nasty to the point of harassment. Are they allowed to do this? And how can you stop them? More and More Receiving CallsThe calls come at all hours of the night....and people say messages like the following are crossing the line. "I am like right now climbing into your family background. I am going to dig up so deep." Every week, I hear from viewers fending off debt collectors. Denise is a law abiding Cincinnati-area mom. But she tells me one day "I got a letter claiming I owed someone 550 dollars."Mike is a Northern Kentucky businessman who tells me he's never fallen behind either. But, says , "I got a call claiming I owed some bill."
More Aggressive than EverAttorney Billy Boward has filed dozens of lawsuits against debt collectors, for using what he claims are harrassing or abusive methods. Among them: Calls like this one, allegedly on behalf of the car-seller JD Byrider, and one of its Florida locations. "Now I am going to have to take it to a different level...."This message was left for a woman who was late on her car payment. "I'm going to turn it up a notch. I'm going to have to put this car on TV as being missing, which I can do. I can go on cable and do that. It's going to embarrass the daylights out of you. It's going to embarrass the daylights out of your mom. And I think you've got kids, too, if I'm not mistaken." One of Billy Howard's lawsuits was filed on behalf of Dane McLeod, whose husband Stanley was behind on the mortgage. Stanley explained he had heart problems and had to be rushed to a hospital by helicopter. The collector's alleged response? "Stanley McLeod you need to call Greentree and get your act together and make a payment on your mortgage. Quit playing games. Why don't you have that helicopter pick you up and bring that payment to the office." 4 months later, Stanley was dead. Know Your RightsSo what are your rights? Consumer advocates say debt collectors: - Can't harrass or lie.
- Can't present themselves as attorneys.
- Can't call before 8am or after 9pm, unless you agree.
- Can't call you once you write, telling them to stop.
And thats the key: Sending them a letter, certified mail. One website -- Fair-Debt-Collection.com -- has sample phone scripts and letters for you to use, if a collector calls you (click above). If you dont take action, you can end up like Kelly Cassidy.... in tears. Kelly says "All I can do is try to correct them...And its hard to do when its someone who doesn't care. That's how I feel!"PostcriptA spokesman for "Greentree Servicing" says they don't comment on pending lawsuits. JD Byrder would not make any comment either. Byrider franchises in Ohio are not involved in this case. You can find out more about your rights -- including a link to that helpful website --regarding debt collection by clicking the link above...so you don't waste your money. I'm John Matarese. |
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H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform– including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
View 2009 FHA and GSE loan limit estimates (PDF: 1.9M)
- FHA Reform– including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program.The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
View 2009 FHA and GSE loan limit estimates (PDF: 1.9M)
FHA Reform Chart (PDF: 112K)
Additional Property Tax Deduction – HERA provides a one-year benefit that will be available to all homeowners. Under current law, property taxes are deductible only if an individual itemizes his/her deductions on Schedule A of their tax return. The new provision will permit a deduction of up to $500 ($1000 on a joint return) for all individuals who utilize the standard deduction and do not itemize. Instructions will be provided on the 2008 tax return when it is distributed at year-end.
- FHA foreclosure rescue– development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 90% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
FHA Foreclosure Rescue Chart (PDF: 87K)
- VA loan limits– temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing– puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization– includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund– Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements– Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
- Modification of $250,000/$500,000 Exclusion – The sole real-estated related "pay-for" among the tax incentives modifies the $250,000/$500,000 exclusion of gain on the sale of a principal residence. Beginning in 2009, the exclusion, as it applies to a second home (or rental property) that is converted to a principal residence will be allocated. When the second home is sold, any gain attributable to use as a second home (or rental property) will be taxed at capital gains rates. Any gain attributable to use as a principal residence will remain excludable, up to the $250,000 and $500,000 limits. A formula is provided for computing the proper treatment of these gains.
View some examples that illustrate the application of this new rule (PDF: 27K)
Source: National Association of REALTORS
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• 1 bath, 1 bdrm single story
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MLS®
$29,900
- Great Price!
St. Bernard, Hamilton County
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Updated through out inc. Kit. Fl, Counter Tops, Sink/Faucet, Oven Range, Cbnts and HW Flrs. New A/C, Lght Fixt. Fresh Pnt and MUCH MORE! Maintenance and worry free living in a quiet nghbrhd. Close to schools, shopping, & hospitals, I-71&75
Property information
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• 2 bath, 2 bdrm 3 story
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MLS®
$89,900
- Reduced!
Westchester, Butler County
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Nice 3rd floor condo w/cathedral ceilings, gas fireplace, walkout to covered balcony, storage room incl,seller offers immediate occupancy. Pool & fitness center community. Minutes to I-75,restaurants,entertainment& shopping. Home warr incl.
Property information
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