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Monday, October 13, 2008
Robert J Russell Financial Update Newsletter
Whenever we put a house on the market, sellers will ask us " Where will you advertise it ?"
Wednesday, October 08, 2008
Pending sales hit 14-month high
By Inman News, Wednesday, October 8, 2008.
Inman News
Pending sales of U.S. resale homes rose 8.8 percent in August compared to the same month last year, the National Association of Realtors reported today, rising to the highest level since June 2007.
The index offers an indication of future sales, as it measures the volume of signed contracts for sales transactions that have not yet closed -- sales are typically finalized within one or two months of signing, though some deals fall through before the transactions are closed.
"It's unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we're hopeful most of the increase will translate into closed existing-home sales," said Lawrence Yun, NAR chief economist, in a statement.
NAR's Pending Home Sales Index reached 93.4 in August -- an index level of 100 is equal to the average level of contract activity in 2001, which was the first year to be examined for the index and first of five straight record years for sales of resale homes.
Regionally, the index rose 37.8 percent in the West, 6.6 percent in the Midwest, 2 percent in the Northeast and sank 2.1 percent in the South in August compared to the same month last year. The nationwide index rose 7.4 in August compared to July.
Monday, October 06, 2008
Under-employed and under the radar
A growing number of people are working part-time jobs because they can't find full-time work, or abandoning their job search altogether.
By Jessica Dickler, CNNMoney.com staff writer
Last Updated: October 3, 2008: 2:00 PM ET
NEW YORK (CNNMoney.com) -- The economic crisis has taken a severe toll on the nation's workforce. But while much of the discussion centers around layoffs and unemployment, a growing number of Americans are becoming under-employed - struggling to pay their bills on a smaller salary, or completely giving up on finding any work.
Unemployment claims have climbed to 7-year highs, but the number of people who have settled for part-time work or given up on finding a job altogether is the worst it's been in over 14 years, but isn't included in the official unemployment rate.
Because of the slowing economy and credit crunch, companies are not only laying off workers, but also scaling back hours and shifting some full-time employees to part-time shifts. That can make it extremely difficult for those workers already having trouble making ends meet in the face of higher gas prices and mounting expenses.
"Even workers who hold onto their jobs during a downturn can suffer on this dimension," according to Heidi Shierholz an economist at the Economic Policy Institute, a research group based in Washington. "Those additional 10 hours of work can be the difference for a family being able to make their rent, fill their gas tank, heat their homes."
The under-employment rate, which counts those without jobs who have become discouraged and stopped looking for work, as well as part-time workers who want full-time jobs, rose to 11% from 10.7%, the highest rate since April 1994, according to the Labor Department's monthly jobs report.
The report also breaks down the specific number of people working part-time jobs because they couldn't find full-time work or their hours had been cut back due to slack conditions, which jumped by 337,000 people to 6.1 million. That's the first time there have been more than 6 million part-time workers wanting full-time jobs since 1993.
That reading is up more than a third from a year ago, the biggest 12-month jump since the period right after the Sept. 11 terrorist attacks. Other than that short 2001 spike in the reading, there hasn't been a jump like this since the deep recession of 1982.
Those numbers really hit home for people like Sherida Jones, 48, who lost her job as a senior mortgage loan processor and underwriter in February 2007. Since then she's been unable to land a comparable job in the mortgage industry.
After her unemployment benefits ran out, Jones began waiting tables at a Mexican restaurant in her town of Lewisville, Texas.
Her part-time position pays $250-$350 a week - a far cry from the $72,000 a year she made as a loan processor, but Jones says she is quick to pick up extra shifts when she can to help make ends meet. She has never stopped looking for a full-time job.
"At this point I will take anything," Jones said.
Are you underemployed? Has your employer recently cut back your hours? Have you been forced to take a part-time job for lack of full-time work?
Wednesday, October 01, 2008
Free Real Estate Advice Conference Call - Sat Oct 4th
I will be hosting a FREE Real Estate Advice Conference Call on Sat Oct. 4, 2008 at 10am Central Time. You will have the opportunity to ask a Licensed Realtor in the State of Texas any Real Estate related question concerning topics such as:
* When is the best time to sell a House ?
* When is the best time to buy a House ?
* Is Staging a house important ?
* Should you buy first or sell first ?
You ask the questions and I will answer them. Calls are anonymous and this is your opportunity to ask all Real Estate related questions.
To get your Dial In Conference Call Number and Access Code - email me at wediditagaingroup@yahoo.com
Limited Attendance - RSVP Today!
If you have any questions - call me 972-679-9029 or visit http://www.robertjrussell.com
The Consumer Bailout That Nobody Knows About
RISMEDIA, Oct. 1, 2008-As congress considers various bailout proposals for the financial system, there is a little known ‘bailout’ for home owners that has already been enacted into law, according to Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. Section 1403 of the new housing bill that was signed into law on July 30, 2008 (HR 3221) requires mortgage servicers to modify loans for homeowners and help them avoid foreclosure as long as three requirements are met:
1. Default on the mortgage either has already happened or is “reasonably foreseeable”
2. The home owner is living in the property as his or her primary residence
3. The lender is likely to recover more through the loan modification or workout than by forcing the home owner into foreclosure
“The fact is that this law is effective immediately, and most distressed home owners are simply not aware that they have this option,” Nicholas said. Borrowers make their monthly payments to mortgage servicers, and servicers keep a portion of the payment as their profit while sending the rest to the Wall Street investors who actually own the mortgage. “This law requires servicers to act in the best interest of all their investors and obligates them to modify your loan if you can afford the modified loan terms and if they are likely to recover more for their investors by working with you than by going all the way through the foreclosure process,” Nicholas said.
When negotiating a loan modification with your mortgage lender, it is advisable to follow this four step process:
1. Make sure you are dealing with your lender’s loss mitigation and/or work out department.
2. Write a hardship letter demonstrating job loss, serious medical condition, balloon payment coming due, adjustable rate reset or some other financial calamity that will make it impossible for you to continue making your mortgage payments as scheduled. Unless you are in imminent danger of default as required by this new law, lenders are not likely to work with you.
3. Send the lender your financial statements, employment records, tax returns and bank statements demonstrating how you would be able to afford the modified loan terms under your present financial circumstances
4. Send the lender a current appraisal of your home or some documentation on recent comparable sales in your neighborhood demonstrating the current value of your home. “The key is to demonstrate how the lender is likely to recover less money through foreclosure than they would by working with you in your proposed loan modification plan,” Nicholas said.
Here is a sample letter that you can use during your renegotiation:
http://www.cmpsinstitute.org/pdf/SampleLoanModificationRequest.pdf
It may be advisable to consult with an attorney - especially if you qualify for a loan modification under the law and your lender still refuses to work with you.
Tuesday, September 02, 2008
317 Crepe Myrtle - Murphy, Texas
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Tuesday, August 12, 2008
New Housing Rescue Bill Summary
The "American Housing Rescue and Foreclosure Prevention Act of 2008" (H.R. 3221) was signed by President Bush on July 30, 2008. This measure provides mechanisms to help the troubled housing market as well as tighten lending practices and reform financial institutions.
New Homebuyer Tax Credit - For qualifying home purchases after April 11, 2008 and before July 1, 2009, the Act provides eligible first-time homebuyers a refundable tax credit equal to the lesser of 10% of the purchase price of a principal residence or $7,500 ($3,750 for married individuals filing separately). The credit phases out for individual taxpayers with modified adjusted gross income between $75,000 and $95,000 ($150,000-$170,000 for joint filers) for the year of the purchase. A taxpayer is considered a first-time homebuyer if he (or spouse, if married) had no ownership interest in a principal residence during the 3 year period before the purchase of the home to which the credit applies.
Reduced Principal Residence Exclusion for Non-qualified Use Periods - For sales after December 31, 2008, the principal residence exclusion will not apply to the extent gain is allocable to non-qualified use. Non-qualified use includes a period during which the residence is not used as a principal residence by the taxpayer or spouse. In general, the seller will be required to reduce the exclusion amount by a ratio the numerator of which is the period of non-qualified use and the denominator of which is the period the property was owned. Certain periods of non-qualified use are not counted including any period before January 1, 2009, any non-qualified use arising after a period of qualified use, and certain temporary absences. This new rule will further limit the ability of an investor/owner to convert an investment property into a principal residence and qualify for the full Section 121 exclusion.
Government Sponsored Enterprise (GSE) Reform – This provision creates an independent regulator to oversee the GSEs and increases conforming loan limits to the greater of $417,000 or 115% local area median home price (capped at $625,500). The increased loan limits will be applicable to loans originated after December 31, 2008.
Federal Housing Administration (FHA) Reform – Increases permanent FHA loan limits to the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlines processing for FHA condos; reforms the Home Equity Conversion Mortgage (HECM) program and the FHA manufactured housing program. The down payment requirement on FHA loans will go up to 3.5% (from 3%). The effective date is immediate upon enactment, but the new loan limits will be effective on December 31, 2008.
FHA Foreclosure Rescue – Develops a refinance program for homebuyers with problematic subprime loans. Lenders who elect to participate will write down qualified mortgages to 85% 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. This program is effective on October 1, 2008.
Seller-Funded Down Payment Assistance – This codifies an existing FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by non-profits funded by other sources, churches, employers, or family members. This prohibition is effective on October 1, 2008.
Veterans Affairs (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 one year moratorium on the Federal Housing Authority using risk-based pricing. This provision is effective from October 1, 2008 through September 30, 2009.
GSE Stabilization – Authorizes the Treasury to, make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae will not fail.
Mortgage Revenue Bond Authority – Authorizes $10 billion in mortgage revenue bonds to refinance 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 defaulted loans in FHA foreclosure program. In later years, the Trust Fund will be used for the development of affordable housing.
Community Development Block Grant (CDBG) Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
Low Income Housing Tax Credit – Changes 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.
I look forward to helping you sell more real estate.
Sunday, August 03, 2008
Realtors Join in Building Homes for Heroes
Realtors Join in Building Homes for Heroes
by Bob Hunt
There were no dry eyes today at the celebration/ceremony marking the raising of the walls of the first four homes in Habitat for Humanity's "Homes for Heroes and Foundation for Families" neighborhood in San Juan Capistrano. Homes for Heroes is a pilot project for Habitat. Fourteen of the 27 homes to be built on a 2.7 acre site here will be marketed both to combat-disabled veterans and their families and to the surviving families of deceased veterans. It is anticipated that this program will be continued throughout other parts of the country.
Habitat for Humanity is widely known for its philosophy of "providing a hand up, not a handout." Families are selected to purchase Habitat for Humanity homes based upon need, good credit, household income (which must fall between 25 – 80 percent of the area's median income), legal residency in the U.S., ability to make a 1 percent down payment and to repay a long-term mortgage, and a commitment to partner with Habitat. Once a family is selected, they attend classes on home ownership, budgeting, and home maintenance. They work with a "family partner" who provides guidance and support. And, most notably, they donate 500 hours of "sweat equity" either building their own home or helping another family build theirs.
In the case of the San Juan Capistrano project, families of Marines stationed at nearby Camp Pendleton were encouraged to apply. (Currently, the Orange County branch of Habitat is processing over 200 applications and inquiries.) At today's ceremony, seven of the families who will live in the eight homes in Phase One were introduced. Two of them were families of active duty Marines. One Marine, a single dad, could not be there. His duty today was to escort home the body of a fallen comrade.
Today's wall-raising event was preceded by the participation last week of approximately 400 Marines and Sailors from Camp Pendleton. About 100 a day worked for four days building frames, digging trenches, and laying irrigation lines. They worked so hard, so fast, and so efficiently, that they were asked to move on to another project before the four days were up. They had done a projected four day's work in about two. Members of Combat Logistics Regiment 15, most of them are preparing to deploy to Iraq.
The Homes for Heroes project particularly resonated with local Realtors®. Three nearby associations – Orange County Association of Realtors®, Newport Beach Association of Realtors®, and Laguna Board of Realtors® -- committed to raise $250,000, an amount sufficient to build one home.
Their efforts, to put it simply, were just phenomenal. Individual Realtors®, brokerage offices, Women's Council of Realtors®, association staff members, affiliates such as lenders, home warranty reps, and sign companies all pitched in. They held events (one Realtor®, Michael Gosselin of Laguna Beach, even sponsored a "non event" that raised $19,000), they recycled, they auctioned, they sponsored luncheons and drawings, and they wrote checks.
Need I remind anyone that when all this was going on, the market had already turned? Down, that is. The last year and one-half has not been fat times for Orange County Realtors®.
This past month, the Realtor® associations topped their goal of $250,000. Excess funds will be used to help furnish one of the homes for heroes. Having raised the requisite money, today scores of Realtors®, association staff, and affiliates were on site swinging hammers and raising the walls of homes that will introduce deserving, well-chosen families to the American Dream.
Don Readinger, president of the Orange County Association of Realtors®, and himself a Navy veteran, begins his public addresses by stating, "I'm proud to be a Realtor®." Anyone who attended today's ceremony in San Juan Capistrano would have been proud to say that with him.
Copyright © 2008 Realty Times. All Rights Reserved.
Friday, June 20, 2008
Flower Mound Home for Sale !
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