This information appeared in the North Lake Tahoe Bonanza on Friday, November 28, 2008
Sierra Nevada College is joining the community in celebrating the holidays, Incline-style. Along with other community holiday events taking place the first week in December, add to the list one more: SNC’s Inaugural Tree Lighting on Friday, Dec. 5. The family-friendly festivities begin at 4 p.m. in the Patterson Hall area and will feature Incline Village’s very own Santa (parents, bring your cameras for picture-taking — Santa will be visiting for about an hour at 4:30 p.m.), a special “Santa’s Mailbox” for letters, handcrafted ornaments made by SNC’s international students, cookie decorating, a gingerbread house contest among the SNC students, caroling, various craft activities, refreshments and, at 5:30 p.m., lighting of the tree. Santa will be leading the procession over to the tree on a custom mountain bike-moped, courtesy of Dr. Paul Guttman, as part of the “Santa Goes Green” campaign, a Parasol Community Collaboration between the Santa Claus Foundation, Space Science for Schools, and the UNR Cooperative Extension. The tree’s lights are also green (LED), and, thanks to friend of the college Ben Solomon, are powered by a car battery and supplemented by solar panels. This event is free and open to the public. Afterward, families are encouraged to stay for dinner at SNC in Patterson Hall; the all-you-can-eat affair is $8 for adults and $6 for children under age 10 — the best deal in town! For information, please contact Director of Special Events Debi Noonan at (775) 881-7420 or dnoonan@sierranevada.edu.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, November 28, 2008
Wednesday, November 26, 2008
FHA Still Going Strong
Written by: Kenneth R. Harney / Realty Times
The country's top housing official has an urgent message for potential home buyers: You may have heard that the credit markets were "frozen," but FHA has been open for business throughout the credit squeeze, and so are Fannie Mae and Freddie Mac. In fact, FHA's volume has tripled and the agency is now insuring well over a hundred thousand new loans a month.
In an exclusive one-on-one interview with Realty Times, Housing and Urban Development Secretary Steve Preston said that FHA, Fannie and Freddie -- who account for a combined 90 percent plus share of the entire U.S. mortgage market -- "have kept liquidity alive" for home buyers -- and have virtually unlimited funds for new mortgages.
"There is no credit crisis" for individual home buyers who have at least three percent to put down, documentable employment, and at least a moderately good credit record, said Preston.
Business loans and various other types of credit may have been more difficult to obtain in recent weeks, Preston told Realty Times, but thanks to the government's backing of the three biggest sources of mortgages, buyers and refinancers of houses have had no unusual problems.
Preston and HUD are playing key roles in the $700 billion financial system bailout plan now getting underway. Preston is one of just five members of the Financial Stability Oversight Board that oversees the entire effort. HUD's main task in the weeks ahead, he said, will be to either refinance or help work out thousands of delinquent subprime and underwater homes financed by private lenders during the boom years.
The agency's new "Hope for Homeowners" program, which started October 1, allows it to cut the principal debt, monthly payments and interest rates of delinquent loans through refinancings into fixed-rate FHA mortgages.
In the interview, Preston emphasized the importance of a new, $3.9 billion program that has received virtually no attention in the press, but which could have huge positive impacts on neighborhoods and communities struggling with large numbers of foreclosures.
Congress authorized HUD to provide funds and other assistance to local governments to buy, fix up, resell or rent out foreclosed houses that are dragging down local property values.
Known as the Neighborhood Stabilization program, it offers not only roles for local governments to fight housing blight, but also provides opportunities for alert realty agents, rehab contractors, builders and investors to be involved -- profitably -- in the turnaround efforts.
If you're interested, talk to your city or county housing and community development officials for details. Though HUD will be providing the funds, local officials will be calling the shots.
The country's top housing official has an urgent message for potential home buyers: You may have heard that the credit markets were "frozen," but FHA has been open for business throughout the credit squeeze, and so are Fannie Mae and Freddie Mac. In fact, FHA's volume has tripled and the agency is now insuring well over a hundred thousand new loans a month.
In an exclusive one-on-one interview with Realty Times, Housing and Urban Development Secretary Steve Preston said that FHA, Fannie and Freddie -- who account for a combined 90 percent plus share of the entire U.S. mortgage market -- "have kept liquidity alive" for home buyers -- and have virtually unlimited funds for new mortgages.
"There is no credit crisis" for individual home buyers who have at least three percent to put down, documentable employment, and at least a moderately good credit record, said Preston.
Business loans and various other types of credit may have been more difficult to obtain in recent weeks, Preston told Realty Times, but thanks to the government's backing of the three biggest sources of mortgages, buyers and refinancers of houses have had no unusual problems.
Preston and HUD are playing key roles in the $700 billion financial system bailout plan now getting underway. Preston is one of just five members of the Financial Stability Oversight Board that oversees the entire effort. HUD's main task in the weeks ahead, he said, will be to either refinance or help work out thousands of delinquent subprime and underwater homes financed by private lenders during the boom years.
The agency's new "Hope for Homeowners" program, which started October 1, allows it to cut the principal debt, monthly payments and interest rates of delinquent loans through refinancings into fixed-rate FHA mortgages.
In the interview, Preston emphasized the importance of a new, $3.9 billion program that has received virtually no attention in the press, but which could have huge positive impacts on neighborhoods and communities struggling with large numbers of foreclosures.
Congress authorized HUD to provide funds and other assistance to local governments to buy, fix up, resell or rent out foreclosed houses that are dragging down local property values.
Known as the Neighborhood Stabilization program, it offers not only roles for local governments to fight housing blight, but also provides opportunities for alert realty agents, rehab contractors, builders and investors to be involved -- profitably -- in the turnaround efforts.
If you're interested, talk to your city or county housing and community development officials for details. Though HUD will be providing the funds, local officials will be calling the shots.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Tuesday, November 25, 2008
Incline Village Holiday Events in December
Brunch with Santa on December 13th:
Join us at the Chateau for a fun filled brunch with Santa and his elves. There are two different seating times 8:00am – 10:00am and 11:00am – 1:00pm.
This event has pictures with Santa, arts & crafts, a magic show, and yummy food. If you purchase your tickets in advance price is $15/adults and $5/child. At the door tickets will be $20/adults and $10/child. Click here for more information!
Chateau Holiday Ball December 18th:
Celebrate a night of dinner and dancing at The Chateau Holiday Ball on December 18th from 6-11 pm. Enjoy an elegant array of holiday cuisine including chef appointed stations, full cash bar and wine selections by the bottle, music provided by a DJ, and free child care at Aspen Grove with your reservation from 5:30-11:30 pm (space limited). The cost is $65 per person, call (775) 832-1240 to make reservations!
Click here to see the flyer!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Join us at the Chateau for a fun filled brunch with Santa and his elves. There are two different seating times 8:00am – 10:00am and 11:00am – 1:00pm.
This event has pictures with Santa, arts & crafts, a magic show, and yummy food. If you purchase your tickets in advance price is $15/adults and $5/child. At the door tickets will be $20/adults and $10/child. Click here for more information!
Chateau Holiday Ball December 18th:
Celebrate a night of dinner and dancing at The Chateau Holiday Ball on December 18th from 6-11 pm. Enjoy an elegant array of holiday cuisine including chef appointed stations, full cash bar and wine selections by the bottle, music provided by a DJ, and free child care at Aspen Grove with your reservation from 5:30-11:30 pm (space limited). The cost is $65 per person, call (775) 832-1240 to make reservations!
Click here to see the flyer!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Thursday, November 20, 2008
All the "buzz" in Incline Village
Article By: Kevin MacMillan - Bonanza EditorPublished in the North Lake Tahoe Bonanza
What started as a half day meeting of some substance five years ago has spawned into a two-day strategic planning session that could go a long way in determining the face of the district for years to come.
The Incline Village General Improvement District will meet for its annual board retreat, beginning today at 9 a.m. at IVGID’s Administrative Offices at 893 Southwood Blvd. Today’s proceedings will wrap up around 4 p.m., and the retreat will reconvene for an all-day Thursday session.
“With any business or municipality, it is necessary for good operations to look into the future and determine where you want your business or town to go,” said Gene Brockman, IVGID Board vice chairman. “That is what this is meant to do because it’s very difficult to do that sort of talking or planning in our regular bi-monthly meetings.”
The two-day retreat is treated as a normal IVGID board meeting in the sense that the public can attend to observe the board, and it can comment on certain items during regular public comment sections.
However, the thrust of the retreat is for the board to discuss its many agenda items and work toward establishing future goals for the district, Brockman said.
This year’s retreat is the most in-depth ever, with two days devoted to about 20 agenda items, on which action may or may not be taken, according to the agenda, which can be viewed in full at http://www.ivgid.org/.
Brockman said the drive to spend more time on the annual retreat is telling that recent boards are devoted to the district’s future.
“The first one was much shorter and simpler,” Brockman said. “But as the value of this kind of session has become apparent, it has taken on a new life.”
For example, last year’s retreat marked the first time the board assessed business plans for IVGID’s facilities for the coming year, including Diamond Peak Ski Resort, the Mountain and Championship golf courses, the Recreation Center, the beaches and IVGID’s Public Works department.
This year, trustees again will review business plans for the upcoming fiscal year, along with other items of business, including discussion on the next steps for the district’s pending 5-acre Incline Lake purchase; discussion on possible expansion of the district’s recycling program; and discussion about possible advancements with the Town of Incline Village.
What’s on the agenda:
While the full agenda can be viewed at http://www.ivgid.org/, below are some of the items that will be discussed today and Thursday.
Notable agenda times for today:
1. Review changes to the Championship Course business plan.
2. Review changes to Tennis Center business plan.
3. Review The Chateau business plan, specifically catering prices.
4. Review changes of business plans for Public Works, Mountain Course, Parks and Recreation and Ski.
Notable agenda items for Thursday:
1. Capital spending for infrastructure versus operations.
2. Discuss the Recreation Fee allocation table.
3. Discuss defensible space maintenance plan developed by the North Lake Tahoe Fire Protection District for district lands.
4. Discuss the next step for Ordinance 7 — revising, updating or leaving as is.
5. Parcel Splits and the Recreation Roll to include but not limited to parcels, Assessor Parcel Numbers, dwelling units, what properties get charged and which ones don’t get charged, as well as how they apply to the Recreation Roll.
6. Discussion of expansion of the Blue Bag Recycling Program.
7. Discuss next steps for Incline Lake.
8. Town of Incline Village: Changes to Nevada Revised Statute Chapter 269 and appointment of a committee.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Wednesday, November 19, 2008
Real Estate Outlook: Housing in Recovery
Written by: Kenneth R. Harney / Realty Times
With all the turbulence and losses in stocks and bad economic news in the headlines lately, you can easily lose perspective on what's really going on in the real estate sector.
For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.
How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing -- especially from first-time buyers who want to scoop up low-priced deals.
When fixed interest rates drop -- and last week they were down by a quarter of a percentage point -- those buyers start doing the math and getting into the market with offers.
Fixed thirty year rates fell from six and a half percent to 6.24 percent during the week. Fifteen year rates broke below six percent to 5.9 percent, down from 6.14 percent.
Another piece of positive news you may not have noticed: Pending home sales were higher than year-earlier levels for the second straight month -- 1.6 percent higher than September 2007 .
Although pending sales contracts were down slightly for the month, in the western states they were up by 3.7 percent, and now stand at an extraordinary 39.7 percent higher than they were at the same time in 2007.
At the National Association of Realtors' convention in Orlando, chief economist Lawrence Yun, warned the delegates not to expect a housing recovery overnight, certainly not with unemployment on the rise. But he projected a slow, steady, multi-year upward trend, with 5.02 million total sales this year, 5.3 million for 2009, and 5.6 million for 2010.
Already sales are up significantly in major markets in many parts of the U.S. Yun specifically mentioned the west coast of Florida, the Phoenix area, Virginia, Long Island New York, Kansas City, Minnesota and Idaho.
So here's the key point to keep in mind as you try to make sense of the headlines: The stock market is NOT the housing market. It's on a whole different set of tracks. And it's been in a highly volatile state for more than a month.
Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
With all the turbulence and losses in stocks and bad economic news in the headlines lately, you can easily lose perspective on what's really going on in the real estate sector.
For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.
How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing -- especially from first-time buyers who want to scoop up low-priced deals.
When fixed interest rates drop -- and last week they were down by a quarter of a percentage point -- those buyers start doing the math and getting into the market with offers.
Fixed thirty year rates fell from six and a half percent to 6.24 percent during the week. Fifteen year rates broke below six percent to 5.9 percent, down from 6.14 percent.
Another piece of positive news you may not have noticed: Pending home sales were higher than year-earlier levels for the second straight month -- 1.6 percent higher than September 2007 .
Although pending sales contracts were down slightly for the month, in the western states they were up by 3.7 percent, and now stand at an extraordinary 39.7 percent higher than they were at the same time in 2007.
At the National Association of Realtors' convention in Orlando, chief economist Lawrence Yun, warned the delegates not to expect a housing recovery overnight, certainly not with unemployment on the rise. But he projected a slow, steady, multi-year upward trend, with 5.02 million total sales this year, 5.3 million for 2009, and 5.6 million for 2010.
Already sales are up significantly in major markets in many parts of the U.S. Yun specifically mentioned the west coast of Florida, the Phoenix area, Virginia, Long Island New York, Kansas City, Minnesota and Idaho.
So here's the key point to keep in mind as you try to make sense of the headlines: The stock market is NOT the housing market. It's on a whole different set of tracks. And it's been in a highly volatile state for more than a month.
Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, November 17, 2008
Diamond Peak Base Lodge Grand Opening is December 6th!
Join us for the Diamond Peak Base Lodge Grand Opening on December 6th from 3:00-5:00 pm! The Grand Opening features a Kids Art Contest Award Ceremony, a Passport Adventure (get your passport stamped for your chance to win prizes), kids games, live music by Emily Tessmer, appetizers and refreshments, and more! Proceeds from the Loft Bar will be donated to the Diamond Peak Ski Education Foundation and the Pet Network is bringing animals to adopt (weather permitting). It's an event not to miss! To RSVP, click here.
- Ski and stay for as little as $63 per night* (at the Parkside Inn, midweek). The Hyatt Regency Lake Tahoe offers a live Diamond Peak ticket booth, so you can grab your ticket and take our free ski shuttle directly to the slopes! More Diamond Peak Ski & Stay Packages.
- Get a free penguin toy with every Child Ski Center purchase!
- Get a 50% discount on rental equipment when you show your boarding pass with a Reno/Tahoe destination. Restrictions apply.
- Learn to ski or snowboard for only $25 during the NLTRA Learn to Ski & Ride Days December 13th & 14th.
For the first 10 people that answer this question correctly, we'll send a Diamond Peak chapstick, sticker and Sierra Summits sunblock!
How much does it cost for a 5-day Diamond Peak mini-pass?
Email your answer to mediainfo@diamondpeak.com.
How much does it cost for a 5-day Diamond Peak mini-pass?
Email your answer to mediainfo@diamondpeak.com.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Friday, November 14, 2008
Shop locally and save our communities!
The weather outside is frightful, which is all the more reason to shop locally.
As the holidays roll around, we are all tempted to save by shopping the big box stores. But when you patronize local businesses, the money stays in our town and benefits the community. Small businesses are the backbone for local nonprofits. They have given countless in-kind gifts, and generous sums of cash. They support everything from kids’ soccer to environmental awareness. By shopping locally, you help maintain a vibrant area. You are helping to improve our local economy, create local jobs and support the functions that make ours a real community, not just a pretty place to visit.
This year, before you make your pilgrimage over Mount Rose, check out what our local businesses have to offer. It could save you time and gas while revitalizing our town.
Get a tax break
In October, Congress passed a brief extension of the IRA charitable rollover provision. With this extension, donors 70 or older can make tax-free charitable gifts totaling up to $100,000 per year from their IRAs directly to charities. Prior, donors had to report the IRA gifts as ordinary income, taxable at regular rates.
The IRA donation rollover might be a good strategy for individuals who face donation limits based on income. Generally, donors cannot donate an amount that exceeds 50 percent of their adjusted gross income. But when the money goes directly to the charity from their IRA, it doesn’t count against that limit because it’s not included in donors’ gross income. By making a charitable distribution with all or part of their required IRA distribution, donors may reduce income and reduce the percentage of social security subject to taxation.
If this giving technique works for you, and you’re old enough to use it, make plans now. This provision expires at the end of 2009.
Parasol honored
For the second time in a year, the Parasol Tahoe Community Foundation was awarded four stars for sound fiscal management by Charity Navigator, the country’s foremost charity evaluator. Only 18 percent of all the charities rated have received consecutive 4-star evaluations. The designation means that Parasol consistently outperforms most other charities in America for fiscal responsibility, transparency and quantifiable results.
Claire Fortier is the Communications Director for the Parasol Tahoe Community Foundation.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Wednesday, November 12, 2008
News Release from the Federal Housing Finance Agency
FOR IMMEDIATE RELEASE
November 11, 2008
Statement of FHFA Director: James B. Lockhart
Welcome. I am pleased that you are able to be here. I would also like to welcome Brian Montgomery, HUD Assistant Secretary and FHA Commissioner; Neel Kashkari, Interim Assistant Treasury Secretary for Financial Stability; Faith Schwartz, Executive Director of HOPE NOW and Michael Heid, Wells Fargo. As a Navy veteran, I do not like interfering with your Veterans Day, but as you all know there is a battle going on in the housing market.
As housing prices have fallen, delinquencies on mortgages have tripled, not just for subprime and Alt-A, but also for prime mortgages. Foreclosures have increased almost 150% from two years ago. Foreclosures hurt families, their neighbors, whole communities and the overall housing market. We need to stop this downward spiral.
Today we are announcing a major program designed to greatly reduce preventable foreclosures with a simplified, streamlined loan modification program to get struggling homeowners into mortgages that they can afford. It is an achievable goal if homeowners, banks, mortgage servicers, investors, Fannie Mae and Freddie Mac all work together.
As the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBanks), the Federal Housing Finance Agency (FHFA) strongly supports the Enterprises’ leadership role in setting industry standards for assisting "at risk" borrowers who could lose their homes to foreclosure. This streamlined modification program with uniform eligibility requirements will be supported by a consistent, efficient process approved by key industry participants. This program resulted from a unified effort among the Enterprises, Hope Now and its twenty-seven servicer partners, the Department of the Treasury, the Federal Housing Administration (FHA) and FHFA.
In developing this program, we have drawn on the FDIC’s experience and assistance, and have greatly benefited from the FDIC’s input.
Fannie Mae and Freddie Mac own or guarantee almost 31 million mortgages, about 58% of all single family mortgages. Although these mortgages only represent 20% of serious delinquencies, I believe their leadership role combined with the many partners of HOPE NOW should spread this approach throughout the whole mortgage loan servicing business. The performance of private label mortgage backed securities that were sliced and diced and sold to investors is just the opposite of Fannie Mae’s and Freddie Mac’s. Private label securities represent less than 20% of the mortgages but 60% of the serious delinquencies. As the regulator of the housing GSEs that own over a quarter of a trillion dollars of private label securities, I ask the private label MBS servicers and investors to rapidly adopt this program as the industry standard. Not only will this streamlined program assist borrowers, but broad acceptance and effective implementation could stabilize communities and property values.
The program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence, and has not filed for bankruptcy. To be considered for the program, a seriously delinquent borrower should contact his or her servicer and provide the requested income information. The program creates a fast-track method of getting troubled borrowers to an affordable monthly payment where "affordable" is defined as a first mortgage payment, including homeowner association dues, of no more than 38 percent of the household’s monthly gross income. This affordable payment will be achieved through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payment on part of the principal. Servicers will have flexibility in the mix used to get there, but the goal is to create a more affordable payment.
If the servicer is unable to create an affordable payment with this streamlined program, it will further evaluate the borrower’s situation through a customized process. The key to success is the borrower’s ongoing cooperation and communication with the servicer. Borrowers shouldn’t fear working with servicers. They have dedicated personnel who are experienced in working with borrowers who are struggling with finances, but who are eager to keep their homes.
The streamlined modification program complements existing loss mitigation programs. We expect that it could significantly increase the number of modifications completed. Borrowers who participate will be strongly encouraged to seek financial counseling through HUD-approved agencies – particularly, if the default is a result of being overextended or due to financial mismanagement.
Fannie Mae and Freddie Mac will soon issue specific guidance to their servicers implementing this program requiring implementation by December 15th. To encourage participation, servicers will receive a fixed payment of $800 for each loan modified through this program.
Troubled borrowers eligible for this program have already experienced significant erosion in their credit scores, making them unlikely to obtain mortgage credit, through typical means. Many also lack equity in their homes. This streamlined program is meant to reach as many of these borrowers as possible to give them a chance to save their homes and begin restoring their credit. The borrowers’ ultimate obligation to repay his or her current mortgage does not change.
Regrettably, there are many American families in this situation. This unified effort on the part of the Fannie Mae, Freddie Mac, private lenders and servicers, and the Federal agencies represented here is a bold attempt to move quickly in defining a nationwide program that can quickly and easily reach many of these troubled borrowers, thereby stabilizing those families and the communities and neighborhoods in which they live.
Thank you and now I will turn it over to Faith Schwartz.
###
QUESTIONS AND ANSWERS ON THE STREAMLINED MODIFICATION PROGRAM
Q: What is a modification?
A: A modification is a change to the original mortgage terms. It may include a change to the product (an ARM to a fixed rate mortgage), interest rate, amortization term and maturity date, and/or unpaid principal balance. The change/s is made to create a more affordable payment for the borrower.
Q: What is a streamlined modification?
A: A streamlined modification is a modification that requires less documentation and less processing. In this case, the streamlined modification seeks to create a monthly mortgage payment that is sustainable for troubled borrowers by targeting a benchmark ratio of housing payment to monthly gross household income.
Q: What is the benchmark ratio?
A: This is the first time the industry has agreed on an industry standard. The benchmark ratio for calculating the affordable payment is 38 percent of monthly gross household income. Once the affordable payment is determined, there are several steps the servicer can take to create that payment – extending the term, reducing the interest rate, and forbearing interest. In the event that the affordable payment is still beyond the borrower’s means, the borrower’s situation will be reviewed on a case-by-case basis using a cash flow budget.
Q: Who participated in creating the Streamlined Modification Program? Is this identical to the FDIC’s IndyMac protocol?
A: This program resulted from a unified effort among the Enterprises, Hope Now and its twenty-seven servicer partners, Treasury, the Federal Housing Administration (FHA) and FHFA. In addition, we’ve drawn on the FDIC’s experience and assistance from developing the IndyMac streamlined approach and have greatly benefited from the FDIC’s input and example. To accommodate the need for more flexibility among a larger number of servicers, the Streamlined Modification Program does differ from the IndyMac model in a few areas. However, it uses the same fundamental tools to achieve the same affordability target.
Q: How is this different from Citi’s announcement today?
A: This effort compliments efforts of those banks that have mortgage portfolios and can reach out directly to borrowers for loans they own and service. This is a significant announcement in that Fannie Mae, Freddie Mac and FHFA have mutually agreed as major investors to a single streamlined modification program with a common affordability standard. The majority of HOPE NOW banks who own portfolio mortgages will adopt or offer programs as or more aggressive then what’s being announced.
Q: What is the role of HOPE NOW?
A: HOPE NOW has the leading servicers as members. HOPE NOW collaborated with Fannie Mae, Freddie Mac and FHFA on arriving at a standard that is consistent and addresses the capacity challenge for servicers dealing with increased delinquencies. This will take on-going work to implement for servicers. We anticipate this being implemented by December 15th.
Q: Why is there not a foreclosure moratorium?
A: Any borrower who qualifies and responds to the servicer will be given the opportunity to provide the required information for consideration. If necessary, the scheduling of a foreclosure sale will be suspended. A suspension requires that the borrower maintain contact, desires to keep his or her home, has the ability to make the affordable payment offered, and promptly respond to requests for information and signed documents.
Q: Why is it necessary?
A: With the rise in serious delinquencies and increasing number of loans in foreclosure, this program will help borrowers who have missed three or more payments, but want to keep their homes. Because the eligibility requirements and process are streamlined and consistent, the program will allow servicers to reach more borrowers more quickly.
Q: Who is eligible?
A: The highest risk borrower, who has missed three payments or more, owns and occupies the property as a primary residence, and has not filed bankruptcy. The loan is a Freddie Mac, Fannie Mae or portfolio loan with participating investors. To qualify for the streamlined modification, the borrower must certify that he or she experienced a hardship or change in financial circumstances, and did not purposely default to obtain a modification.
Q: Why must the borrower be 90 days delinquent? Why not earlier in the delinquency cycle?
A: This is a streamlined solution targeted to reach the most at risk borrower. For borrowers who do not qualify, other solutions are available. This in no way substitutes for the meaningful efforts by all servicers and investors that are currently in place. The 212,000 workouts reported by HOPE NOW in September are testimony to that fact. We will continue to see those efforts produce meaningful results.
Q: How many people will this help?
A: While difficult to assess, it is clear delinquencies are predicted to continue well into 2009. Foreclosure estimates are significant. Having a streamlined approach will assist many borrowers who default and more quickly. We estimate this will ultimately help thousands of borrowers.
Q: What if a borrower is not eligible but still wants to save his/her home?
A: If the servicer is unable to create an affordable payment with this streamlined program, it will further evaluate the borrower’s situation via the standard process. The standard modification program requires a personal cash-flow budget customized to the borrower’s situation.
Q: How do borrowers apply?
A: To be considered for the program, a seriously delinquent borrower should contact his or her servicer and provide the requested information – monthly gross household income, association dues and fees, and a hardship statement.
Q: How do borrowers complete the modification process?
A: Upon receiving the Modification Agreement from the servicer, the borrower signs it and returns it with the 1st payment at the modified terms along with income verification. Once the borrower makes three payments at the modified terms and the account is current as of day 90 of the modified plan, the modification is complete.
Q: What are the goals of the program?
First, we hope that other industry participants -- portfolio lenders and representatives of private label security investors – readily and rapidly adopt this program as the industry standard. Second, the program could increase the number of modifications significantly. Third, broad acceptance and effective implementation could stabilize communities and property values.
Q: When will servicers start offering this program?
A: We expect that by December 15th, servicers will be positioned to work with eligible borrowers.
Q: Will servicers get more details on this program?
A: Both Fannie Mae and Freddie Mac will be communicating directly with their approved servicers through an announcement, letter or bulletin.
Links:
Hope Now http://www.hopenow.com/
HUD http://www.hud.gov/foreclosure/
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
November 11, 2008
Statement of FHFA Director: James B. Lockhart
Welcome. I am pleased that you are able to be here. I would also like to welcome Brian Montgomery, HUD Assistant Secretary and FHA Commissioner; Neel Kashkari, Interim Assistant Treasury Secretary for Financial Stability; Faith Schwartz, Executive Director of HOPE NOW and Michael Heid, Wells Fargo. As a Navy veteran, I do not like interfering with your Veterans Day, but as you all know there is a battle going on in the housing market.
As housing prices have fallen, delinquencies on mortgages have tripled, not just for subprime and Alt-A, but also for prime mortgages. Foreclosures have increased almost 150% from two years ago. Foreclosures hurt families, their neighbors, whole communities and the overall housing market. We need to stop this downward spiral.
Today we are announcing a major program designed to greatly reduce preventable foreclosures with a simplified, streamlined loan modification program to get struggling homeowners into mortgages that they can afford. It is an achievable goal if homeowners, banks, mortgage servicers, investors, Fannie Mae and Freddie Mac all work together.
As the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBanks), the Federal Housing Finance Agency (FHFA) strongly supports the Enterprises’ leadership role in setting industry standards for assisting "at risk" borrowers who could lose their homes to foreclosure. This streamlined modification program with uniform eligibility requirements will be supported by a consistent, efficient process approved by key industry participants. This program resulted from a unified effort among the Enterprises, Hope Now and its twenty-seven servicer partners, the Department of the Treasury, the Federal Housing Administration (FHA) and FHFA.
In developing this program, we have drawn on the FDIC’s experience and assistance, and have greatly benefited from the FDIC’s input.
Fannie Mae and Freddie Mac own or guarantee almost 31 million mortgages, about 58% of all single family mortgages. Although these mortgages only represent 20% of serious delinquencies, I believe their leadership role combined with the many partners of HOPE NOW should spread this approach throughout the whole mortgage loan servicing business. The performance of private label mortgage backed securities that were sliced and diced and sold to investors is just the opposite of Fannie Mae’s and Freddie Mac’s. Private label securities represent less than 20% of the mortgages but 60% of the serious delinquencies. As the regulator of the housing GSEs that own over a quarter of a trillion dollars of private label securities, I ask the private label MBS servicers and investors to rapidly adopt this program as the industry standard. Not only will this streamlined program assist borrowers, but broad acceptance and effective implementation could stabilize communities and property values.
The program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence, and has not filed for bankruptcy. To be considered for the program, a seriously delinquent borrower should contact his or her servicer and provide the requested income information. The program creates a fast-track method of getting troubled borrowers to an affordable monthly payment where "affordable" is defined as a first mortgage payment, including homeowner association dues, of no more than 38 percent of the household’s monthly gross income. This affordable payment will be achieved through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payment on part of the principal. Servicers will have flexibility in the mix used to get there, but the goal is to create a more affordable payment.
If the servicer is unable to create an affordable payment with this streamlined program, it will further evaluate the borrower’s situation through a customized process. The key to success is the borrower’s ongoing cooperation and communication with the servicer. Borrowers shouldn’t fear working with servicers. They have dedicated personnel who are experienced in working with borrowers who are struggling with finances, but who are eager to keep their homes.
The streamlined modification program complements existing loss mitigation programs. We expect that it could significantly increase the number of modifications completed. Borrowers who participate will be strongly encouraged to seek financial counseling through HUD-approved agencies – particularly, if the default is a result of being overextended or due to financial mismanagement.
Fannie Mae and Freddie Mac will soon issue specific guidance to their servicers implementing this program requiring implementation by December 15th. To encourage participation, servicers will receive a fixed payment of $800 for each loan modified through this program.
Troubled borrowers eligible for this program have already experienced significant erosion in their credit scores, making them unlikely to obtain mortgage credit, through typical means. Many also lack equity in their homes. This streamlined program is meant to reach as many of these borrowers as possible to give them a chance to save their homes and begin restoring their credit. The borrowers’ ultimate obligation to repay his or her current mortgage does not change.
Regrettably, there are many American families in this situation. This unified effort on the part of the Fannie Mae, Freddie Mac, private lenders and servicers, and the Federal agencies represented here is a bold attempt to move quickly in defining a nationwide program that can quickly and easily reach many of these troubled borrowers, thereby stabilizing those families and the communities and neighborhoods in which they live.
Thank you and now I will turn it over to Faith Schwartz.
###
QUESTIONS AND ANSWERS ON THE STREAMLINED MODIFICATION PROGRAM
Q: What is a modification?
A: A modification is a change to the original mortgage terms. It may include a change to the product (an ARM to a fixed rate mortgage), interest rate, amortization term and maturity date, and/or unpaid principal balance. The change/s is made to create a more affordable payment for the borrower.
Q: What is a streamlined modification?
A: A streamlined modification is a modification that requires less documentation and less processing. In this case, the streamlined modification seeks to create a monthly mortgage payment that is sustainable for troubled borrowers by targeting a benchmark ratio of housing payment to monthly gross household income.
Q: What is the benchmark ratio?
A: This is the first time the industry has agreed on an industry standard. The benchmark ratio for calculating the affordable payment is 38 percent of monthly gross household income. Once the affordable payment is determined, there are several steps the servicer can take to create that payment – extending the term, reducing the interest rate, and forbearing interest. In the event that the affordable payment is still beyond the borrower’s means, the borrower’s situation will be reviewed on a case-by-case basis using a cash flow budget.
Q: Who participated in creating the Streamlined Modification Program? Is this identical to the FDIC’s IndyMac protocol?
A: This program resulted from a unified effort among the Enterprises, Hope Now and its twenty-seven servicer partners, Treasury, the Federal Housing Administration (FHA) and FHFA. In addition, we’ve drawn on the FDIC’s experience and assistance from developing the IndyMac streamlined approach and have greatly benefited from the FDIC’s input and example. To accommodate the need for more flexibility among a larger number of servicers, the Streamlined Modification Program does differ from the IndyMac model in a few areas. However, it uses the same fundamental tools to achieve the same affordability target.
Q: How is this different from Citi’s announcement today?
A: This effort compliments efforts of those banks that have mortgage portfolios and can reach out directly to borrowers for loans they own and service. This is a significant announcement in that Fannie Mae, Freddie Mac and FHFA have mutually agreed as major investors to a single streamlined modification program with a common affordability standard. The majority of HOPE NOW banks who own portfolio mortgages will adopt or offer programs as or more aggressive then what’s being announced.
Q: What is the role of HOPE NOW?
A: HOPE NOW has the leading servicers as members. HOPE NOW collaborated with Fannie Mae, Freddie Mac and FHFA on arriving at a standard that is consistent and addresses the capacity challenge for servicers dealing with increased delinquencies. This will take on-going work to implement for servicers. We anticipate this being implemented by December 15th.
Q: Why is there not a foreclosure moratorium?
A: Any borrower who qualifies and responds to the servicer will be given the opportunity to provide the required information for consideration. If necessary, the scheduling of a foreclosure sale will be suspended. A suspension requires that the borrower maintain contact, desires to keep his or her home, has the ability to make the affordable payment offered, and promptly respond to requests for information and signed documents.
Q: Why is it necessary?
A: With the rise in serious delinquencies and increasing number of loans in foreclosure, this program will help borrowers who have missed three or more payments, but want to keep their homes. Because the eligibility requirements and process are streamlined and consistent, the program will allow servicers to reach more borrowers more quickly.
Q: Who is eligible?
A: The highest risk borrower, who has missed three payments or more, owns and occupies the property as a primary residence, and has not filed bankruptcy. The loan is a Freddie Mac, Fannie Mae or portfolio loan with participating investors. To qualify for the streamlined modification, the borrower must certify that he or she experienced a hardship or change in financial circumstances, and did not purposely default to obtain a modification.
Q: Why must the borrower be 90 days delinquent? Why not earlier in the delinquency cycle?
A: This is a streamlined solution targeted to reach the most at risk borrower. For borrowers who do not qualify, other solutions are available. This in no way substitutes for the meaningful efforts by all servicers and investors that are currently in place. The 212,000 workouts reported by HOPE NOW in September are testimony to that fact. We will continue to see those efforts produce meaningful results.
Q: How many people will this help?
A: While difficult to assess, it is clear delinquencies are predicted to continue well into 2009. Foreclosure estimates are significant. Having a streamlined approach will assist many borrowers who default and more quickly. We estimate this will ultimately help thousands of borrowers.
Q: What if a borrower is not eligible but still wants to save his/her home?
A: If the servicer is unable to create an affordable payment with this streamlined program, it will further evaluate the borrower’s situation via the standard process. The standard modification program requires a personal cash-flow budget customized to the borrower’s situation.
Q: How do borrowers apply?
A: To be considered for the program, a seriously delinquent borrower should contact his or her servicer and provide the requested information – monthly gross household income, association dues and fees, and a hardship statement.
Q: How do borrowers complete the modification process?
A: Upon receiving the Modification Agreement from the servicer, the borrower signs it and returns it with the 1st payment at the modified terms along with income verification. Once the borrower makes three payments at the modified terms and the account is current as of day 90 of the modified plan, the modification is complete.
Q: What are the goals of the program?
First, we hope that other industry participants -- portfolio lenders and representatives of private label security investors – readily and rapidly adopt this program as the industry standard. Second, the program could increase the number of modifications significantly. Third, broad acceptance and effective implementation could stabilize communities and property values.
Q: When will servicers start offering this program?
A: We expect that by December 15th, servicers will be positioned to work with eligible borrowers.
Q: Will servicers get more details on this program?
A: Both Fannie Mae and Freddie Mac will be communicating directly with their approved servicers through an announcement, letter or bulletin.
Links:
Hope Now http://www.hopenow.com/
HUD http://www.hud.gov/foreclosure/
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, November 10, 2008
Credit Unions To The Rescue
Written by: Broderick Perkins / Realty Times
Been down to your friendly neighborhood credit union lately?
You could find that elusive home loan you've been unable to get anywhere else.
Credit unions didn't need a bail out during the Great Depression, they didn't need federal intervention during the Savings & Loan debacle and they don't need government assistance now. In fact, right now, they are rolling out the red carpet for home loan borrowers.
During the boom, credit unions avoided writing subprime home loans and other easy-money mortgages. They also shunned selling packages of mortgages to Wall Street moguls who packaged them into now low- to no-return securities. That means credit unions are relatively untainted by the credit squeeze and they have both money to burn and a sound business foundation that allows them to keep on lending.
Instead of fearing the next Great Depression, member-owned credit unions are bracing for what could be their boom time in home loans and other financial services, now that banks and mortgage lenders are crashing and burning.
Mortgage production among credit unions is small by comparison to banks and mortgage lenders, but their originations rose a whopping 10.1 percent during the first half of 2008, according to the industry's federal regulator, the National Credit Union Administration (NCUA).
The Mortgage Bankers Association recently reported bank and mortgage lender loan originations took a nose dive, falling 17 percent during the same period.
Credit unions are more willing than many lenders to make homes loans for the creditworthy, but the old fashioned way. If you go shopping for a credit union mortgage, leave your subprime attitude at the door. You won't be coddled, you can't get away with lying on your application, your creditworthiness will have to pass muster and you likely won't get more home than you can truly afford.
Credit unions are non-profits in the business to make money, but not profits. They serve members who pool their money to get a decent return, either in the form of savings interest or competitively priced loans.
The fundamentals apply: Credit unions take in deposits. They use the money to make loans. They charge more on those loans than they pay on deposits. Voila! A thriving business.
It's the lack of the profit motive that kept credit unions out of harms way during the mortgage meltdown. They have no incentive to get involved in the subprime racket, no reason to sell and repackage loans as investments and no need to otherwise venture into untried and untrue investment schemes.
Credit unions hold most loans to maturity and return the interest to members in the form of interest-bearing checking, savings and CD accounts. The rest they invest smart so they can continue to help members. Also, because credit unions didn't hop aboard the home loan assembly line, their members aren't suffering the kind of housing hangover many home owners face today.
Less than 1 percent of all credit union mortgages are 60 days or more late, according to their Credit Union National Association (CUNA). And, along with fixed-rate 30-year mortgages they also offer conventional adjustable rate mortgages (ARM) and hybrids.
As with other financial products -- savings and CDs -- rates on loans are often better at credit unions. The spread isn't as much with mortgages as it is with credit cards and car loans, but credit unions' mortgage rates are competitive.
As of October 15 UNA reported the average rate on a 30-year fixed rate mortgage was 6.27 percent; for a 1-year ARM, 4.91 percent. Meanwhile, the MBA reported an average 6.47 percent for a 30-year loan and an average 6.67 for a 1-year ARM.
"Credit unions are the safest depository institution in the country to put your money in right now," says Dan Mica, President and CEO of CUNA.
He has room to boast. Just as the Federal Deposit Insurance Corporation (FDIC) insures accounts up to $250,000 in federally insured banks, credit unions are likewise regulated and federally insured by the NCUA for the same amount.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Been down to your friendly neighborhood credit union lately?
You could find that elusive home loan you've been unable to get anywhere else.
Credit unions didn't need a bail out during the Great Depression, they didn't need federal intervention during the Savings & Loan debacle and they don't need government assistance now. In fact, right now, they are rolling out the red carpet for home loan borrowers.
During the boom, credit unions avoided writing subprime home loans and other easy-money mortgages. They also shunned selling packages of mortgages to Wall Street moguls who packaged them into now low- to no-return securities. That means credit unions are relatively untainted by the credit squeeze and they have both money to burn and a sound business foundation that allows them to keep on lending.
Instead of fearing the next Great Depression, member-owned credit unions are bracing for what could be their boom time in home loans and other financial services, now that banks and mortgage lenders are crashing and burning.
Mortgage production among credit unions is small by comparison to banks and mortgage lenders, but their originations rose a whopping 10.1 percent during the first half of 2008, according to the industry's federal regulator, the National Credit Union Administration (NCUA).
The Mortgage Bankers Association recently reported bank and mortgage lender loan originations took a nose dive, falling 17 percent during the same period.
Credit unions are more willing than many lenders to make homes loans for the creditworthy, but the old fashioned way. If you go shopping for a credit union mortgage, leave your subprime attitude at the door. You won't be coddled, you can't get away with lying on your application, your creditworthiness will have to pass muster and you likely won't get more home than you can truly afford.
Credit unions are non-profits in the business to make money, but not profits. They serve members who pool their money to get a decent return, either in the form of savings interest or competitively priced loans.
The fundamentals apply: Credit unions take in deposits. They use the money to make loans. They charge more on those loans than they pay on deposits. Voila! A thriving business.
It's the lack of the profit motive that kept credit unions out of harms way during the mortgage meltdown. They have no incentive to get involved in the subprime racket, no reason to sell and repackage loans as investments and no need to otherwise venture into untried and untrue investment schemes.
Credit unions hold most loans to maturity and return the interest to members in the form of interest-bearing checking, savings and CD accounts. The rest they invest smart so they can continue to help members. Also, because credit unions didn't hop aboard the home loan assembly line, their members aren't suffering the kind of housing hangover many home owners face today.
Less than 1 percent of all credit union mortgages are 60 days or more late, according to their Credit Union National Association (CUNA). And, along with fixed-rate 30-year mortgages they also offer conventional adjustable rate mortgages (ARM) and hybrids.
As with other financial products -- savings and CDs -- rates on loans are often better at credit unions. The spread isn't as much with mortgages as it is with credit cards and car loans, but credit unions' mortgage rates are competitive.
As of October 15 UNA reported the average rate on a 30-year fixed rate mortgage was 6.27 percent; for a 1-year ARM, 4.91 percent. Meanwhile, the MBA reported an average 6.47 percent for a 30-year loan and an average 6.67 for a 1-year ARM.
"Credit unions are the safest depository institution in the country to put your money in right now," says Dan Mica, President and CEO of CUNA.
He has room to boast. Just as the Federal Deposit Insurance Corporation (FDIC) insures accounts up to $250,000 in federally insured banks, credit unions are likewise regulated and federally insured by the NCUA for the same amount.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, November 7, 2008
Obama Victory: What It Means for Real Estate
With the election of Sen. Barack Obama (D-Ill.) as president of the United States, and gains by Democrats in U.S. House and Senate races, one big questions is on many REALTORS®' minds: How will the new government leadership affect the housing industry's ability to move forward with its top legislative goals?
“We’re in a good place,” says 2009 NAR President Charles McMillan. “REALTORS® are excited by this historic election and stand ready to work with our new president and the new Congress on issues that are at the heart of the American dream of homeownership.”
The availability of affordable mortgage financing and affordable health insurance top REALTORS®’ legislative priority list; more important, those issues are also priorities for both major parties.
“There is no partisan divide when it comes to homeownership, strong communities, affordable health insurance, and strong commercial real estate markets,” McMillan says.
Bipartisan Election Support
NAR provided election support through the REALTORS® Political Action Committee (RPAC) to more than 400 candidates, with just slightly more than half of its funds going to Democrats. The small difference in support reflects the larger number of Democrats in the outgoing 110th Congress. “Ours is the most bipartisan PAC in the country,” says RPAC Chair Larry Edwards.
The PAC provided more than $4 million directly to candidates in the general election. Another several million dollars went toward helping about 74 candidates through the NAR Opportunity Race program and a half dozen candidates through the association’s Independent Expenditure program. All told, NAR was expected to spend up to $16 million total in the two-year cycle that ended with the Nov. 4 elections.
In an Opportunity Race, NAR sends educational and get-out-the vote materials in support of an RPAC-backed candidate in the candidate’s district. Independent Expenditures are aimed at the general public and fund radio, TV, and direct mail ads to explain issues of concern to the real estate industry.
REALTOR® Victories in Congress
Rep. Shelley Moore Capito (R-W.Va.). A member of the House Financial Services Committee, Capito was one of REALTORS®’ big winners, overcoming a stiff challenge to win a fifth term. Capito has been a strong advocate for NAR-backed small business health insurance coverage and helped pass FHA reform, the first-time homebuyer tax credit, and expansion of homeownership opportunities for U.S. veterans.
Jerry McNerney (D-Calif.). This freshman lawmaker who played a key role in Congress to increase conforming loan limits, eked out a narrow victory in a fiercely contested race. “Rep. McNerney made his mark quickly as a strong advocate for FHA reform, the home buyer tax credit, and expanded homeownership opportunities for veterans,” says NAR Chief Lobbyist Jerry Giovaniello.
Rep. Paul Kanjorski (D-Pa.). Kanjorski, who authored legislation to keep banks out of real estate, surprised pundits and pollsters, beating out Republican challenger Lou Barletta, the mayor of Hazleton, Pa. “Rep. Kanjorski has been a courageous leader on our behalf,” says NAR’s McMillan. “We’re proud of our support for him.”
Not all of NAR’s efforts to help REALTOR®-friendly lawmakers succeeded. Rep. Chris Shays (R-Conn.), a veteran lawmaker on the pivotal House Financial Services Committee, lost a hard-fought campaign. Shays helped pass housing stimulus legislation this year and has been a steady supporter of NAR-backed legislation to keep banks out of real estate.
Shays was defeated by Democrat Jim Himes, a former Goldman Sachs vice president who went on to become an executive with Enterprise Community Partners, a leader in affordable housing and community development.
Expect Renewed Focus on Fannie,Freddie
NAR analysts say REALTORS® can expect the Obama Administration and the new Congress to focus first and foremost on regulatory reform of the country’s financial services industry.
Lawmakers will be looking at what went wrong and what needs to change to ensure proper regulation of mortgage- and other asset-backed securities.
A large part of this review will focus on potential changes to secondary mortgage market companies Fannie Mae and Freddie Mac, which are under government conservatorship. Among the options on the table: folding them entirely into the government, making them 100-percent privatized companies, or keeping them as public-private hybrids.
NAR has formed a presidential advisory group (PAG) on the future of Fannie and Freddie, and the association will be weighing in as Congress takes on the issue, NAR analysts say.
Another Stimulus Package in the Works?
Obama and Congress will also likely look at another economic stimulus package, particularly if the outgoing 110th Congress balks at passing new stimulus provisions before the end of 2008.
NAR is pushing for a lame-duck session of Congress to make conforming high-cost loan limits of $729,750 permanent and to eliminate the repayment requirement in the first-time homebuyer tax credit.
NAR also want to see heightened consumer protection with a permanent ban on national banks entering real estate brokerage and management. And it wants to ensure Wall Street banks use some of the $700 billion in rescue funds to make mortgage financing available at reasonable costs.
Health-Insurance Reform on the Way
Looking ahead, Congress is expected to take on comprehensive reform of health insurance, infrastructure investment, and climate change—all issues impacting real estate and the real estate profession. On all of those issues, NAR will move aggressively to help shape the debate.
“We see much opportunity as well as challenge in this new environment,” says McMillan. “But thanks to the success of RPAC and the attraction of our issues in both parties, we are well positioned to ensure the best environment for real estate.”
—Robert Freedman
Wednesday, November 5, 2008
Good News for Qualified Buyers
Written by: Phoebe Chongchua / Realty Times
A recent survey released by Trulia, a real estate search engine, community forum center, and reporter of market trends and data, found that a "crisis of confidence" exists among key groups of U.S. homebuyers.
Not surprisingly, much of the lack of confidence in the real estate market stems from the mortgage fallout, the instability of the real estate market, uncertainty of economic times, and the upcoming election.
According to the survey, which included about 1,500 respondents, 70 percent of non-homeowners have no plans to purchase a home in the next 12 months and nearly half in the 18 to 34 age group say the reason is because it's too costly. While those in the 35 to 44 age group are concerned that they might not be able to qualify for a home loan. The survey also found that only 12 percent of the non-homeowner respondents said they expect to buy a home in the next 12 months.
In a press statement, Pete Flint, CEO of Trulia said, "This combination of the mortgage and Wall Street crisis is tantamount to a one-two punch that has knocked the wind out of the American home buying public. The question is how quickly the American psyche will heal. Despite this short term pain, half of all Americans believe that home ownership is still the cornerstone of the American dream. It is the dream of homeownership that—in the end—may help the market rebound."
If you're a prospective buyer, who sees now as an opportune time to buy, then having fewer buyers to compete with puts you in a very good market position. Remember the days of bidding wars?
If you're interested in purchasing a home now, especially because of fewer buyers in the market, this may be the ideal time. Working with experts in the industry to help you qualify for the best-suited loan, appropriate size house and style, in a neighborhood that shows promise of increasing value over time - may allow you to get into the perfect property.
"There are some amazing opportunities out there right now and if you are in a good financial position and you can get the loan that you need—with the banks just getting the infusion of cash this week which will hopefully be used to free up the credit market a little bit—now is a great time," says Ken Shuman, head of communications for Trulia.
He points out that the fourth quarter is traditionally a slow time for buying homes but it can be a good time for serious buyers to get a head start. Shuman says getting pre-approved is critical even if you have done it in the past.
"Even if you are making the same amount of money and for instance last year you qualified for a mortgage of $600,000, this year you might only qualify for a mortgage of $500,000—even if your salary hasn't changed and your credit score hasn't changed," says Shuman.
Shuman also points out that even in these difficult times, the effort to get into the housing market is worth it and that's supported by the research found in their survey.
The survey found that half of the homeowner respondents believe that their home is a great long-term investment despite the turbulence in the marketplace. Some, of course, still have anxiety over the current conditions. The survey also revealed that more than half of all non-homeowners believe homeownership is a central point in achieving their own personal "American Dream".
Among prospective homebuyers the key areas of concern that influence them when deciding to purchase a home are: getting a good price (35%); crime rates (15%), making a good investment (15%).
According to the survey, featured amenities ranked higher than the quality of local school systems (14% versus 11%). Traffic commute ranked last (8%). A gender difference occurs as well. The survey found that, "Men are more concerned with the crime and sound investment factors, whereas women are more concerned with amenities and quality of schools."
As the adage goes, behind every cloud is a silver lining; so, if you're a serious buyer, this may be the market you've been waiting for.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
A recent survey released by Trulia, a real estate search engine, community forum center, and reporter of market trends and data, found that a "crisis of confidence" exists among key groups of U.S. homebuyers.
Not surprisingly, much of the lack of confidence in the real estate market stems from the mortgage fallout, the instability of the real estate market, uncertainty of economic times, and the upcoming election.
According to the survey, which included about 1,500 respondents, 70 percent of non-homeowners have no plans to purchase a home in the next 12 months and nearly half in the 18 to 34 age group say the reason is because it's too costly. While those in the 35 to 44 age group are concerned that they might not be able to qualify for a home loan. The survey also found that only 12 percent of the non-homeowner respondents said they expect to buy a home in the next 12 months.
In a press statement, Pete Flint, CEO of Trulia said, "This combination of the mortgage and Wall Street crisis is tantamount to a one-two punch that has knocked the wind out of the American home buying public. The question is how quickly the American psyche will heal. Despite this short term pain, half of all Americans believe that home ownership is still the cornerstone of the American dream. It is the dream of homeownership that—in the end—may help the market rebound."
If you're a prospective buyer, who sees now as an opportune time to buy, then having fewer buyers to compete with puts you in a very good market position. Remember the days of bidding wars?
If you're interested in purchasing a home now, especially because of fewer buyers in the market, this may be the ideal time. Working with experts in the industry to help you qualify for the best-suited loan, appropriate size house and style, in a neighborhood that shows promise of increasing value over time - may allow you to get into the perfect property.
"There are some amazing opportunities out there right now and if you are in a good financial position and you can get the loan that you need—with the banks just getting the infusion of cash this week which will hopefully be used to free up the credit market a little bit—now is a great time," says Ken Shuman, head of communications for Trulia.
He points out that the fourth quarter is traditionally a slow time for buying homes but it can be a good time for serious buyers to get a head start. Shuman says getting pre-approved is critical even if you have done it in the past.
"Even if you are making the same amount of money and for instance last year you qualified for a mortgage of $600,000, this year you might only qualify for a mortgage of $500,000—even if your salary hasn't changed and your credit score hasn't changed," says Shuman.
Shuman also points out that even in these difficult times, the effort to get into the housing market is worth it and that's supported by the research found in their survey.
The survey found that half of the homeowner respondents believe that their home is a great long-term investment despite the turbulence in the marketplace. Some, of course, still have anxiety over the current conditions. The survey also revealed that more than half of all non-homeowners believe homeownership is a central point in achieving their own personal "American Dream".
Among prospective homebuyers the key areas of concern that influence them when deciding to purchase a home are: getting a good price (35%); crime rates (15%), making a good investment (15%).
According to the survey, featured amenities ranked higher than the quality of local school systems (14% versus 11%). Traffic commute ranked last (8%). A gender difference occurs as well. The survey found that, "Men are more concerned with the crime and sound investment factors, whereas women are more concerned with amenities and quality of schools."
As the adage goes, behind every cloud is a silver lining; so, if you're a serious buyer, this may be the market you've been waiting for.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, November 3, 2008
Coldwell Banker in Incline to Merge
Written by: Nick Cruit
This article appeared in the North Lake Tahoe Bonanza on Friday, October 31, 2008
California-based company to join it with Century 21:
The sale of Coldwell Banker Incline Village Realty to California-based Select Group Real Estate Services was announced to agents Wednesday morning.
Century 21 Mountain Properties of Incline Village and Reno, Century 21 Tahoe Pines Realty, and Century 21 Goldcrest Properties are merging into the newly expanded Coldwell Banker organization to form Coldwell Banker Select Real Estate and Coldwell Banker Incline Village Realty.
With the addition of Coldwell’s approximate 185 agents and employees, the two new companies will have over 700 agents and employees covering Northern California and Northern Nevada.
“The newly expanded Coldwell Banker company is gaining the support and tools of the larger Select Group in order to better serve clients and agents in Northern Nevada,” said Daniel Jacuzzi, President of the two new firms.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
This article appeared in the North Lake Tahoe Bonanza on Friday, October 31, 2008
California-based company to join it with Century 21:
The sale of Coldwell Banker Incline Village Realty to California-based Select Group Real Estate Services was announced to agents Wednesday morning.
Century 21 Mountain Properties of Incline Village and Reno, Century 21 Tahoe Pines Realty, and Century 21 Goldcrest Properties are merging into the newly expanded Coldwell Banker organization to form Coldwell Banker Select Real Estate and Coldwell Banker Incline Village Realty.
With the addition of Coldwell’s approximate 185 agents and employees, the two new companies will have over 700 agents and employees covering Northern California and Northern Nevada.
“The newly expanded Coldwell Banker company is gaining the support and tools of the larger Select Group in order to better serve clients and agents in Northern Nevada,” said Daniel Jacuzzi, President of the two new firms.
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