Posted by admin on Nov 14, 2008 in
Finances,
Mortgages The U.S. Department of Housing and Urban Development (HUD) issued long-anticipated mortgage reforms on November 12, 2008, that will help consumers to shop for the lowest cost mortgage and to avoid costly and possibly harmful loan offers from mortgage lenders. HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Although, NJ has had this requirement , it is the first time ever at the federal level. The reforms were announced in response to comments received on the Real Estate Settlement Procedures Act (RESPA) regulations that were released in March. You can read the final RESPA rule and any other reforms on HUD’s website.
Tags: consumers, HUD, mortgage loans, mortgage market, mortgage reforms, mortgages, real estate consumers, reforms
Posted by admin on Oct 31, 2008 in
Announcements,
Buying,
Finances,
Misce4llaneous 
The $7,500 home ownership tax credit that the federal government created earlier this year as part of the Housing and Economic Recovery Act (H.R. 3221) is another tool at your disposal to encourage potential buyers to jump off the fence and get into the real estate market.
When you combine the tax credit with today’s low interest rates, wide selection of for-sale inventory, and affordable home prices, many of the pieces are in place for your customers to buy now. But tax credits can be confusing.
Here are 6 things you should know about the tax credit:
- Buyers have until July 2009 to make a purchase that qualifies.
The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009 you can take the credit on your 2009 tax return. You can take the credit on your 2008 tax return if you bought your house this year after April 9.
- Buyers don’t really have to be “first-timers.”
The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years. And the NATIONAL ASSOCIATION OF REALTORS® has asked Congress to expand the credit to all buyers, not just those who haven’t owned a primary residence in recent years.
- Even if buyers exceed the income limit, they can benefit from the credit.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500. Sounds like a great deal. But what if you make more money than the income limit of $75,000 for individuals and $150,000 for households? Good news: Individuals whose income exceeds the $75,000 limit but don’t make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000. By the way, any house is eligible as long as it’s a primary residence and is in the United States.
- Think of it as an interest-free loan.
The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable. NAR is pushing congress to remove the repayment provision, making this tax credit a true tax credit rather than an interest-free loan.
- You don’t have to be authorized before making a home purchase.
There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.
- New-home construction qualifies.
For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home. However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.
NAR Asking Congress to Expand Credit
As mentioned above, NAR has asked Congress to do away with the repayment provision of the first-time buyer tax credit and expand the credit to all home buyers, not just first-timers. The proposals were part of a four-point housing stimulus plan the association submitted in mid-October.
“Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord. “It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.
Tags: buyers, Finances, first time buyers, first time home buyers, homes sales, tax credit
Foreclosure filings-default notices, auction sale notices and bank repossessions-were reported on 265,968 properties in September, a 12 percent decrease from the previous month but still a 21 percent increase from September 2007, according to RealtyTrac. One in every 475 U.S. housing units received a foreclosure filing in September. As distressing as this sounds, New Jersey is still more sound in terms of the housing market then other states.
Foreclosure filings were reported on 765,558 U.S. properties during the third quarter, up more than 3 percent from the second quarter and up 71 percent from the third quarter of 2007. “Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,” said James J. Saccacio, chief executive officer of RealtyTrac. “Most significantly, SB 1137 in California took effect in early September and requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD). This will cause more delays in foreclosure filings and skew some of the numbers for that month.
In September we saw California NODs drop 51 percent from the previous month, and that drop had a significant impact on the national numbers given that California accounts for close to one-third of the nation’s foreclosure activity each month. Another example is North Carolina, where legislation was signed into law in August that requires lenders to provide homeowners and the state’s commissioner of banks a 45-day notice prior to filing a Notice of Default. We saw NODs drop 66 percent in North Carolina in September.
“On the other hand, initial foreclosure filings in Massachusetts jumped 465 percent from August to September after being much lower than normal in June, July and August. That temporary lull happened after a new law took effect in May requiring lenders to give homeowners a 90-day right to cure notice before initiating foreclosure. But in September, about 90 days after the law took effect, initial foreclosure notices jumped back up close to the level we were seeing earlier in the year.”
Nevada, Florida and California continue to post the top state foreclosure rates. New Jersey doesn’t make the list. As much as the current news about foreclosures seems to smack of doom and gloom for the housing market, in New Jersey the housing market is still quite stable and has lower number of foreclosures. This not to say that there are no foreclosures in the state, but those foreclosures do not have as much of an impact on the market here then in other states.
Are there the so-called “bargains” to be had in this state? Possibly. But not as much as in Nevada, California, or Arizona. Even with the housing market trending with the national trend of declining markets, New Jersey and many of the state in the Northeast are having the least amount of decline in the market prices. As posted on here before, Pending Sales are much better in our area then in other areas of the country and home prices are beginning to stablize.
So, all of this information is fine and dandy, but if you’re one of the distressed owners in Southern NJ, what do you do? We know you don’t want to have your home foreclosed. You do have other options, but to be able to better understand them and to better determine which ones would be to your best interest, a Foreclosure Prevention Consultant would need to discuss your situation with you in detail and review each option with you.
If you are looking to avoid foreclosure, please contact us directly.
Terry Iwaniw
Foreclosure Prevention Consultant
REALTOR Associate
RE/MAX Home Team
609-417-1086
Tags: buyers, homes for sale, housing market
Posted by admin on Oct 20, 2008 in
Finances,
Misce4llaneous,
Mortgages Housing and Urban Development Secretary Steve Preston has a message for prospective 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, the country’s top housing official said that FHA, Fannie and Freddie (who have accounted for a combined 90 percent plus share of the whole U.S. mortgage market) have kept liquidity alive for home buyers and have virtually unlimited funds for new mortgages.
The fact of the matter is that there is no credit crisis for home buyers that have at least 3 percent to put down, have documentable employment, and at least a moderately good credit record. Business loans and various other types of credit may have been more difficult to obtain in recent weeks but, according to Preston, thanks to the government’s backing of the three biggest sources of mortgages tthe buyers and refinancers of homes have had no unusual problems.
HUD is playing a key role in the $700 billion financial system bailout plan now getting underway. Steve Preston is one of just five members of the Financial Stability Oversight Board that oversees the entire effort and 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.
HUD’s new “Hope for Homeowners” program, which started October 1, will allow it to cut the principal debt, monthly payments and interest rates of delinquent loans through refinancings into fixed-rate FHA mortgages. During an interview, Steve Preston emphasized the importance of a new, $3.9 billion program that has received virtually no attention in the press. This program could have huge positive impacts on neighborhoods and communities struggling with large numbers of foreclosures.
Congress has authorized HUD to provide funds and other assistance to local governments in order to buy, resell, rent out, or fix up foreclosed houses that are bringing 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, contact your local city or county housing and community development officials for more details. Even though HUD will be providing the funds, your local officials will be calling the shots and making the decisions.
So, with all of this said, why do mortgage rates seem kind of high?
One answer is that in order to fund the rescue and the new government guarantees, the Treasury Department must sell more new Treasury securities in order to raise more money. In order to attract buyers for these securities the Treasury has to offer higher interest rates to sell them.
Now, on top of that, mortgage related bonds always trade at a slightly higher yield due to the prepayment and delinquency risk. And lastly, the cost of financing mortgages has increased for Freddie Mac and Fannie Mae due to the plan for the FDIC to back the newly issued, unsecured debt of some banks. This obviously makes that debt more attractive for investors by having the government guarantee the bank debt and consequently creating more competition for Fannie Mae and Freddie Mac when they sell their own securities. So, in order to compete for those security buyers, these mortgage giants will have to raise their own yields on their securities, and to pay for that they’ll have to charge borrowers higher interest.
The Federal Housing Finance Agency (FHFA) expects to announce 2009 conforming loan limits for Fannie Mae and Freddie Mac by November 7. The limits define the maximum loan size of mortgages that can be purchased by these entities. To determine high-cost area limits under HERA for 2009, FHFA will use median home values estimated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). The FHA median prices will be calculated in the coming weeks by FHA for the purpose of determining its 2009 loan limits.
Watch here for updates to this issue and others pertaining any changes.
Tags: buyers, Finances, financing, home financing, home mortgages, mortgages
Posted by admin on Oct 13, 2008 in
Finances,
Housing,
Marketplace,
Mortgages Veterans across America now have expanded homeownership opportunities due to the Veterans’ Benefits Improvement Act of 2008, which President George W. Bush signed into law last Friday. The bill includes housing provisions for veterans who are already home owners and those who aspire to homeownership, according to the NATIONAL ASSOCIATION OF REALTORS®.
“This [bill] will go a long way toward helping veterans buy and keep their homes,” says NAR President Dick Gaylord.
Three provisions in the legislation are critical to help veterans during the current housing turmoil.
1. The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into safer, more affordable loans backed by the U.S Department of Veterans Affairs.
2. The legislation also makes the VA loan limit increases permanent, which will help veterans living in high-cost areas.
3. The VA also can now offer adjustable-rate mortgages to veterans. That would make homeownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.
“We need to support and protect those who serve our country,” Gaylord says. “Helping ensure that every veteran who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it is part of that commitment.”
If you want to learn more or need help with your real estate needs, please feel free to contact us.
Tags: Housing, VA, VA housing, VA loans, veterans
Posted by terryriw on Oct 9, 2008 in
Buying,
Finances,
Marketplace According to the most recent information from Trulia home buyers are staying on the fense when it comes to buying a home. Market uncertainty is scaring away people who don’t own a home, particularly those who are in the 18-34 age group previously most likely to buy, says online real estate service Trulia.
More than 70 percent of non-homeowners surveyed say they have no plans to purchase a home in the next year. But the good news is 12 percent of non-homeowners say they expect to buy a home in the next 12 months.
Non-homeowners with an annual household income of $50,000 to $75,000 agreed more strongly (78 percent) on a home being central to achieving their personal American Dream than those with an annual household income of under $49,000 or over $75,000 (51 percent and 53 percent, respectively).
But first time home buyers should NOT wait too long. Now is a great time to go out an buy your first home. Why? Because many buyers think that there is an actual buying season and that our current one is over for this year. This is just not true. What this does is keep your competition for that house away. Your competition just quit looking and buying. This leaves you an open field. Another reason is the tax credit that first time home buyers get when they purchase their first home. The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. As a first time home buyer, you can take the credit on your 2008 tax return if you buy your house this year after April 9. It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009 you can take the credit on their 2009 tax return. But don’t wait too long…settlement MUST take place prior to July 1, 2009.
But remember, the actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so you can get 10 percent of the home price credited against your tax liability, up to a maximum $7,500. Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.
Any house is eligible as long as it’s a primary residence and is in the United States.
To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.
There’s one restriction on the type of financing that you can use if you plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if you are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.
If you have any questions, please check our First Time Home Buyer’s Knowledge Base. You can also access the First-time home buyer tax credit chart.
Terry Iwaniw
REALTOR Associate
First Time Home Buyer Specialist
Foreclosure Prevention Consultant
RE/MAX Home Team
609-417-1086
http://www.terryi.com/
http://www.snewjerseyhomes.com/
Tags: buying a home, home inventories, housing market, real estate market
Posted by admin on Oct 8, 2008 in
Announcements,
Finances The Federal Reserve along with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank slashed interest rates Wednesday to prevent the financial crisis from becoming a global economic meltdown. The Fed reduced its key rate from 2 percent to 1.5 percent. In Europe, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent. Treasury Secretary Henry Paulson said Wednesday that global financial markets remain severely strained, underscoring the need for quick action to implement the government’s $700 billion rescue program. The cut in the Fed interest rate will help borrowers who have adjustable rate loans that are tied to the prime interest rate.
Tags: Finances, financial markets, interest rates, meltdown, mortgages
Posted by terryriw on Oct 7, 2008 in
Finances,
Mortgages The FLEX/FIXED program is a temporary buy down that provides a qualified borrower with a lower start rate AND the security of a fixed-payment schedule. In the month of October applicants locking into a government loan (FHA or VA) will receive a FREE 1% buy down for the first year of the mortgage.
For example, if the current rate is 6.25% they would pay based on a 5.25% rate for the first 12 payments. Someone purchasing a $200,000.00 home, putting 3% down would save $123/month for the first year!! After the first year, the payment would be recalculated and locked at the 6.25%.
If you want to learn more, contact me.
Terry Iwaniw
REALTOR Associate
First Time Home Buyer Specialist
Foreclosure Prevention Consultant
RE/MAX Home Team
609-417-1086
http://www.terryi.com/
http://www.snewjerseyhomes.com/
Tags: buy down, buyers, Finances, financing, mortgage
Posted by admin on Oct 3, 2008 in
Finances,
Foreclosures,
Housing,
Mortgages Struggling families facing foreclosure will find one more avenue to take-mortgage assistance through a program called HOPE for Homeowners program, which will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD’s Federal Housing Administration (FHA).
The HOPE for Homeowners program begins today and ends September 30, 2011. The program is available only to owner occupants and will offer 30-year fixed rate mortgages, so the borrower’s last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.
If you are interested finding out more or in attending a planned seminar on this new program, call Linda at 609-417-1084 for details.
Tags: financing, foreclosure, HOPE for Homeowners, mortgage
Posted by admin on Sep 28, 2008 in
Finances,
Mortgages The Federal Bureau of Investigation (FBI) is investigating mortgage finance giants Fannie Mae and Freddie Mac for possible corporate fraud. Officials also confirmed that Lehman Brothers and insurer American International Group are under investigation as well. The financial downfall of all four of these institutions are seen as the major trigger of recent economical turmoil and the subsequent $700 billion bailout plan currently being pushed by the Bush administration. Earlier this summer, federal prosecutors charged two portfolio managers of the now defunct Bear Stearns with conspiracy and securities fraud, following an FBI investigation into the company’s business practices.
The FBI said that in addition to the 26 major corporate cases, there were open investigations into about 1,400 smaller companies and individuals whom the agency suspects of mortgage fraud.
Tags: Fannie Mae, fraud, Freddie Mac, mortgages
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