Mortgage Blog by Racheli

November 1st, 2009, brought with it good news for consumers who want to modify their mortgages without lowering their credit scores. It was the first day that a new way of reporting a loan modification to the credit bureaus became available to mortgage lenders.

From this point forward, mortgage lenders can report a loan modification as “Loan Modified Under Federal Government Plan.” This new way to report a loan modification does not have any negative impact to a consumer’s FICO credit scores.

Keep in mind, however, that this new credit reporting guideline only applies if the consumer seeks a loan modification under the Making Home Affordable plan. If you choose a loan modification program that is not a government plan, you run that chance of ending up with lower credit scores because of the very damaging “partial payment plan” reporting guidelines. A partial payment plan statement on your credit report is considered seriously negative and can do significant damage to your credit.??

The news isn’t all good, however. The only reason the new reporting guidelines do not damage your credit scores is because FICO, the company that created the FICO credit score, has not had a chance to include the new status in their credit score development processes. If, over time, they determine that people who have this "Loan Modified Under Federal Government Plan" status on their credit reports are an elevated credit risk, they can choose to modify their credit scoring models to consider it negative. Of course, if they determine that consumers who have this on their credit reports are not an elevated credit risk, they will probably do nothing. Only time will tell.
This Article is Courtesy of Credit.com

What Question do you have about loan modification?  
Scroll all the way down to submit your question

There are solutions don't give up

Social Media Sites Becoming Key Screening Tool in HR:  Is this Legal?

Careerbuilder.com reported that 1 in 5 employers (20%) is now checking various social media sites as a pre-employment screening tool. That number is up from 11% in 2006. The same survey indicated about 33% of hiring managers rejected candidates based on what they found while 24% found information that helped the manager make a decision to hire the applicant. Read the rest  (buttom of page 1)Print the report.

What does this mean for Mortgage Applicants?
5 simple suggestions:

• Don't post any private information on line you don't want your employer to find today or kids to find out about you in 20 years.
• Keep "Private Discussions" private- OFF LINE
• If you use Social Media for business CHOOSE WELL your connections
• Keep your communications on a professional basis
• Stay away from gossip you never know how it will backfire

Only a few stories that we read impact us so much that we just cannot stop thinking about them and Andy Andrew's, The Butterfly Effect,is one of those stories. The Butterfly Effect is an unforgettable story about how our world is an incredible life of permanent purpose. Enjoy this 3 minute movie and be inspired to live a life of permanent purpose that will make you a better parent, a better spouse and a more valuable friend.

Submit your question you can submit more than

HVCC has cost potentially $1.7 Trillion in equity - 07.10.09

Watch Video

The "Big Banks" are quiet about HVCC cause they co-own AMC's. Potentially $1.7 Trillion in equity has been lost due to HVCC. AIG is looking for more bonuses?

URGENT HVCC UPDATE:

HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.

ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.

Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives: www.hvccpetition.com

A gift for Happy 4th of July Find YOUR SATURDAY

Click to start the video it make take a little to load

go to http://budurl.com/zq39 and claim your Saturday

Let's finish the years strong watch the movie "FINISH STRONG" below

get INSPIRED and EMPOWERED

Mortgage nightmare HVCC appraisal regulation hurting the already straggling Housing Market

• How one man single handedly wacked the housing market even further
• what you can do to help and spread the word.
  
  Read more watch a video, comment, ask a question on HVCC

Are Subsidized Mortgage Rates Coming?

With mortgage rates returning to levels seen before the Fed pledged to buy up billions in mortgage securities, it might be time to turn to a costly Plan B, subsidizing mortgage rates.

Rising interest rates have already extinguished a short-lived refinance boom, with applications dropping precipitously over the past three weeks.

Mortgage rates, which slipped to a record low 4.78 percent on the popular 30-year fixed as recently as early April, have since risen above 5.50 percent, following the surging 10-year bond yield.

So now it appears as if the Obama Administration will need to come up with something more, which could be in the form of explicitly guaranteed rates.

Remember that whole plea for 4.5 percent mortgage rates to stabilize housing?

Then the National Association of Home Builders went a step further, calling for interest rates as low as 2.9 percent to spark sales and shed inventory; that wild proposal clearly fell on deaf ears.

Now the newly formed Housing Working Group of Business Roundtable, composed of the nation’s top CEOs, has called for lower mortgage rates to stimulate the housing market and lead an overall economic recovery, but it appears the only way that will happen now is with subsidized rates.

Unsurprisingly, the National Association of Realtors applauded the efforts of the roundtable group, asking for more concessions to spark flagging home sales and buoy corresponding home prices.

“NAR has called on Congress and the Obama administration to expand the first-time home buyer tax credit to all home buyers, regardless of income,” the Realtor group said in a statement.

“In addition, it is imperative to maintain mortgage interest rates below 5 percent, make the loan limit increases permanent, and strengthen foreclosure mitigation and loan modification efforts. These are all actions that BRT is fully supporting and we welcome their involvement.”

Seeing that lowering mortgage rates seems to be the Fed’s main solution to this housing mess, it appears likely something will be done to get rates back down near record lows.

Unfortunately, the repercussions of such a move could extend the housing crisis, keeping home prices elevated and subsequently pushing future home buyers out of the market.

Then there’s the cost of funding such a program, and the fact that subsidized rates tend to benefit the wealthiest of homeowners.

Ugh.

If you’re looking to stay abreast of the latest mortgage industry news, sign up and get the FREE  Mortgage Video News

got a question Email us info@loans-4-u.com

 courtesy of "The Truth about Mortgage"

Ohio Judge tosses out 14 Foreclosure Cases

IN RE: Foreclosure Cases

CASE NO. NO.1:07CV2282, 07CV2532, 07CV2560, 07CV2602, 07CV2631, 07CV2638, 07CV2681, 07CV2695, 07CV2920, 07CV2930, 07CV2949, 07CV2950, 07CV3000, 07CV3029

CASE: 07-cv-02282-CAB

Fourteen pending foreclosure cases were brought before the district court of the Northern District of Ohio by the Plaintiff-lenders invoking its diversity jurisdiction¹. The Court issued an Order requiring submission of an executed Assignment to show and prove that the Plaintiff was the holder and owner of the note and mortgage as of the date of filing of the complaint. In its amendment of the Order, Court further required the plaintiff to submit an affidavit alleging therein that Plaintiff is the original mortgage holder, or as an assignee, trustee or successor-in-interest. Thereafter, the Court judiciously heard the parties' arguments.

The issue to be resolved by the Court was: Whether or not the documentary evidence submitted by the plaintiff, as trustee for securitized pools of mortgages on behalf of the mortgage investors is sufficient to establish its ownership of the note and mortgage. Corollary to this issue is, whether or not the plaintiff can establish legal standing to invoke the diversity jurisdiction of the federal court.

The Court in addressing the first issue scrutinized the documentary evidence submitted by the plaintiff. It observed that the affidavits it required to be submitted averred that the Plaintiff is the owner of the note and mortgage but as for the Assignments, none was mentioned about the ownership of the Plaintiff. Instead, what was mentioned was the intention of the plaintiff-lenders to transfer the title, interest and all rights in the mortgage upon receipt of a specified consideration and a note to the Plaintiff named in the Foreclosure complaint caption. Moreover, these assignments were prepared by plaintiffs' counsel and therefore belie the claim of ownership as of the filing of the complaint.

Pursuant to Ohio law, all matters that involve real property must be in writing and in cases of assignment, the assignee is only entitled to receive distribution from the sale of said real property if such interest is recorded in accordance with the requirements of law.

Anent the issue of legal standing, the Court ruled that the Plaintiffs failed to establish their standing. It clarified that before a party can invoke diversity jurisdiction, three constitutional requirements, i.e. proof of injury in fact, causation and redressability. In other words, plaintiff must show that he personally suffered some injury. Moreover, he must establish that he is the proper party, that the suit is the proper mode to obtain relief.

Plaintiffs failed to prove all of these elements by reason of its premature filing of the action. The Court ordered the dismissal of the fourteen foreclosure cases without prejudice.

¹ Kenneth M. Lapine, in his commentary in LEXISNEXIS, explained that there is a trend to file foreclosure cases in federal courts most especially in northeast Ohio because of the clogging of state courts due to already pending foreclosure cases and federal courts are more efficient in the disposition of cases. Moreover, most of the parties in foreclosure cases are domiciled in states other than Ohio; therefore there is diversity of citizenship jurisdiction.

Written by Kevin Levonas and Giselle G.

Congress Woman Maxine Waters has been Hanged up on

What are your chances to have a successful Loan Modification?

do you need help modifying your home loan?

Call 954-567-7300

By Shobhana Chandra and Courtney Schlisserman

March 17 (Bloomberg) -- U.S. housing starts in February unexpectedly snapped the longest streak of declines in 18 years, raising optimism the market may be finally finding a floor.

Work began on 583,000 homes at an annual rate, a 22 percent increase from January that was propelled by a surge in condominiums, apartments and townhouses, Commerce Department figures in Washington showed today. A separate report showed gains in producer prices slowed, underscoring a lack of inflationary pressures with the economy in a recession.

“It’s a bit too early to get too excited, but we are nearing the bottom in housing,” said Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis, who had forecast an increase in starts.

The lifting gloom pushed up builder shares, led by gains at Toll Brothers Inc., the nation’s largest developer of luxury homes, and Pulte Homes Inc., the largest homebuilder. The Standard & Poor’s 500 Supercomposite Homebuilding Index advanced 6.4 percent to close at 188.92 in New York.

Building permits, a sign of future construction, rose less than starts, indicating construction may again slow. Developers are still contending with record foreclosures that depress prices and profits, and put pressure on the Federal Reserve, which meets today and tomorrow, and the Obama administration to solve the credit crisis.

Starts were projected to fall to a 450,000 annual pace, according to the median forecast of 71 economists surveyed by Bloomberg News. Estimates ranged from 400,000 to 500,000. January’s starts were revised up to 477,000 from a previously estimated 466,000.

More Permits

Permits increased 3 percent to a 547,000 annual pace. They were forecast to drop to a 500,000 annual rate, according to the survey median.

“You get the sense from a lot of the data coming out now that we’re beginning to get to a bottom,” Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts, said in an interview with Bloomberg Television. “We’re not quite there yet.”

The Labor Department reported wholesale prices rose 0.1 percent in February as the cost of energy products, cigarettes, light trucks and household appliances increased.

The increase was less than forecast and followed a 0.8 percent advance in January. Excluding food and fuel, so-called core prices rose 0.2 percent.

Compared with February 2008, producer prices were down 1.3 percent.

Slack, Prices

“There’s just a huge amount of slack now in the U.S. economy and the global economy” that’s keeping prices down, said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. “That’s going to hang around for some time.”

Economists predict Labor will report tomorrow that consumer prices increased 0.3 percent in February for a second month. January’s gain was the first in six months. Excluding food and energy costs, consumer prices rose 0.1 percent, according to a Bloomberg survey.

Fed Chairman Ben S. Bernanke said last week that the central bank is “not anticipating deflation,” or a prolonged drop in prices that hurts profits and makes it difficult to repay loans.

Bernanke on Inflation

“We are committed to price stability, we believe we have the tools in place to do that,” Bernanke said March 10 in response to a question after a speech to the Council on Foreign Relations in Washington. “Right now both the objectives for price stability and the objectives for growth are pointing in the same direction and that is for strong support of the economy.”

Fed policy makers will keep the benchmark interest rate near zero following their two-day meeting tomorrow and discuss additional measures to calm the credit crisis, economists said.

Bernanke and his colleagues are examining whether to expand existing asset-purchase and lending programs or initiate fresh measures, such as buying Treasuries. The central bank also is purchasing Fannie Mae, Freddie Mac and Federal Home Loan Bank debt under a program aimed to reduce mortgage costs.

The Commerce report showed construction of single-family homes climbed 1.1 percent to a 357,000 rate. Work on multifamily homes, such as townhouses and apartment buildings, surged 82 percent to a 226,000 pace from 124,000 in January.

Northeast Surges

The increase in starts was led by an 89 percent jump in the Northeast.

Banks need to “go the extra mile” and keep credit flowing to businesses to prevent the economy from worsening, Treasury Secretary Timothy Geithner said in remarks at the White House yesterday. The economy has lost 4.4 million jobs since the recession began in December 2007.

President Barack Obama has pledged a $275 billion rescue to help keep as many as 9 million borrowers in their homes and trim foreclosures. His efforts also include a tax break of up to $8,000 for first-time homebuyers that wouldn’t require repayment.

To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net

The Conversation w/ FDIC Chairman Sheila Bair from Tuesday 3-3-09

Those who know me know that I am not a TV watcher at all but last night was an exception. I came home late 9pm after a long day of doing #'s and structuring transactions for clients and realtors I work with. This year I am participating in a BLITZ program through Buffini and Company. This is the coaching company for Real estate people. So far this year Thanks to all of you helping

I got     52 referrals     Thank You, Thank You, Thank You,

This BLITZING is amazing I want this flow to continue forever, If you are in Real Estate you owe it to yourself to check it out by going to the site

My coach Bev wants me to get to Win BIG this year. She is getting me to what I didn't know I could. Thanks Bev

I only wanted to vegetate so I flipped channels and landed on CNBC show "Who is Protecting Our Money" with
Erin Burnett "Squawk on the Street" Co-Anchor and "Street Signs" Anchor, and
Jim Cramer "Mad Money w/ Jim Cramer" Host

And... they were talking about housing, mortgages and our money. I thought you would like this one it's about 10 minutes.

Here is a shorter segment:"The impact of foreclosures is dragging down the economy, Bair says. This is a housing-led recession and we need to acknowledge that everyone – from borrowers to lenders to the government – made mistakes along the way. We now need to look forward and determine what can get us out of this."

And another short one on Homeownership: Privilege or Right? Sheila Bair Responds"The American Dream has always come down to homeownership. But as we look back on what got us into this mess, we now must ask a tough question: is owning a home a privilege or a right? Bair says we must go back to how we once looked at our homes – not as an ATM machine but as a place to live and accumulate wealth over a lifetime. Somehow, we lost our way now we have to find it again."

Tonight  3-4-09 9pm EST they have another Town Hall on homes that may interest many of you here is the link http://www.cnbc.com/id/29240551/

Have a BLITZING Day

 
Racheli Smilovits

http://www.loans-4-u.com/
Bio http://www.meetracheli.com/

P.S. Who do you know that is ready to buy their 1st home and... get an $8,000 Tax credit? yes you are reading right!

P.P.S You know we'll take very GOOD CARE of them,

Thanks 

This Holiday's and New Year season Albert Einstein had a profound message.

Is there Darkness?   Is there Evil?  Is there Cold?

I hope you will reevaluate how you feel share the light.

 P.S. Please post you comment below

Let’s start the year with the right price.

By G.M. Filisko | December 2008

Most sellers feel the improvements they have completed are worth more than the buyer feels they are.
An objective view is critical in pricing.

Yearly National Association of Realtors is putting out a report 2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs

Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.

What are the 10 biggest "return on investment" projects?

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)

2. Midrange wood deck (81.8%)

3. Midrange vinyl siding (80.7%)

4. Upscale foam-backed vinyl (80.4%)

5. Midrange minor kitchen remodel (79.5%) 

6. Upscale vinyl window replacement (79.2%)

7. Midrange wood window replacement (77.7%)

8. Midrange vinyl window replacement (77.2%)

9. Upscale wood window replacement (76.5%

10. Midrange major kitchen remodel (76.0%)

What cities are getting the most return on investment?
Read the entire article it's very interesting

                 Light someone's world today

To find out more information click below

 Holidays 2008
Together We CAN Make a Difference

Nothing but Good Spirit, Touch Someone Today,

Please tell us how being a Johnny touched you back by posting your comments below. We will collect them all and on New Year send it all together in a nice format.

Click on the image to view

Courtesy of  Simple Truths

The People Won Doc Stamps on Deeds are back to normal!!!

When a real estate transaction takes place there are Documentary Stamps that are paid by the seller based on the purchase price.

Example:
Normally if
Purchase Price:    $200,000    Doc Stamps $7 per $1,000    =$1,400

Recently with the growing numbers of Short Sales the Florida Department of Revenue, chose to read the law so that the seller-the lender in a Short Sale, will pay doc stamps on the out standing loan amount which is much higher than the purchase price.

What the Department of Revenue wanted it to be is
Loan Balance:     $300,000    Doc Stamps $7 per $1,000    =$2,100
                                                             
                                                             Difference     =$  700

Many of the lender in new contracts I saw were passing the fee for the doc stamps on the deed to the buyer. Please watch the contracts

The Department of Revenue was challenged and finally reversed the short lived ruling.

We are back to normal Doc Stamps on the dead will be paid on Purchase Price.
To see the Letter from the Department of Revenue click here Let me save you time go to page 4.

I am often asked: “Are we at the bottom of the bottom?”

With this new law and some other indicators like "The national home ownership rate -- defying all gloom and doom predictions -- jumped to 68.1 percent in the latest quarter, up from 67.8 percent", I think this is it I truly believe it.

More home buyers mean more home sellers. Where do those sellers go? Yes to buy more hoses. The wheels of the Real Estate Market are starting to move, we are going some where.

Are you still an “on the fence” home buyer not sure if this is the right time to jump in the game?

Did you feel that just a few years back home ownership was slipping away from you due to the steep rise in home prices?

Well, if you answered yes to those questions you don’t need to wait any longer. Your dream of home ownership can come true if you act now TIME IS OF THE ESSENCE!

• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
  Do you know a friend who bought a home after April 9 this year? Share it with them.
  
  
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
  
  
• Married Couples can qualify to a maximum of $7500
  
  
• Single people can qualify to a maximum of $3,750
  
  

You have to be a First-Time Home Buyers or a Renter who hasn’t owned a home in the last 3 years.

Here are some more resources

• Video News at a Glance
  Watch the Mortgage and Real Estate Video New Channel you can sign up on the top right of this page.
  Frequently Asked Questions
  The Law’s Other Provisions
  Home Buyer Resources
  www.federalhousingtaxcredit.com
  
  

Please remember, We are here to serve you.

100% home loans

Down payment Grants

Seller concessions

And now the $7,500 Tax credit

Act now or you may have to waive this opportunity “Good By”

Have a question email us at info@loans-4-u.com or call Racheli at

 Thanks, and I am looking forward  for the opportunity to serve you.

Serving you in 49 states
866-927-5200 Ext 203
954-567-7300

First Time Home Buyer Derrick R was denied. Twice he was told No by 2 people.

The seller’s Realtor suggested he call a mortgage advisor she knows who can work miracles…
Working with a professional mortgage advisor like Racheli Smilovits can work miracles for you too.
How knowing someone like Racheli can assist you?
Please give us your comments right here below.

Home Buyers do you know what you need to do before you jump in the car to look at homes?

Home Sellers do you know what to do to sell your home fast?

Click on the image to sign up to get the latest news regarding Real Estate, Mortgages Financing and more. Real Estate mortgage news channel. What to do to prepare yourself to buy of sell a home. Feel free to come back as it is constantly updated. Even as one who is keeping up to date I found some good advice and tips. I would love to hear your comments, send me one OK?
When it's time to run YOUR numbers give us a call 954-567-7300 

Remember, Don't keep this information a "SECRET", share it.
We will be honored to serve you and your referrals,

Thanks

Are you agonizing the conversation with your realtor about price cutting several times over? Buyers Are Out There To Buy Your Home.

This is a real case study we had a couple of months ago. As a lender I teamed with a Realtor and the home sold in under a week, after being on the market for 8 months.

Before we start let me make sure you understand one VERY IMPORTANT FACT. If you continue to TRAIL THE MARKET, i.e. reducing your price as the market goes down; you have LITTLE or NO CHANCE to sell any time soon. Sorry I have to be so blunt.

Position yourself A HEAD of the market to get a buyer interested to come and preview your home.

Got it? Great.

Here are 5 actions we took and the home IS SOLD.

The facts.

1. Home 1^st on the market August 2007 for $369,000
   On Mach 2008, the price wad down to $319,000 down 14% and still no sale
2. If the down trend continues by August 2008 it will go down to $240,000-$250,000 range.
3. Homes sold were in the range of $320,000-$260,000
4. The longer the home is on the market the more stale it tastes to a buyer.

We discussed those facts with the seller who understood they needed to act fast.

So here is what we did.

1. Be very clear.
   Be clear on WHY you are selling, WHAT are your goals. WHERE you want to be and by WHEN. Our buyer has already moved they were carrying 2 mortgages
   
   
2. We got the stats in the neighborhood.
   Closed sales Prices, and the for sale homes prices in the neighborhood. We compared them to our home. The sold ranged from $340,000-$260,000. The last one was a short sale.
   
   
3. New Lower Sales Are Creating A New Market
   If you don’t make the market, be assured someone else will create for you. The new $260,000 short sale created a new base in this neighborhood.
   We priced it at $289,000 with 3% (about $10,000) towards the buyer closing costs and buy downs. This tactic placed the home a head of the market.
   
   
4. If your home has been for sale for a while, the Market is telling you “your home is over priced”, it’s not your realtor or me telling you that.
   Sunday, we reduced the home price to $299,000
   Tuesday an offer came at $270,000
   Thursday it was negotiated and signed for $285,000 with $10,000 for the buyer closing costs.
   The home was sold in under a week when it was priced RIGHT. The seller was ecstatic.
   
   
5. Position your home RIGHT for this market.
   Location, Location, Location was the motto in Real Estate. These days in my opinion the motto has changed to Price, Price and yes PRICE.

Can you see how pricing your home right in this market means the difference between Selling and Listing your home?

I would like to offer you a free access to the weekly video news Channel so you can stay informed and up to date, also you will get the free guide “10 biggest mistakes people make when Selling a home” by going to http://www.yourmortgagecafe.com , to sign up. When you need a referral to a professional realtor in your area please Email me at info@loans-4-u.com I’ll gladly refer you one.

Please post a comment right below with your opinion, or how you used this tip to assist you in selling your home.

Thanks

Here are 5 tips that will help you score your sellers motivation level. Use it as another tool to help you in the process when buying a home

1. How many homes in the subdivision, Neighborhood, or condos are for sale?
   If over 30% are for sale give the seller 10 points
   If over 20% are for sale give the seller 6 points
   If over 10% are for sale give the seller 4 points
2. When did your buyer buy the property they are currently selling?
   Before the year 2000 give the seller 1 point, each year after add 2 points.
   Year 2001 give the seller 2
   Year 2002 give the seller 4
   Year 2003 give the seller 6
   Year 2004 give the seller 8
   Year 2005 give the seller 10
3. How is the house maintained inside and out?
   Very poor and neglected give the seller 10 points
   Okay but needs improvements give the seller 6 points
   Well but could use a face lift give the seller 4 points
   Very well maintained give the seller 2 points
   
   
4. What’s owed on the property Compared to the asking price?
   10% of the difference give the seller a 10 may be short sale.
   20% of the difference give the seller an 8
   30% of the difference give the seller a 6
   <40% of the difference give the seller a 10
5. How many months of inventory are currently available?
   6-8 months 2 points
   8-12 months 4 points

How did your seller score?

40-50 points very motivated
30-40 points some what motivated
30 or less points has time to ride the storm

Use this quick scoring tool to guide you when you are in the process of presenting an offer to buy a home. By all means this is NOT the only tool to take into consideration. Consult with your realtor. Get pre-approved (Not just pre-qualified) submit a pre-approval with your offer to a very motivated sellers and your chances to get the home of your choice are increased a lot.

And now you can see how easier it is to pick your best home. Need a referral to a professional realtor in your area? Please Email me at info@loans-4-u.com I’ll gladly refer you one.

Posted on The Wall Street Journal

The Housing Crisis Is Over

The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.

The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high – but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.

Inventories will drop even faster to 400,000 – or seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.

Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.

Most importantly, it neglects the fact that a great majority of Americans buy their houses with mortgages. And if one buys a house with a mortgage, the most important factor in deciding what to pay for the house is how much of one's income is required to be able to make the mortgage payments on the house. Today the rate on a 30-year, fixed-rate mortgage is 5.7%. Back in 1981, the rate hit 18.5%. Comparing today's house prices to the 1970s or 1980s, when mortgage rates were stratospheric, is misguided and misleading.

This is all good news for the broader economy. The housing bust has been subtracting a full percentage point from GDP for almost two years now, which is very large for a sector that represents less than 5% of economic activity.

When the rate of house-price declines halves, there will be a wholesale shift in markets' perceptions. All of a sudden, the expected value of the collateral (i.e. houses) for much of the lending that went on for the past decade will change. Right now, when valuing the collateral, market participants including banks are extrapolating the current pace of house price declines for another two to three years; this has a significant impact on the amount of delinquencies, foreclosures and credit losses that lenders are expected to face.

More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure.

A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy.

We are of course experiencing a serious housing bust, with serious economic consequences that are still unfolding. The odds are that the reverberations will lead to subtrend growth for a couple of years. Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.

Mr. Moulle-Berteaux is managing partner of Traxis Partners LP, a hedge fund firm based in New York.

See all of today's editorials and op-eds, plus video commentary, on Opinion Journal.

And add your comments below

Are you finding it hard for you to pick the Home that is best for you?

A realtor posted this question on our forum: we are working with a client who "want to see everything". This is the second Saturday in a row that we are out all day showing them 10+ properties. We have tried to narrow her focus to specific areas but to no avail. There are still a LOT of homes left to see! Any ideas on how to explain to this client that it does not serve her best interest to view 10+ properties at a time.

Is it hard for you to pick the house that is best for you?

Here are 5 Tips that will help you make a decision.

1. Do You Know what you DON’T want and what you DO want in a Home-
   When you have a few major Items you want in a home ask your self” “What’s important to me in #1” and #2, 3 and so on have at least 5 points you are looking in a home. However many points you have, prioritize them. Notice what comes up. It will get you focused and quid you on finding the right home for you. Take with you the list of the things you want and don’t want in a home.
   
   Sit with your realtor and discuss those issues thoroughly. DON’T rush to get in the car to see homes before you narrow down what you REALLY WANT, It’s hard to find anything if you don’t know what you are looking for first, right?
   
2. What I Don’t like and what I DO like about this home? -
   When you’re done going through the home, discuss with your realtor again “What I don’t like about this house and why?” And “What I do liked most about this home and why?” How do your answers compare to the items on your list? LListen to your realtor who will point out to you what you said you want. See even if what you like about this home is 1 of the 5 you said you want. Don’t be surprised if it’s not.
   
3. Which Home out of those 2 would you pick? –
   Go to the 2^nd home you chose to preview. Ask again the same 2 questions, what you don’t like and what you do like about this home. Now add another question, “If you had to make a choice between those 2 homes which one would you pick and why?” Can one be a home for you or is it another house? A “Home” can belong to you; a “House” belongs to someone else. Listen to your answers. It may surprise you that what you liked in one of the homes more is NOT one of the Top 5 on your list. Keep taking checking your list and compare notes.
   
4. You Must Eliminate 1 House of those 3 Homes you Previewed-
   After previewing the 3rd home, ask the same questions and take very good notes. Before going to house # 4 you must eliminate one of the first 3 homes, or you are setting yourself up for confusion. Remind yourself what you want and notice how it makes you feel. You may notice how much easier it is to choose because you know what you really want. I would like to suggest that you pick the best 2 homes out of those 3, and eliminate 1 house.”
   
5. Repeat Step 4 once you go to the next house. More than 3 homes on your plate is “indigestion”. Professional realtors guide their clients through the process. Your realtor wants to help you buy your dream home, lean on them.

I hope this helps and makes it easier to pick your best home. When you need a referral to a professional realtor in your area please Email me at info@loans-4-u.com  I’ll gladly refer you one. I would like to offer you a free access to the weekly video news so you can stay informed and up to date, also you will get the free guide “10 biggest mistakes people make when buying a home” by going to http://www.yourmortgagecafe.com , to sign up.

Click on the player below to listen to the  1st ClubNetters Interview.

Neil Interviews Samina A Realtor from Howard County Maryland

Written by Kenneth R. Harney Realty Times
April 14, 2008 Realty Times

There are literally dozens of bills on Capitol Hill that are aimed at relieving the mortgage and housing crisis. Some of them -- like FHA reform -- have been bouncing around for months with no final action.

On the House side right now, what could be the mother of all housing-relief bills is taking shape. Reportedly it will roll together reform of Fannie Mae and Freddie Mac, plus all sorts of new add-ons, including a $300 billion authorization for FHA to buy up and refinance delinquent mortgages held by private lenders.

Meanwhile, in the Senate, there's legislation to provide huge new tax benefits for home builders, new deductions for home owners who don't itemize, and tax incentives for buyers of foreclosed houses.

But the White House warned last Wednesday that it didn't like the way that bill was shaping up -- hinting at a possible veto if it passes in its current form.

With the total number of legislative days left before the Fall elections down to less than a month, can this Congress actually deliver housing market relief? That's a tough question, but it would speak volumes, if, during the worst foreclosure crisis since the Great Depression, the U.S. Congress could not gets its act together to produce much of anything.

Just about the only action spot in town at the moment appears to be at the Federal Housing Administration.

Last week, in a significant expansion of its efforts to reach out to troubled subprime and other borrowers, the FHA announced new criteria for its "FHASecure" program. Under the revised plan, even borrowers with seriously delinquent payment histories will get a shot at refinancing into an FHA fixed rate loan:

• Homeowners with adjustable-rate loans who have been late on two consecutive monthly payments during the prior 12 months, will now qualify for regular 3 percent equity FHA-insured mortgages.
• Owners who were late on three consecutive payments will qualify for FHA refinancing, but will need to have 10 percent minimum equity stakes.

These borrowers' current lenders will be allowed to help their clients by writing down principal balances to the 90 or 97 percent loan-to-value level required by FHA. Lenders will get a little "haircut" -- they'll have to forgive some debt, but it should a lot less than if they went to foreclosure.

FHA estimates that with the expanded reach of FHASecure, a total of 500,000 troubled families will refinance into fixed-rate loans by the end of 2008.

Bottom line: At least somebody in Washington is producing solutions. But so far, it hasn't been Congress.

Written by Kenneth R. Harney
April 14, 2008