Real Estate Blog

What is a Short Sale and How Do They Work?

noreply@blogger.com (Peggy Hoag) — Tue, 23 Feb 2010 00:04:00 +0000

The key to working with the bank is to find the right department, then understand how to work with them.

There are a number of different departments within the bank. The Customer Service Department is designed to get you to the right place for your particular problem. As long as they take the time to understand what you want, they are a resource that will get you to the right people. To understand where you might be misdirected, here are the departments that you do not want. The Collections department is to get money out of the borrower, maybe get the account current or get it foreclosed and out of the system. The Bankruptcy department deals with loans that are in bankruptcy, typically seeking to get the properties removed from the protection of the bankruptcy stay. The Foreclosure department is to march directly to the foreclosure sale with minimal distractions, typically providing the borrower only with the amount necessary to fully reinstate the loan or the amount for a full payoff of the loan.

What you want is the Loss Mitigation department designed to lessen the loss to the bank primarily by facilitating short sales. To understand the difference, members of the collection department get bonuses for getting money paid on the loan or for getting money recovered through foreclosure. Members of the loss mitigation department get bonuses from completing a short sale and recovering money for the bank through the closing of the sale.

Do they publish the phone numbers for the loss mitigation department? No.

So, how do you get there? E-mail me for a list of most of the banks Loss Mitigation Department telephone numbers.

Most people would look on their mortgage statement from the bank. If you are behind on your payments, do not call the phone number on the mortgage statement, because it is the collections department. They will try to get some kind of payment, and they are under extreme time pressure in their call, as most of them are timed for how long they are on each call. If they transfer you to loss mitigation, some firms give the collector a black mark. Find an old loan statement from when the payments were on time because the number on that statement will get you to customer service department. Get them to transfer you to the loss mitigation department.

When you call loss mitigation, you will typically get a gate keeper who can give you some preliminary information. Some of the departments will tell you what you need in the short sale package. Others will send you a form with that information. Still others have that information online. Get that information as soon as you can, because you want to tailor your package to their requirements. They review hundreds of packages, so if you put your information in a format that is easy for them to review, you will get a better reception form the negotiator.

Most loss mitigation departments will not deal with you in any significant way unless you have an offer. Once you have an offer, submit it in the manner we describe in the Step by Step guide. Then, start calling loss mitigation about once a week to see that it moves along. When your package gets to a negotiator, see what you can do to make that negotiators decision easy. Provide everything they request in the format that they want as quickly as possible.

Communicating with some loss mitigation departments is extremely hard. When you call the Countrywide loss mitigation number, and go through the prompts, more than half the time you will be transferred to collections. They will try to tell you it is the same thing, while they are asking what you can do to get the seller to bring the account current and suggest you call HUD to learn about how to reinstate the loan. You learn to smile at their claim that they are the same.

Countrywide has a system coming out of their merger with Bank of America to send secure emails, where you need a password. That sounds simple enough. However, on many occasions the system will not let you get to the message even if you get the password emailed to you and you copy and paste the password into their system. In other words, you can enter it perfectly and not get the message. So, you send a regular email to the negotiator. Many negotiators will not respond to regular emails. So they get mad that you did not get their message. So, you call and leave a voice mail. Most negotiators will respond to a voice mail one to two days later. If you are not immediately available to answer their call, you will get a message. So, you return the call, get their voice mail, you leave a message and it could be another two days.

Another example is Bank of America. They get between 500 and 1,000 short sale packages a day. So, the negotiators do not have time to talk to you at all. You communicate by the cover sheet on the fax or the documents in the package. So, if you have a message for the negotiator, put it in the fax cover sheet or a letter on top of the package.

What is the solution? Creativity! Most Realtors are good finding a way to get in touch. With Citibank, I found that the gatekeepers (i.e. the first line of defense in the phone system) had access to the loss mitigation negotiator’s files. So, when I wanted to find out what was happening, I called so often that I got to be on a friendly basis with a few gatekeepers. They would read me the notes in the files.

Keep on calling. Many loss mitigation departments will not contact you with the results of their review. I found out that Countrywide had rejected one of my short sale applications six days earlier when I made my weekly call. They did not give a counter offer, just a rejection, so I got the buyer to increase the proposed price and submitted that offer. In other words, I have to be the one who communicates, because they do not have time to get messages to you.

Even though communication with loss mitigation is difficult, it is far better than any of your other choices because the purpose of the loss mitigation department is to get the short sale reviewed and possibly approved. Patience and the ability to hold your temper is key when you get transferred a dozen times or disconnected just when you are getting to the right person. If you make the negotiator mad, you will get an approval that you can never perform. So, once again, it is all about the relationship.

Realtors are good at communication, this is just another opportunity to improve our skills.

Will I have to pay for closing costs and prepaid items out of pocket?

noreply@blogger.com (Peggy Hoag) — Fri, 19 Feb 2010 21:00:00 +0000

Not necessarily. This can be handled one of two ways; Either the closing costs and prepaids can be paid out of pocket or they can be included in the sale price and be specified as closing costs to be paid by the seller. It is not possible to finance these items separately from the home purchase. However, the seller is allowed to contribute toward your closing costs. When the seller pays the buyers closing costs and prepaids this is referred to as seller paid concessions. Some loan programs limit the amount the seller is allowed to pay. Your mortgage advisor will be able to give you the specifics that apply to your situation.

Help Portland Street Youth Today thru 104.1 FM The FISH

noreply@blogger.com (Peggy Hoag) — Thu, 18 Feb 2010 21:30:00 +0000

TODAY help us provide food and care to Portland Street Youth! Bert and several TY staff members and volunteers are manning the phones at 104.1 FM during Transitional Youth’s all-day Radiothon.

Partner with Transitional Youth and 104.1 The Fish as we help make a positive difference in the lives of our local homeless street youth. They are hungry and hurting, especially during the rainy season.

The majority of homeless youth have suffered from physical, emotional or sexual abuse. Some youth end up homeless because they are literally abandoned by their parents. The stark reality may be the streets are safer than their former living environments.

Through our Hungry for a Future campaign, your gift of $43 will provide 30 Portland street youth a hot meal and temporary relief from the weather. Click here to learn more and see how hunger and hope can begin with a meal and your support. Or click here to donate now. Then tune in today as we reach out to provide hope and a future to our homeless youth!

Thank you for your ongoing support … please share this message with your friends!

Sincerely,

Your friends at Transitional Youth

14945 SW Sequoia Parkway #150, Portland, OR 97224 l 503-350-7268 l http://www.transitionalyouth.org/
Transitional Youth is a 501(c)(3) non-profit organization

Forbes ~ Portland Oregon is one of the U.S. cities where renters should buy now!

noreply@blogger.com (Peggy Hoag) — Wed, 03 Feb 2010 22:37:00 +0000

By Francesca Levy of Forbes ~
The gap between what you'd spend on rent and paying a mortgage is shrinking in these metro areas.

The U.S. government has pushed hard to make homeowners out of the one-third of Americans who still rent their homes. It introduced and later extended a tax credit for first-time homebuyers, and has kept federal interest rates at their lowest levels since the 1940s.

Market conditions are such that now is a particularly good time for some renters to take the hint.
In Portland, Ore., San Francisco, Minneapolis and Washington, D.C., the premium to buy - the spread between what you'd spend on renting and what you'd pay each month for a mortgage - is far narrower now than its 15-year average. And economists predict a significant home-price hike in five years. So upgrading will cost much less than usual, and homebuyers are likely to get a good return on their investment.

Note that buying isn't necessarily cheaper than renting in these metro areas. In fact, it often remains a more expensive proposition. But for those determined to own, that investment is a better one now than it normally is.

Will I have to pay for closing costs and prepaid items out of pocket?

noreply@blogger.com (Peggy Hoag) — Wed, 27 Jan 2010 23:35:00 +0000

Not necessarily. This can be handled one of two ways; Either the closing costs and pre-paids can be paid out of pocket or they can be included in the sale price and be specified as closing costs to be paid by the seller. It is not possible to finance these items separately from the home purchase. However, the seller is allowed to contribute toward your closing costs. When the seller pays the buyers closing costs and prepaids this is referred to as seller paid concessions. Some loan programs limit the amount the seller is allowed to pay. Your mortgage advisor will be able to give you the specifics that apply to your situation.

Will I have to choose all of the Key people involved in the transaction?

noreply@blogger.com (Peggy Hoag) — Fri, 08 Jan 2010 21:05:00 +0000

It is critical to have top key professionals. Finding a good real estate agent is an important staring point. Your real estate broker can be a valuable resource when it comes to selecting your mortgage advisor and your title and escrow officer. The working relationship your real estate broker has with them will help ensure you are well served. If they do not do a top job for you, their relationship and future business are at risk.

Your real estate agent can also recommend professionals they have worked with who consistently provide a high-level of service for all aspects of the transaction. From inspectors and repair men to cleaning and landscape services.

Having top key professionals handling all aspects of a home sale or purchase can be the difference between a successful move and a disastrous one.

WHAT IS YOUR HOME REALLY WORTH RIGHT NOW? Is Zillow right?

noreply@blogger.com (Peggy Hoag) — Thu, 17 Dec 2009 02:00:00 +0000

What Is Your Home Really Worth?

The most commonly asked question from clients is "What is my home worth right now?". There are three basic ways to estimate the value of a home. They are: 1) value estimation web site; 2) comparative market analysis and 3) professional appraisal.

There are a number of web sites which offer value estimates of your home based on data you input in their web form. The value these sites offer is an estimate of your home's worth based on their system which may use a proprietary formula. If you read carefully, you are also advised to do the following: 1) obtain a comparative market analysis (CMA) from a licensed Real Estate agent and 2) have a professional appraise your home.

Since these on-line valuations use a proprietary formula which is not shared with the public, the only way to verify the true value of a home is to have professionals with "boots on the ground" visit the property and generate a value based on first hand knowledge.

The hard reality is a home is worth what the market will bear at the time it is sold. The most reliable estimate comes from the sale prices of the SOLD homes in your neighborhood for the past three months which are similar in size, condition, etc. This Comparative Market Analysis is an average of those values. Because home prices may not have reached the bottom yet, the value may be a percentage point or two below that average. If you've done quite a bit of updating and remodeling, it might be a few percentage points higher.

5 Questions to Consider Before Purchasing a Home!

noreply@blogger.com (Peggy Hoag) — Tue, 15 Dec 2009 18:01:00 +0000

RISMEDIA, December 15, 2009-(MCT)-Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.

Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn't overly dramatic, the dip is likely to get people wondering whether it's time to sign on the dotted line.

The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?

A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?

A: It's hard to tell, but don't count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com's panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone's guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?

A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?

A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you're refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a "strike" interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?

A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now-low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there's growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Selling Is So Last Century...

noreply@blogger.com (Peggy Hoag) — Mon, 30 Nov 2009 23:04:00 +0000

Networking is networking, no matter how the connection is made. Social media has created a new method to connect with people, however the quality of communication is what counts. Face-to-face or a Tweet, the message must engage the person we are focusing on.

We build relationships by learning about our clients. Building a relationship is the first goal of our social media connection.

Many of our clients are Boomers and Gen Xers. The idealistic Boomers are known as the "me" generation. They want you to listen to what they are saying-stop talking long enough to hear! They expect us to understand their focus on "what's in it for me?" They appreciate that we are rooted in the community, have civic interests and are involved in community activities. They don't want a hard sell. They expect us to be the expert. They value in-depth knowledge of the area, the financial climate, the real estate market, and how it all relates to their expectations. We are the expert.

Gen Xers are skeptical and don't trust the establishment. They want to surround themselves with family and friends. We create a connection and care for them. They want quality not brand name. Our data and expertise, not sizzle, demonstrate our professional qualifications and earn their loyalty.

Our job is not to sell. It is to understand our clients and know their desires, lifestyles and financial circumstances that affect their real estate decisions. We turn information into focused knowledge tailored for them. The move from salesperson to counselor reflects the shift from "finding" real property to "evaluating" the property. The desire to buy comes from knowing the benefits of the purchase. In addition to location, location, location, we advise our clients on financing options, investment strategies, taxation issues and much more. We are experts in the subject of real estate. In representing our clients we understand valuation, negotiation, and contract creation. And finally our skill in working with other agents and affiliated businesses closes the circle.

Will I save money purchasing a home from a For Sale By Owner?

noreply@blogger.com (Peggy Hoag) — Wed, 25 Nov 2009 02:40:00 +0000

There may be times when a FSBO is sold at a discount, but to assume that is always the case would not make sense. The seller has chosen not to hire real estate representation specifically in order to save themselves money, not the buyer

To forego professional representation at no cost benefit does not make sense. Investors who buy and sell homes for a living secure the services of an experienced broker. They know that purchasing a home with out an expert’s guidance is a gamble. They rely on their realtor to verify details such as: Sales history, length of time on market, price reductions, permit histories, DEQ history, city sewer connections, correct disclosures and accuracy of all necessary documentation. Knowing the areas in which you are not an expert is as important in life as knowing those in which you are. Unless you are an experienced real estate professional, it is risky to assume that you can rely solely on your own knowledge and experience to guide you through such a costly and complicated transaction.

The true power of the FED is realized as...

noreply@blogger.com (Peggy Hoag) — Fri, 20 Nov 2009 19:18:00 +0000

The true power of the FED is realized as the dollars free fall was stopped just by FED speak...they didn't tighten, they didn't raise rates, all they did was talk about the dollar and the dollar strengthened.

...so that's what we are watching for today!

noreply@blogger.com (Peggy Hoag) — Fri, 20 Nov 2009 18:28:00 +0000

Mortgage rates are holding in positive ground, and are tied to equities...if equities gain ground and go up...so will rates, so that's what we are watching for today!

How long does the loan process take?

noreply@blogger.com (Peggy Hoag) — Mon, 16 Nov 2009 18:22:00 +0000

The typical length is 30 to 45 days. If a quicker closing is needed, discuss this with your mortgage advisor and based on the specifics of your transaction they will let you know if this is possible. It is critical that your mortgage advisor be straight with you on this point. If a closing does not occur on the contractual closing date you are at risk of incurring additional expense if your inability to perform caused another principal in the transaction to incur financial loss.

Are gift funds allowable to use as a down payment?

noreply@blogger.com (Peggy Hoag) — Thu, 12 Nov 2009 18:06:00 +0000

Gift funds from an acceptable source are allowed to be used for your down payment on many loan programs. However, you will need to fully document the funds having been in the gift donor’s account and then provide a paper trail of the deposit or transfer into your account. A gift letter will typically be required. Consult your mortgage advisor to find out if your gift donor is an allowable source. As this is a critical factor, let your mortgage advisor know immediately if any part of your down payment is a gift.

BREAKING NEWS: HIGHLIGHTS ONLY! Homebuyer Tax Credit Set to be Extended and Expanded!

noreply@blogger.com (Peggy Hoag) — Thu, 05 Nov 2009 22:50:00 +0000

Earlier this week, the U.S. Senate unanimously passed an extension and expansion of the homebuyer tax credit. This morning, the House of Representatives approved the agreement reached in the Senate by a vote of 403-12. The bill has now passed both chambers and is awaiting the President's signature, which could be as early as tomorrow!

Thank you all for helping mobilize REALTORS in Oregon as the entire Oregon Congressional delegation voted in favor of this vital measure for the housing market.

Below is a summary of the new modifications in the extension and expansion of the tax credit:

1) The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010.

2) A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

3) Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.

4) Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.

BREAKING NEWS: Congress Passes Homebuyer Tax Credit Expansion

noreply@blogger.com (Peggy Hoag) — Thu, 05 Nov 2009 21:13:00 +0000

RISMEDIA, November 6, 2009 - After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.
The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

In the House debate, Speaker Nancy Pelosi (D-Calif.) took the floor to say the homebuyer tax credit was helping a new generation of Americans live out their dream of homeownership and financial independence. Debate on the homebuyer credit was overwhelmingly positive and the legislation passed 403 to 12.

Rummage Sale Time!! Catlin Gabel Big Sale at Expo Center. STARTS TODAY!

noreply@blogger.com (Peggy Hoag) — Thu, 05 Nov 2009 18:22:00 +0000

Rummage Sale Time!! Catlin Gabel Big Sale at Expo Center Submitted by Natali Marmion on Thu, 2009-11-05 06:58

This is it! If you've never been, or you look forward to it each and every year - Get out to this years Rummage Sale, at the Expo Center.

If you haven't heard, this will be the last one. The 65 year tradition is ending.

This has been such fun, and important part of our community - and especially, the Catlin Gabel School community. The funds have always gone towards raising money for finanial aid for students at the school, in Portland.

12,000 volunteer hours, from parents, alumni, students and teachers go into pulling this event off.

There are such great deals; clothing, furiture, jewelry, shoes, pet supplies, outdoor goods, holiday decorations and let me tell you - THE BEST deal on kids toys (especially legos!) around!

Come out - it's starts today (Thursday, November 5th), and runs through the weekend.

Senate Clears Homebuyer Tax Credit Extension, May Pass as Early as This Week.

noreply@blogger.com (Peggy Hoag) — Thu, 05 Nov 2009 17:11:00 +0000

RISMEDIA, November 5, 2009 - After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don't have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. "It's only for a primary residence," said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. "In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit," said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

Highly allergic to cats and the home you want to buy has a cat in residence. What can you do?

noreply@blogger.com (Peggy Hoag) — Thu, 05 Nov 2009 17:04:00 +0000

It takes about 20 weeks for cat allergens to dissipate to the level of a home without a cat. Vacuum all carpets using a vac with a hepa filter. Wipe down the walls with Nature's Miracle (found at Pet's Mart) or Allercat (a product by Allerpet that neutralizes pet dander). Clean the air filters in the heating and cooling systems. An Eco Quest air cleaner is another good option.

What if my current home sells before I find my next home?

noreply@blogger.com (Peggy Hoag) — Tue, 03 Nov 2009 19:48:00 +0000

It is most people's desire to move directly from their current home into their new home. Sometimes this is simply not possible. Each situation is unique. It is generally best to view this as a short-term inconvenience in exchange for the long-term satisfaction of finding the optimal home for you and your family.

Some of the strategies to consider in these situations are:

A potential lease back with the buyer of your home.
Use of large portable storage containers to avoid the double move of your possessions.
Solutions provided by full service movers.
Extended stay hotels for short term gaps in housing.
Corporate apartments for slightly longer term - many are furnished to avoid a double move of your furniture.
Staying with friends or family.

What are closing costs?

noreply@blogger.com (Peggy Hoag) — Sun, 01 Nov 2009 23:44:00 +0000

Closing costs are charges associated with selling and or purchasing a home.
The largest portion of closing fees when selling a home are the commissions incurred when hiring representation and marketing. When selling a home, a large sum of money is being invested by the real estate broker. The commissions will provide the resources to ensure your home is marketed to optimize the price you will net out of the home sale. These costs include paying a competitive commission to the buyer's agent, marketing campaigns, flyers and signage.
The largest portion of closing fees when purchasing a home are incurred in conjunction with obtaining financing. When buying a home, a large sum of money is being invested by the lender. There are costs incurred to ensure the investment is secure. These costs include a credit report, underwriting, appraising the property, processing the loan and title insurance. Some fees you would incur even if you were paying cash for the home, such as the escrow and recording fees.

Senators OK homebuyer tax credit extension ...

noreply@blogger.com (Peggy Hoag) — Thu, 29 Oct 2009 17:23:00 +0000

Set to expire at end of November, plan will remain until end of April.
The Associated Press updated 3:56 p.m. PT, Wed., Oct . 28, 2009

WASHINGTON - Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.

Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.

Majority Democrats have refused to add the amendments.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Today's Market Overview....

noreply@blogger.com (Peggy Hoag) — Wed, 28 Oct 2009 18:12:00 +0000

Rates are continuing yesterday's rally, this time on weakness in equities due to slip in home sales....

New Home Sales dropped 3.6 in September....economists were expecting a rise for last month....

Also a report showed that weekly mortgage applications dropped for the 3rd week in a row....

Durable goods rose 1% last month, investors shrugged it off as versus last year we are down 24%....

Debate on the home buyer tax credit is heating up as we near the end of November deadline....will it be extended for all of 2010? Will there be a step up credit? Will it have a phase out? We should all find out sometime within the next ten days what we will be looking at....

GMAC is back at the table, asking for another infusion of cash from the Fed....

Yesterday's rally was after strong results of the 2 year note auction....

MBS Rates have settled into a better range with yesterday and today's auction....love to see price changes for the better!

Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit....

noreply@blogger.com (Peggy Hoag) — Wed, 28 Oct 2009 17:56:00 +0000

Daily Real Estate News - October 28, 2009

Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed - not closed by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

The credit would be cut nearly 10 percent to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)

Portland Rated #3 on Forbes List of Safest Cities in America!

noreply@blogger.com (Peggy Hoag) — Tue, 27 Oct 2009 23:38:00 +0000

Forbes calculates this is using four categories:
1. Workplace fatalitites.
2. Crime rate.
3. Traffic related deaths.
4. Natural disaster risk.

The other cities that were in the Forbes' safest city top five were: Minneapolis, Milwaukee Boston and Seattle.