Unemployment up, consumer confidence down. Mortgage application statistics dues out this week – employments concerns and appraisal issues have taken some steam out of application activity. Thank you HVCC!

10 day forecast calls for rain over most of the 10 days. Have to be ready to film video for http://ping.fm/cJZYz if the sun shines!

Senate Bill S1230 supported by the National Association of Realtors and the Mortgage Bankers Association, proposes to replace the current $8,000 home buyer credit for 1st-time buyers, with a $15,000 home buyer credit for all buyers with no income limitations. If you support this, contact your legislative representatives and let them know!

Have Prices Hit Bottom? IAS 360 House Price Index reports that national home prices were flat in the month of May 2009 for the first time in a year.

05/29/2009 HUD Announcement Regarding $8,000 Tax Credit

Click the hyperlink below to read the HUD announcement regarding the use of the $8,000 tax credit at settlement toward the settlement costs for first time home buyers.

As with all financial decisions, be sure to consult with your financial and/or tax professional before making any decisions.

HUD Announcement

Financial Incentives and Uniform Process for Short Sales

May 14, 2009 – The Obama Administration acting upon the call from the National Association of Realtors, announced Financial Incentives and Uniform Process for Short Sales under its new Foreclosure Alternatives Program (FAP). The alternatives are meant for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program. The servicer may consider a short sale, or if that is not successful, a deed-in-lieu foreclosure.

Here are the details of FAP:

•  Borrowers (Homeowners).Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate. FAP may streamline the short sale process and may produce a higher percentage of successful short sale transactions and settlements.
• Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
• Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
• Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
• Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
• Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.
• No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP.
• Program Expiration. The program is in effect through 2012.
• DIL Option. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

The implementation of FAP may lead to a higher pecentage of successful short sales.

Preparing Your Home for Sale

There are lots of articles and TV shows discussing the merits of staging your home to help sell your home more quickly. The short story is that you need to make your home look like a model home or at least as close as you can. The rest of the story is that while staging your home is necessary, it is only part of what you need to do when selling your home.

In our DVD, Strategies for Selling Your Home, we cover many things that need to be done in order to sell you home for the best price and terms possible in the least amount of time possible. Among the those things that can be done, one of the most important is cleaning the home and removing any odors. Cleaning is the most economical and important thing that can be done. Go through the house with a critical eye and go back over areas that have already been cleaned and clean again if needed.

Break down your preparation into separate areas to make sure you don’t overlook anything. Make lists for each area of preparation you create, like one for landscaping, outside maintenance, flooring, kitchen, baths, basement, mechanicals, bedrooms, attic, etc. Resist the  impulse to store things in the basement, garage, attic or spare bedroom. Compromising one space with excess storage can ruin the effect of all of your efforts. If at all possible, rent storage and if that’s out of the budget, ask a relative if they have space you can use for a little while.

Remember, when you put your house up for sale, it becomes a product that your are selling. You need to keep that product ready to be shown at all times. Additionally, be prepared to allow your house shown at all times. Turning way showing opportunities can become a bad habit that may cost a sale. You never know which looker will be your buyer.

To get your copy of our DVD, Strategies for Selling Your Home, go online to the following retailers – Amazon.com; Target.com; Borders.com and ShowMeHowVideos.com.

New video posted on AnnapolisLandscape.tv

$8,000 1st-Time Home Buyer Tax Credit Details

$8,000 Tax Credit for First-Time Homebuyers:

The original Senate proposal was for a $15,000 tax credit for all purchases of homes. The new stimulus package contains an $8,000 tax credit restricted to first-time homebuyers. Here’s a breakdown of the legislation signed:

• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  

• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
  

• The tax credit is for first-time homebuyers only. (Cannot have owned a principal residence over the three years prior to purchase)
  Unlike the previous credit, the new tax credit does not have to be repaid. (There is a recapture clause for home’s sold within three years the entire amount of the credit is recaptured on the sale)
  

•  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The credit phases out for incomes above these levels.

Pricing Your Home – 9 Factors