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Housings Weak Recovery: Lets Follow The Money

Quarterly reports are out. NAR, Case Shiller, Consumer Confidence reports all indicate that the housing recovery is faltering to flat. Much of the Govt supports will be slowly exiting as the Fed tests the normal functions of an economy replace Federal aid.ResidentialCase Shiller and NAR reports show continued weakness and everyone is wondering whether the recovery is waning. Case Shiller notes that the rate of decline in home prices slowed in October from the previous month, and prices remain flat after the spring and summer gains. Home price Indices of its its 10-city and 20-city composite indices declined 6.4% and 7.3%, putting home prices at 2003 levels. A flat report is not as bad as much of the last two years, but some Govt programs are being phased out.NAR site points out that on a month-to -month basis,only seven of the 20 cities showed improvement. NARs data for November showed prices down 4.3% year-over-year. Foreclosures continue to be the problem, making up 30% of the third quarter’s home purchase.Moodys points out that there are 3 million more homes in the pipe and that another 3 million are 30-60 days late. These homes are in a foreclosure pattern. New Home Sales: The government reported that sales of new homes dropped a sharp 11.3 percent, an indication that supply is still greater than demand.ApartmentsThe apartment market is showing signs of improvement, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions. Although the survey still indicates higher vacancies and lower rents, we see increased sales activity and greater availability of debt and equity capital compared with three months ago. Apartments have long been considered the better investment, partly because there is financing available and they didnt participate in the building boom of single family homesFollow The MoneyThe American Recovery and Investment Act of 2009Will pump more economic stimulus money into federally subsidized apartment units, while HUD’s budget proposal for next year seeks another $1.8 billion for construction of rental housing.GreenHUD and the U.S. Department of Energy are working together to offer more financial incentives for owners to retrofit properties for energy efficiency. Another economic stimulus plan enacted earlier this year provided funds for green retrofits. Larger property owners of commercial buildings including apartment complexes whereconservation of energy had the greatest impact. Hopefully, some of this money will trickle down to smaller owners.Fannie and FreddieCongress had placed a cap on spending of $200 billion dollars on each. On Christmas eve, Obama lifted the cap through 2012, giving the two quasi public institutions a blank check. I think this points very clearly to the next big wave of foreclosure that will stem from the Alt A and commercial mortgage recasts that will be coming due between now and 2012. A blank check (read big money problems) is whats next.The Stock MarketREITSThe Dow Jones Equity All REIT Total Return Index is up 31% this year, reversing a 38% decline in 2008, beating the S&P 500 by 25%. Given all the flat to downright ugly news still coming out it seems counter intuitive that real estate funds would be doing so well.They have been raising money issuing new shares and selling property whenever they can. In short, they have been raising money for whats expected to be a generational opportunity in good properties coming on the market at great prices. The ishares industrial/office and retail REITS are up 10.7% and 11.2% respectively in November/December alone. Even mortgage REITS are up 3.8% for the same period. Heres what they are looking at...Real Estate RubbleBloomberg reports that commercial property prices have fallen by 30 percent to 50 percent wiping out the equity in most debt financed real estate deals since 2005. This equals as much as 54 percent of the $1.4 trillion in loans that will come due in four years, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC (via Bloomberg News).Mr. Zisler goes on to say that much of the debt is likely worth about 50 percent of par. Many banks will end up insolvent as they reduce the value of their holdings, he wrote, adding that regional and community lenders are especially vulnerable.Stock markets are forward looking mechanisms and the REITS are looking passed the problem to great future buying opportunities. If the banks are holding so much bad paper, then it will be taxpayer money (those blank checks) and private investment money (REITs) likely final owners of all this real estate rubble. I know that investors will cherry pick and to drive hard deals to profit. I wonder if that leaves us, the taxpayers, to buy whats left.... Its all in the oversightThanks for Readingwww.yourpropertypath.comRelated ArticlesNAR: Existing Home Sales ReportShould You Stop Paying Your MortgageStock Market Views On The Housing RecoveryThe Coming Mortgage Debt Reduction Programs
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Foreign Real Estate Investors Return To The Market

The 17th annual survey shows strong Interest In US Real Estate.1. Foreign real estate lenders say they plan to increase lending by 58% in the U.S. in 2009.2. Equity investors plan to increase investment activity by 40 percent globally and by 73% in the U.S. according to the results of the 17th annual AFIRE surveyPreferencesD.C. trumps New York as the top global city for foreign investment. London and New York were second and third position for foreign investment interest. Five of the top ten cities were American and the U.S. was ranked as the country with the most opportunity for capital appreciation.US Real Estate TrendsOur system certainly can surprise, but politically, we are very stable. There is a great deal of faith in our ability to adjust and change. AFIRE members surveyed find the U.S. continues to provide both the most stable and secure real estate investment environment and the best opportunity for capital appreciation. see chart hereThis year, foreign investors are eying the multi family sector, followed by offices, industrial, retail, and hotel properties. US property is showing signs of an approaching price equilibrium and the dollars decline has made real estate even cheaper for foreign investors. Fed assurances that interest rates will remain low until a full blown recovery virtually assures an inexpensive dollar and once in a generation opportunity for foreign investment.NAR reports International investors bought 154,000 homes and condos in the 12-month period ending in May, down nearly 10% from 170,000 for the same period a year earlier.But Since June, the dollar has tumbled by 9 to 11% against currencies like the Japanese yen, the Euro and the Canadian dollar. Florida leads the country accounting for 25% of foreign purchases, followed by California, Texas, and Arizona.(via AFIRE)Green MattersWhen asked to what extent a buildings green attributes influenced their decision to purchase a property, 11 percent said significantly so, and 60 percent said somewhat so. In almost the exact same percentages, investors said that green attributes were worth a greater rental premium. This was the first survey in which these two questions were asked. (Via AFIRE)Thanks for Readingwww.yourpropertypath.com" target="_blank">www.yourpropertypath.comRecent ArticlesNAR Report Third QuarterThe official figures indicate recession has ended
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Obama Extends the Home Buyers Tax Credit

The home buyers' tax credit has been extended to April 30, 2010. Obama approved the extension as part of a $24 billion economic stimulus bill.The housing tax creditQualifiersThe measure limits the purchase price of the home to $800,000.It also imposes income caps so that people who make more than $125,000 annually and couples who make more than $225,000 would not be eligible for a refund.Anyone who collects the tax credit but sells their home within three years of buying it must return the refund.Current homeowners who are buying a new primary residence would be eligible for a $6,500 tax credit starting Dec. 1 if they owned their home for five consecutive years in the previous eight.Military families who have been deployed overseas for 90 days or more in 2008 or 2009, would have until April 30, 2011 to sign a contract.The program is estimated at $11 billionDouble Bubble TroubleDr Shiller, co-developer of the Case Shiller home price index and Yale economist points out that the price recovery of the last few months is the sharpest snap back he has ever seen. he is concerned that that in supporting a real estate recovery we may again be fueling a bubble.NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFannie and Freddie: And How We Got to Own it AllEnergy Efficient MortgagesRelocation Tips
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Walking Away: Fair or Unfair?

Interesting article about a research by an associate law professor at ASU whose name is Brent White. According to his research not enough people are walking from their underwater home due to restrains and marketing by lenders scaring people about their credits. He advocates that mortgages should not be reported to credit bureau so the homeowners could have more leverage in negotiating a loan modification with their lenders. He states that "It's unfair that responsible homeowners, who bet on the housing market just like lenders, are bearing the burden of the meltdown". Fair or unfair: what's your take?
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Three F words for Home Buyers!

Although it may seem overwhelming at first, the home buying process can be simplified in three easy steps. However, one two three is boring so let me explain with three F words. 1. Finance: the first step is to seek financial advice from a lender. First you must find a lender whom you trust and desire to work with throughout the complete transaction. Changing boats in the middle of the stream is possible but not suggested as it adds complications and stress. Find out how good your credit is and if it is not .....what you need to do to bring it up to par. Find out not only how much your lender is willing to finance for you and how much money you will need to bring to the (closing) table. Factor in the interest rate and points you are being offered. Learn what your payment will be; know that the lender is likely quoting PI (principle and interest). Calculate an additional $150-200 per month for TI (taxes and Insurance). Arming yourself with the knowledge of the strength of your buying power allows you to continue the endeavor with confidence. 2. Find the home of your dreams/desire. Find the home most suitable to your needs and taste. Elicit the assistance of a REALTOR ® to enable you to expand your search, access your choices, compare recent values of similar properties and to walk you through the transaction. Commit yourself to a Buyer/Broker agreement if you want the agent to work in your behalf and act as your advocate. 3. Finally when you are certain you've found what you want....exactly what you've been seeking or even beyond what you thought, it is time to make an offer. You and your REALTOR ® will work up the offer with what you plan to bring to the table and what you are asking of the seller. In Arizona this is done on a purchase contract which becomes legally binding if the seller signs accepting your proposal. However, be prepared for the seller to counter your offer and the reality of a possible negotiation process. When both parties agree, it becomes time for the buyer to begin the process of becoming a homeowner with inspections and plans for the pending closing of the transaction and moving. This is the time to start packing! In Arizona ownership occurs at recordation which is within three days after the signing. This will be the time to take possession. Keep in close contact with your REALTOR ® throughout the process as the agent will guide you through the time lines.
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Loan Modification For Unemployed Workers

It came out unnotice today a proposal from HOPE NOW Alliance to consider the benefits received by an unemployed worker to be used to determine eligibility for a loan modification under the Making Home Affordable program (HAMP). The process would be streamlined with the several government agencies to verify the benefits. With unemployment that will rise to double digits, this could be a major bump to the recovery. However what will happen once the benefits are over and the homeowner has not found a job yet?
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Motivated Buyer

No doubt this has happened to you more than once but it is my first experience.I have been networking with several lenders doing funding expo's and first timehome buyer workshops. I was pleasantly surprised this week when I was givena lead from one of them. Her LSR was complete and she was searching for arealtor being dissatisfied with her prior agent. She'd been shown the only propertyshe wanted and needed to see it again and most likely make an offer.Her prior agent said it was not worth either her or the agent's time to write an offeras it would be a back up offer and it was a short sale 'possibility' (ie: not yet lenderapproved). Naturally I was willling to assist her and I asked her if she'd signed aBuyer/Broker agreement and she said she had not. I wanted to ensure she hadn'tas if the transaction did go through there was no reason to ask for trouble. At anyrate we saw the property and we did write an offer for her. She also signed aBuyer/Broker agreement to work with me exclusively through the end March 2010.Why is this important? She is obviously a motivated buyer and there is a greatpossibility she will not obtain the property she has her eye on. However, if shedoesn't I am the agent ready, willling, able and signed on to work with her. BTW,she is renting and her lease expires the end of November and she can only gomonth to month for 90 days. Sweet!
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The race is on to get FTHBs in contract....Negotiations continue for extension. What do you think? Will they extend this successful program?Any thoughts on why the Gov would end this type of insentive just as real estate is heading into the winter months which are slower for most areas outside the Southern states?Anticipated home sales have increased for seven straight months, the longest upward run since the National Association of Realtors (NAR) began its pending sales index series back in 2001, and now at its highest level since March 2007.NAR said Thursday that its forward-looking measurement of closed sales on existing-homes, which is based on contracts signed in August, rose 6.4 percent from July’s reading and is 12.4 percent above this time last year.Lawrence Yun, NAR’s chief economist, cautioned though, that not all contracts are turning into closed sales within the expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” Yun said.Yun agrees with many other market observers that first-time buyers are rushing to put pen to paper to beat the deadline for the $8,000 tax credit, which expires at the end of next month. This run could very easily result in inflated pending sales numbers that don’t make it to the closing desk in time.Prospective homeowners in the western region of the country are the most eager to sign the dotted line, where distressed assets and plummeting property values make for extremely attractive deals. The pending sales index for the West surged 16.0 percent in NAR’s latest study.In the northeastern states, anticipated sales jumped 8.2 percent. In the Midwest the index rose 3.1 percent, and in the southern part of the country, pending home sales increased 0.8 percent.“Perhaps the real question,” Yun said, “is how many transactions are being delayed in the pipeline, and how many are being cancelled?”Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy.”
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The government's First-Time Home Buyer Tax Credit program expires November 30, 2009 -- a scant 60 days from today (10/1/2009).Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.This is especially true for purchases involving short sales and foreclosures.Congress passed the First-Time Homebuyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:* Buyer may not have owned a "main home" in the past 36 months* The home may not be purchased from a parent, spouse, or child* Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filersThe credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don't forget -- the First-Time Home Buyer Tax Credit is a true tax credit. It's not a deduction.This means that a tax filer who claims the full $8,000 and whose "normal" tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.If you can't close by November 30, 2009, though, you can't claim the credit.The clock is ticking. If you're planning to use the First-Time Home Buyer Tax Credit, the time to act is now.
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A nationwide rise in homeowners’ “negative equity” is convincing more people to walk out on their mortgages, even if they have favorable credit ratings and can afford to pay their loan, according to recent studies.Two reports – one by researchers at Northwestern University and two other colleges, the other by the national credit bureau Experian and the consulting firm Oliver Wyman – are offering a clearer picture of “strategic defaultees” than has been previously available.According to Experian and Wyman, numbers of strategic defaults are far greater than you might expect. Nearly 600,000 borrowers nationwide fell into this category in 2008, more than double the number in the previous year. That number also represents 18 percent of all serious delinquencies from last year.So what kind of people turn in the keys and walk out on their homes, even when they can pay the mortgage? It’s not who you think – not entirely, anyway.The Experian report looked at 24 million U.S. credit records and found that borrowers with the highest credit ratings are 50 percent likelier to strategically default than lower-rated homeowners. The defaultees often have no adverse credit history, going from a record of perfect payments to no mortgage payments at all.It’s not longtime homeowners; the Northwestern report said borrowers who bought more than five years ago were less likely to default. Surprisingly, though, “young people” don’t account for that many walkouts, either. “The young are more dependent on the loans market and thus face higher reputation costs from defaulting,” the report says.Above all, though, the studies agree that negative equity – being severely “underwater” in a mortgage – is the biggest factor in strategic defaults. “The homeowners who walk away know full well they are damaging their credit records, but are making a calculated decision that sticking it out over the long-term would be worse,” writes Boston Globe real estate reporter Scott Van Voorhis.Not all underwater borrowers are equal, however. The Northwestern study says homeowners never walk out if their negative equity totals less than 10 percent of the home’s value. Once that shortfall reaches 50 percent, though, a significant number of borrowers will default strategically.The Experian report agrees. Strategic defaults are much higher in boom-and-bust markets with jumbo loans, like California – where walkouts have risen 6800 percent since 2005 – and Florida, where they’re up 4500 percent. (By contrast, walkouts nationwide rose 9 times since 2005.)There is one upside in the statistics: According to the Northwestern report, moral sensibilities keep the walkout numbers lower than they might be otherwise. Eighty percent of borrowers “think it is morally wrong to do a strategic default,” and even “amoral people can choose not to default when it is in their narrow economic interests to do so because of the social costs this decision entails.”But as unemployment and foreclosure inventories continue to rise, it remains to be seen just how much of a deterrent the “social costs” of strategic default will remain.
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Freddie Mac has launched an aggressive, proactive campaign to help troubled borrowers modify their home loans under the federal government’s mortgage relief program.The GSE said Tuesday that it has hired Titanium Solutions, Inc., a homeowner contacting and counseling firm based in Salt Lake City, Utah, to knock on the doors of delinquent borrowers and obtain missing documentation and complete applications needed to begin their three-month trial payment periods for Home Affordable Modifications under President Obama’s Making Home Affordable program.Titanium Solutions will target late-paying borrowers with Freddie Mac-owned mortgages who have not returned letters or phone calls sent by their servicers, or who need to provide additional information to take advantage of the federal program. Titanium will also help those borrowers who have started their trial periods complete the documentation process to enable them to be converted into final modifications, Freddie Mac explained in a corporate statement.“By meeting with our borrowers, one on one, in their homes, Titanium Solutions can help them overcome the roadblocks keeping them from starting their Home Affordable Modification trial periods,” said Ingrid Beckles, SVP of default asset management at Freddie Mac.To minimize potential fraud, Beckles said Titanium Solutions representatives will not accept mortgage payments or any other money from borrowers. Representatives will also carry a copy of their servicers’ solicitation letter the borrower initially received, which includes unique information about the mortgage loan.Titanium Solutions, Inc. is the newest piece of Freddie Mac’s multi-pronged effort to help borrowers take advantage of the administration’s Making Home Affordable program.The GSE has also placed program experts at servicers across the country, works one-on-one with borrowers at local events organized by the Treasury Department, and recently hired Home Retention Services, a wholly owned subsidiary of Stewart Lender Services, Inc., to ease backlogs at several servicers by processing applications from delinquent borrowers with Freddie Mac mortgages.
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The $8000 tax credit is a nice perk for first-time homebuyers. In my opinion, new Buyers should look at it as a perk, not as an incentive:1) Qualify for a home based on solid income, a certain level of confidence in job security, and ability to repay for years to come.2) Find a nice property that you don’t have to sell for at least 5 years, better if you can keep it for 10 years or more, possibly as a rental later on.3) Don’t let the pending deadline for free money lure you into a dump! First of all, market swings can wipe out that $8000 in a flash, even if you are buying a $150,000 property. Second of all, a dump doesn’t need the market to help wipe out that $8000 of free money. A dump can do it all by itself. See my blog “Top 10 Ways to Know Your Buying A Dump.”In certain locations there is a shortage of inventory and a feeding frenzy among first-time Buyers trying to beat the clock. Meanwhile cash investors are snatching up the best properties causing first-timers to battle for scraps.Yes, the $8000 tax credit is a nice perk. If you buy for all the right reasons, the credit is gravy. But buying a dog pile to get $8000 today and risk your future just makes no sense. Some times renting makes more sense. (OK now you can officially declare me the worst real estate salesperson ever.)For all its encouragement and stimulus, the government doesn’t even want you to buy a dump. Last I heard, they have not announced Cash-for-Clunkers Homes, and you don’t want to be calling Marilyn Mock of the Foreclosure Angel Foundation in 2011.Let the professional investors deal with risk. You too can be a pro some day if you make the right moves today.
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$8000 Homebuyer Tax Credit

National Association of Realtors Chief Economist Lawrence Yun said existing home sales will rise through the fourth quarter, but that the end of a federal tax credit that gives first-time homebuyers $8,000 will affect that pace if it expires in November. As per [FAR and Palm Beach Post]. I agree what is your opinion on the first-time homebuyers tax credit? I think they should leave it into play for another 6 - 12 months.
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It never REALLY belonged to you!

I am astounded at the destruction and mutilation discovered in properties abandoned after foreclosure! Where did the current mentality of homeowners/renters come from in thinking it is their prerogative/privilege to destroy/steal or damage property they vacate? Everyone is aware that renters are 'leasing' property from the owner and that owners require security/cleaning deposits. However, I have spoken to landlords who've had their property damaged or destroyed beyond the limit of the deposit to include arson! Additionally, homeowners who become thieves of destruction to the property they have lost to foreclosure abound. They apparently do not realize they are actually tenants of the bank who holds their loan. They do not yet own this property until the loan is paid in full. Their down payment was just that: a payment they put down towards the repayment of the ENTIRE loan in the amount to which they agreed to pay to purchase the property. Lest we forget, this agreement was in the form of a legally binding contract. Perhaps more defaultees should be prosecuted for default or destruction. If people keep defrauding and defacing it may result in the banks requiring we pay for a loan for thirty years PRIOR to taking possession! Wouldn't that be a kick in the you know what!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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Why I like Lookie Lou's!

There are many reasons why I like and respect Lookie Lou's. If you've ever sat at an open house for two hours or more without traffic you will understand my first reason. With all the preparation given to arrange and set up an open house it is disheartening if no one stops in. I for one do not want to eat all my own cookies! Nor do I want my sellers to think nary a soul was interested in their charming, darling, cozy home.Au Contraire! I am there for a reason and that reason is YOU! Neighbors, curious George's, inquiring minds come one come all. I want to tell you about this home and show you it's features. Yes! That is my primary reason for having an open house. I also want to meet new people. I cannot be successful in real estate by talking to only a handful of people I know. I want to broaden my horizons and reach out to whomever is interested in discussing my passion for real estate. Consider me to be an artist in an art gallery. I will gladly discuss my work as well as engage in any discussion regarding art as it is my passion!Additionally, Lookie Lou's ask questions. Therefore we can engage in a conversation which typically evolves around, you guessed it, my passion and reason for being there.....real estate. This is a golden opportunity to 'feel the pulse' of someone who is interested but wary of the current market status. It is also an opportunity to dispel myths or mythical thinking. More importantly, it is a time to make a connection with someone new by discussing their concerns and providing access to information that may make them less concerned. It is also a time to delve into whom they may know who needs to sell or purchase a home. It is a time for me to introduce myself and my service to someone in the community who may not otherwise have met me nor I them. Think of it as a way of branding as my name needs to be in your thoughts when you or someone you know needs the services I provide.Yes, I am there holding this home open as it is on the market for sale. Certainly, it is my goal to sell it for my client. I will work hard to market it this way and any other way to fulfill their need and my responsibility to them. Additionally, I also want to meet you, whomever you are. Simply put......we need to connect. You may need some information I have and you may ask me for information I don't have but need to research. You may need my services someday or you may provide a service I need. You may know someone who needs my services or you just may know someone who wants the home I am holding open. Welcome to my open house Lookie Lou! Have a cookie and punch and let's chit chat while I show you this beautiful home for sale. We may not live next door to one another but we can certainly act like neighbors!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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Time is of the essence!

I truly like this phrase! It speaks for itself doesn't it? I think so and it is so very pertinent when it comes to the current first time home buyers tax credit which expires at the end of November. In order to take advantage of this credit the transaction has to close/record before December 1, 2009. Since escrow dealings can take 30-45 days that means the transaction needs to be negotiated/accepted within the next sixty days. Not only is finding the right property time consuming but keep in mind you need to find the right real estate professional to assist you, the right lender and property inspectors. You will need to research details of the property; the inspections should include at the very least a termite and property inspector. If you or anyone you know is planning to take advantage of this opportunity the time to act is now!
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Low-End Sales Rocket in California

Once again misinformation hitting the media! What this article doesn't say is that inventory in California has decreased primarily due to lack of new foreclosures coming on the market. Like most REO brokers in California I have watched my inventory shrink month after month as moratoriums from various institutions have worked themselves through fruition. In addition the banks have been holding back inventory trying to change the Mark to Market valuation system. A quick look at the mls will tell you there is just nothing to sell at this point. Watch the reported inventory numbers for August. It should be off the charts.Michael HowardXcel Reowww.xcelreo.comwww.xcelinvestments.comMay 29, 2009With almost a 50% increase in year-over-year sales, the inventory of unsold existing single-family homes for sale in California has been cut in half, from a 9.8 months' supply in April 2008 to 4.6 months' supply this April, the state's Realtors reported. However, while sales were up 49.2% to a seasonally adjusted rate of 540,360 — the eighth straight month above the 500,000 level — the median price of houses sold in the month declined by more than a third, largely because the majority of sales were at the low-end of the market. "Inventory levels for homes in the under $500,000 segment shrank to nearly three months in April, compared with almost 10 months a year ago, while unsold inventory in the more than $1 million segment rose to approximately 17 months, compared with roughly 10 months in April 2008," says California Association of Realtors President James Liptak. "The dramatic difference in inventory exemplifies how the low end of the market is attracting more first-time buyers and investors, creating a shortage of distressed properties for sale." The median price of existing homes sold in the month was $256,700, a 36.5 percent decrease from the revised $404,470 a year ago. But it was 1.4% greater than March's $253,040 median price. CAR's figures are based on data collected from more than 90 local Realtor associations statewide.
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That is the basic premise we discussed on David Patterson's, radio show last weekend. His summary says, "This week's Expert Guest on The David Patterson Radio Show was ActiveRain Veteran, Author & CA Broker Regina P. Brown. Her passion is helping families create a legacy through financial education. She offers real estate seminars and private buyer consultations. During this podcast, Regina discussed..."How to Evaluate a Good Neighborhood when Buying a House"It's important to choose the highest quality neighborhood when buying a house. It's not only good for you and your family, but you will realize the highest increase of appreciation. In other words, your property value will rise faster in a better neighborhood." - Regina P. Brown, San Luis Obispo, CAHome buyers don't buy HOUSES. They buy NEIGHBORHOODS. In fact, neighborhoods are more important than individual houses. If you have a house for sale, and a prospective buyer drives down your street, and feels uncomfortable with the neighborhood atmosphere, they will keep driving. They won't even want to view the inside.Curb appeal does not apply only to 1 specific house. Think about it, what if you have a perfectly painted house and a neatly manicured lawn, but your next-door neighbor has a junkyard in his driveway that looks like Sanford & Son? That makes your house less desirable. So curb appeal applies to the entire street, and even the neighborhood.Have you ever looked at a photo of house on Realtor.com and it looks fabulous? And you think to yourself, WOW! What a great price for that top quality house, I've got to check out this great bargain. So you hop in your car and drive over to the house to view the outside. But when you drive down the street, you see abandoned houses, boarded-up windows, paint peeling, weeds 2 feet high, rusty cars without wheels in someone's driveway, ripped up furniture on porches... and then you understand why this otherwise nice house is priced so low. Because its value is influenced by the entire neighborhood's pride of ownership (or lack thereof).Listen to PART 1 of the radio show: http://davidpattersonshow.podbean.com/2009/05/03/the-david-patterson-show-podcast-may-3-2009-part-oneListen to PART 2 of the radio show: http://davidpattersonshow.podbean.com/2009/05/04/the-david-patterson-show-podcast-may-3-2009-part-2 On each page, scroll down to the section that says "Listen Now" and press the forward button. Okay, I know that I sound a little bit cheesy but it's all in good fun, right!ENJOY!Visit The David Patterson Show Blog to find out more about the RADIO show, live every Sunday mid-day. Or if you have a great topic, David is always looking for new guests on his weekly show!Regina P. BrownBroker, Realtor®, e-ProAuthor of eBook "Stop Foreclosure Fast: Solutions to Save your House"Author of forthcoming book, "Virtual Office Guide for Business Professionals: Work & Profit from Home"Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualofficeText copyright © 2009 R.P. Brown, All Rights Reserved
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In most cases the Fears Of Shrinking Industries, Your 401k and Real estate Investments go hand in hand. With the current state of job securities, massive lay offs and the fear of what to do next is most thought about and one of our biggest worries today. I recently read an article about a husband and father of two who had worked in his industry for well over 20 years, and was suddenly laid off and his 401k was reduced to nothing. He was facing his biggest fears of his life, what was he going to do, his family was depending on him. His wife a stay at home mom was forced to look for work and after 5 months she did find a part-time job in the retail industry for holiday shopping. The husband on the other case sought processional job counseling and after submitting application upon application he was actually spinning his wheels and going no where fast. He sought training in a new industry and this was the key. To this day he is getting back on track, he made an investment with the savings he had into real estate and he and his family are very happy that he did.We never think about our 401k's until it is too late. Many of us never thought to open it or have any idea about what we would do with it. Of course retirement has it's benefits, unfortunately in today's hard and trying economy most of us will not have the opportunity to retire from our industries. With shrinking industries we must take the first step to secure our futures. It is time to open your 401k pull out your money and put it to work for you unless you want to continue to work for your 401k. Don't wait until it you open your pay envelope to see the infamous 'PINK SLIP'I would like to introduce you to a few ideas i came across a few weeks ago. REO agents ace also become real estate Investors. The downloads I am including will introduce you to and fortify your beliefs and realistically show you how you can benefit from these free downloads and course materials. Within this link you will find many useful resources that you could incorporate in your current industry or pass on to someone you know with an interests in real estate.Free Web Bonus PackFree e-Book: How To Create Multiple Streams of Income Buying Homes in Nice Areas with Nothing Down!https://mfg.infusionsoft.com/go/FreeWebBonusPack/cdnsi/Ultimate Investors Boot CampLearn Multiple Ways to Buy Homes with Little or No Money at the Ultimate Investors Boot Camphttps://mfg.infusionsoft.com/go/UIB/cdnsi/
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