First-Time Home Buyer Tax Credit

Here is a good informational page about the tax credit.

http://www.federalhousingtaxcredit.com/

Check it out.

Making Home Affordable Program - From US Dept of the Treasury

U.S. DEPARTMENT OF THE TREASURY

Washington

March 4, 2009

Making Home Affordable

Summary of Guidelines

Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.
The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments. The detailed guidelines (separate document) provide information on the following:

Eligibility and Verification

•Loans originated on or before January 1, 2009.
•First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
•All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
•Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
•Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
•Modifications can start from now until December 31, 2012; loans can be modified only once under the program.

Loan Modification Terms and Procedures

•Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.
• Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive
– meaning that the net present value of expected cash flow is greater in the modification scenario – the servicer must modify absent fraud or a contract prohibition.
• Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and redefault rate assumptions.
• Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).
• The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.
• The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner’s association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income.
• Servicers must enter into the program agreements with Treasury's financial agent on or before December 31, 2009.

Payments to Servicers, Lenders, and Responsible Borrowers

•The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.
•Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus "pay for success" fees on still-performing loans of $1,000 per year.
•Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.
•The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.
•The program will include incentives for extinguishing second liens on loans modified under this program.
•No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasury’s financial agent.
•Similar incentives will be paid for Hope for Homeowner refinances.

Transparency and Accountability

•Measures to prevent and detect fraud, such as documentation and audit requirements, will be central to the program.
•Servicers will be required to collect, maintain and transmit records for verification and compliance review, including borrower eligibility, underwriting, incentive payments, property verification, and other documentation.
•Freddie Mac will audit compliance.

Drew named Dad of the Month!

I was named Dad of the Month on the Dad's World Website - Check it out at http://dadsworld.com/dad-of-the-month/March2009-dotm.html

Buy in '09; Get '08 Federal Tax Credit

In case you weren't aware, the federal tax credit for new home purchasers can be claimed by eligible home buyers on their '08 tax returns, even though they are making the purchase in '09. This is one of several provisions that might help spur home sales this year, since people can get their credit much quicker than waiting to file their '09 returns next year. For more information on the tax credit provisions, go to www.federalhousingtaxcredit.com

An ounce of prevention

Measures to improve the safeguards in our homes and to reduce the possibility of water intrusion are all within reach.

Top Dozen Safety Suggestions
1) Make sure furnaces, fireplaces, wood-burning stoves, space heaters, and gas appliances are vented properly and inspected annually.
2) Regularly check smoke alarms – One per floor at a minimum and near sleeping areas. Have fire extinguishers in more than one area of your house.
3) Plan an escape route and make sure the windows and locks are operable.
4) Do not overload extension cords or use them improperly such as in garage door openers.
5) Please check your own chargers (cell phones, cameras, IPods) to make sure they are not over-heating. Apparently there are businesses that are importing chargers and batteries that are not UL approved, but marked as such, which are starting fires such as in our case.
6) Consider installing a CO2 detector. Only run generators outside, never in a “ventilated” open garage.
7) Use Ground Fault Circuit Interrupter (GFCI) plugs in kitchen and bathrooms near water service.
8) Adjust water temperature below 120 F to prevent scalding.
9) Consider installing safety handrails on staircases and in bathing areas, especially when seniors live in the home.
10) Repair lifting concrete cracks that could pose a tripping hazard and remove slippery moss from sidewalk areas.
11) Trim dead branches from trees that are close to your roof and parking areas.
12) Keep your gutters clean and drains clear of debris to prevent water from draining into your crawl space, or other areas that would cause damage to your property or your neighbors. Now that the earth is saturated from winter rains, it will flow more easily from one property to the next.

For a comprehensive list of additional steps you can take to prevent injuries in the home, go to http://www.homesafetycouncil.org/index.aspx

National Association of Realtors Opposes Removal of Mortgage Interest Deduction in Obama Budget Proposal

A letter from NAR President Charles McMillan -

- - - - - - - - - - - - - - - - -

You may have seen news reports about President Obama’s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.

As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.

As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.

This communication is the first part of our response, we will continue to update you as the situation and events warrant.

Sincerely,

Charles McMillan, 2009 NAR President

Help for homeowners w/ Wells Fargo Loans

If you know someone that is facing foreclosure, short sale, or needs payment restructuring with a Wells Fargo loan, here is the link to their informational page:

https://www.wellsfargo.com/jump/homeassist/index

This is for first or second mortgages with Wells Fargo as well as FHA loans with any lender.  There are contact numbers here, credit counseling services and general information for Wells clients in need of financial assistance.

Portland is Nation's #4 Housing Market - Forbes Magazine

Finally some good news.  Here’s a great article from Forbes Magazine that ranks Portland as the nation's 4^th best housing market.  Here’s the link to the article.

http://realestate.msn.com/article.aspx?cp-documentid=18080758&gt1=35000

Forbes Magazine 5 best housing markets:

1. New York
2. Washington DC
3. Charlotte, NC
4. Portland, OR
5. San Diego

Foreclosure Timeline

Here is a timely piece of information, an item of value that you can reference regarding Non-Judicial Foreclosure on a Deed of Trust:


Summary of Steps and Timeline
Non-Judicial Foreclosure Trust Deed

(Click Graphic to Enlarge)

Zillow published latest home value trends. Portland down 11.7%

Click here for the link:

http://www.zillow.com/reports/RealEstateMarketReports.htm?s_cid=emm-2007126BuzzQ4ReportReProNoCity-bab

Skillful Negotiations

Please enjoy the real estate tip included below. If you have any questions about this tip - or any other tips you may have heard elsewhere - please ask! There is no obligation and you'll hear back quickly!

Real Estate Tip:Skillful Negotiations

Negotiating the sale or purchase of a home is a highly creative endeavor that can be stressful at times. Even though the process is not usually an adversarial one, there are issues which may require a compromise from each party, such as the price, the date of possession, and the condition of the property at closing.

It helps to know why people are relocating. If a home is part of an estate, for example, it may evoke childhood memories and intense emotions for the person who is overseeing the sale. If the sellers are in the middle of a divorce, their mood will be different than someone who has just won the lottery and is moving to their dream home. Buyers who have been transferred and have to leave their dream home behind will feel differently from someone who feels that your home is their "ideal". One of a real estate agent's most important jobs is managing all of the relationships in the transaction. These situations don't often get really difficult, but when they do, agent's don't take it personally.

See Drew's Feature Properties: www.ePortlandOregon.com/myhomes.asp

Visit http://www.eportlandoregon.com/

or http://www.drewcoleman.com/

Know someone struggling to make their payments or facing foreclosure in Portland?

With the down economy in Portland, Oregon, many less than reputable companies have been popping up offering people "help" with their mortgage problems. Often, these companies will be given a retainer by the client, never to be heard from again.

Instead of contacting one of these companies, anyone anticipating problems making mortgage payments should seek legitimate free or low-cost help as soon as possible. Contact a housing counseling agency certified by the Department of Housing and Urban Development (www.hud.gov/foreclosure or 1-800-569-4287). Their agents can assess options and advise you in negotiating with the lender. Advice is also available at the Homeowner's Hope Hotline, at 1-888-995-4673. Another good source of help is the Institute for Foreclosure Legal Assistance, http://www.foreclosurelegalassistance.org/, which funds and trains groups nationwide that give subsidized legal representation to families facing foreclosure.

Portland took a $23 billion real estate hit in 2008

According to a new study from Zillow (http://www.zillow.com/reports/RealEstateMarketChartsAndMaps.htm?msa=Portland+Vancouver+Beaverton+OR+WA), Portland area homeowners took a $23 billion dollar hit in the form of lost equity in 2008. For more information on this loss, check out this great article from the Portland Business Journal:

http://www.bizjournals.com/portland/stories/2009/02/02/daily19.html?ana=from_rss

What did my house look like in 1925?

Since most of your homes weren't built at that time...probably the answer is a pile of dirt or trees but we are getting closer to having that information at our fingertips. Google's "Google Earth" application may not be able to do that yet, however they have added a large amount of historical and other data to their 5.0 release of the their popular application.

Read more here:

http://arstechnica.com/software/news/2009/02/hands-on-google-earth-50-goes-unda-da-sea-back-in-time.ars

Light Rail for the Portland 'Burbs

Today, the new Tri-Met WES (short for Westside Express Service) train begins service, adds an exciting new option for commuters in Washington and Clackamas counties. Connecting Wilsonville, Tualatin, Tigard and Beaverton, WES runs about every 30 minutes, Monday through Friday, during the morning and afternoon rush hour. Instead of sitting in traffic, you have your own “WES Time” to use however you like. Plus, you can enjoy free wireless internet and a smooth ride. Now, isn’t that a nice way to start your workday?

For more info visit:

http://trimet.org/wes/promo.htm