Mortgage rates Inch Up!

Rates went up this week by a small percentage. Should the rates continue to rise, your buying power decreases! Click on the title for the complete article. The time to purchase that home in NOW!

Pending Sales On Upward Trend!

Yet another signal now is the time to buy your home in the Tampa Bay area! Contact me for available properties! Click on headline for the rest of the article!

New Home Sales Jump!

Another bit of good news in the housing market here in the Tampa Bay area! I can help you with your new home purchase as well as with resale homes. Contact me for more information on homes in the area! Click on the title for the rest of the article!

Interest rates inch higher!

Interest rates are STILL at historical lows. Now is a GREAT time to purchase! Click on the headline to get the rest of the story!

Home sales up in December!

Everything is pointing in the right direction to get off the fence and purchase a home. Click on the title for the complete story, then contact me to purchase your next home!

Mortgage Rates Inch Lower

For the second week in a row, rates decreased slightly..... but how long will this last? Historically low interest rates make today a perfect day to purchase that home! Click on the title for the complete story!

Tampa Area in Top 10 Markets searched online!

Perhaps we are getting closer to recovery as three Florida markets are in the top 10 searched online. Tourism is picking up and more people are moving into Florida than relocating elsewhere. Now is a GREAT time to be purchasing that home in the Tampa Bay area!! Click on the title for the complete story!

First Time Homebuyer Credit Extension for Military and other Federal Employees

Perhaps it has been forgotten, but there are certain military personnel and other federal employees that qualify for the first time home buyer credit extension. Click on the title for the full article from the IRS.

Veterans Should Review Homebuying Benefits

It is always a good idea to review your benefits regarding home buying. There have been some changes recently that just might help. Click on the title to get the whole article from Military.com.

Mortgage Rates Rise for 5th Week!

Mortgage rates, while still at historic lows, rose for the 5th straight week. Click on headline for the complete article.

Florida Insurance Rates Continue to Rise

Click on title for the article.

Fewer Homeowners Underwater in 3rd Quarter

Still 45% of Florida homeowners are underwater, but had the largest decline. Click on headline for article.

Foreclosures taking longer!

BofA Sells off loans and Resumes Foreclosures

Florida's Existing Home, Condo Sales Rise in 4Q 2009!

NAR: 4Q existing-home sales surge in most states

ORLANDO, Fla., Feb. 11, 2010 – Sales of existing single-family homes in Florida rose 44 percent in fourth quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 43,926 existing homes sold statewide in 4Q 2009; during the same period the year before, a total of 30,610 existing homes sold. It marks the sixth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the fourth quarter rose 93 percent compared to the same time the previous year. This marks the fifth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The survey noted uncertainty over the tight credit market, foreclosures and the jobs outlook.

On the positive side, private investors – both foreign and domestic – are starting to “kick the tires” in many markets, said Timothy Becker, the center’s director. In addition, investor expectation for returns is starting to fall to more realistic levels, helping to close the spread between bidding and asking prices, he said.

“These developments bode well for the transaction market when quality properties start coming to the marketplace,” Becker added.

Eighteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $140,000 in the fourth quarter; a year earlier, it was $160,600 for a decrease of 13 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 16,255 units sold statewide for the quarter compared to 8,410 in 4Q 2008 for a 93 percent increase. The statewide existing-condo median sales price was $105,500 for the three-month period; in 4Q 2008, it was $136,600 for a decrease of 23 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.92 percent in 4Q 2009; one year earlier, it averaged 5.86 percent.

© 2010 Florida Realtors®

New Listing! South Bay Lakes

Lovely 1414sf 3/2/2 home in South Bay Lakes. No CDD fees, yet the community has a pool and playground for the residents. This home is sold in conjunction with the military HAP program and is listed at $105,000! Click on the title and it will take you to the listing for your review.

Military Sellers Reimbursed for Losses

WASHINGTON – Feb. 8, 2010 – Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell. The Department identified Florida as having the most home sellers who qualify for the program.

The Pentagon’s Housing Assistance Program now applies to:

• wounded service members relocating for treatment or medical retirement and survivors of those who have died while deployed
• military personnel and Defense Department civilians affected by the 2005 round of base closings, as a result of the Base Realignment and Closing initiative
• military personnel moving to a new base

Previously, applicants had to demonstrate that the closing of their base contributed to the decline of the area’s real estate market and a resulting loss in sales. That requirement has been waived under the expanded program.

As of Jan. 18, 2010, almost 4,000 eligible applicants for the expanded program have been identified and 429 claims have already been paid for a total $32.8 million, according to the Pentagon.

After Florida, the Defense Department says it also expects applications from California, Virginia and Georgia.

For more details about the program, including eligibility and limitations, download this PDF.
© 2010 Florida Realtors®

Tampa Bay Prices Unchanged, NOT Down!

Tampa, Florida
May 2009 Home Price Index
One-Month Change: 0.0%
One-Year Change From May 2008: -20.8%
Peak Month: July 2006
Source: S+P/Case-Shiller Home Price Index

Prices Rise for First Time Since 2006!

According to the latest S+P/Case-Shiller data, the 20-city index rose 0.5 percent from April to May, although it is still down 17.1 percent year over year from last May. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the index has now shown four consecutive months of improvement.

Pending Home Sales UP For Third Month!

WASHINGTON – June 2, 2009 – Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR chief economist. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West, the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.

NAR President Charles McMillan says there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans to buy down the interest rate or make a larger downpayment.”

NAR’s Housing Affordability Index (HAI) is in record territory. The index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability.

“In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” Yun says. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun says.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Details of FHA's $8K Downpayment Advance

WASHINGTON – May 29, 2009 – The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time homebuyers use a tax credit as part of a downpayment.

HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.

“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”

The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.

“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.

Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms. To read the complete overview in Mortgagee Letter 2009-15, go here.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Two Points!

The $8,000 first-time homebuyer tax credit has received a lot of attention lately, but it has also overshadowed another big reason to buy a home now: record-low interest rates.

In May, 30-year mortgage rates of 5 percent were widely available. That's down from January's already-low 5.8 percent, and two percentage points less than in August 2008.

How important is two points? On a $200,000 home, a buyer could save $257 per month ($3,084 per year) by buying now rather than last August. On a $200,000, 30-year fixed rate mortgage, the monthly payment difference is:

• 7 percent: $1,330 monthly (rates in August 2008)
• 6 percent: $1,199 monthly (rates in December 2008)
• 5 percent: $1,073 monthly (rates in May 2009)

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Home Sales UP!!!!!

Sales of existing single-family homes in Florida rose 25 percent in first quarter 2009 compared to the same period a year earlier, according to FAR - the third consecutive quarter for higher existing home sales. Statewide existing condo sales in the first quarter rose 19 percent compared to 1Q 2008. Nationally, NAR says sales of all housing types slipped in the first quarter.

Lakes Of Cristina New Listing!

This MacKay, former model, Grand Aruba floor plan has well over 2700sf of open living space, 5BR, 4BA, POOL and a THREE car garage! The home boasts custom molding, built-in wall unit that can house a large screened TV, wired for surround sound andsliders leading to the screened pool. The master bedroom has a walk-in closet, dual sinks and a coffee bar with small refrigerator. The Bonus Room (5th BR) comes complete with a full bath! The kitchen has plenty of light oak cabinetry, including 42" uppers, built-in desk, pantry, breakfast bar and more. There is plenty of room to entertain in this home and additional space is available out on the ample lanai. The large laundry area has a built-in ironing board. The home comes with hurrucane shutters that cover the lanai. There are many other features you will have to view to appreciate. The home is located in an excellent school district and is walking distance from Riverview High. The home's location allows an easy commute to Tampa and surrounding areas. This home has everything you want and more! Priced at $289,900!

Fast Fixes to Sell a Home!

It's not rocket science: Houses that look fresh and attractive sell faster than beat-up homes. Here are some cheap tricks from Money Magazine for boosting appeal:

• Buy a new mailbox, house numbers, doorbell and knocker: $200
• Green the grass with nitrogen-rich fertilizer: $50 to $200, depending on the lawn's size
• Edge and mulch flowerbeds: $300 to $600, depending on the number of beds
• Replace the bathroom faucet: $300
• Install beadboard over dated bathroom tile: $800 to $1,000
• New paint: $60 to $100 per room if homeowners do it themselves
• Replace switch plates and outlet covers: 50 cents each
• Install stone tile over existing Formica countertops: $500 to $1,000

Mortgage Interest Rates week ending 5/1/09

Rates on 30-year mortgages slid to an average of 4.78 percent this week, tying a record low and spurring refinancing activity as the housing market moves closer to bottom, according to Freddie Mac's weekly nationwide survey.

Home Buyer Tax Credit

If first-time homebuyers wait until November to sign a sales contract, it's probably too late to get the $8,000 tax credit. To qualify, buyers must CLOSE before Dec. 1 - a signed contract is not enough. New construction should be started by mid-summer to qualify.

Interest Rates for Week ending April 23, 2009

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 23, 2009, down from last week when it averaged 4.82 percent. Last year at this time, the 30-year FRM averaged 6.03 percent.

Existing Home Sales

Florida's existing home sales rose 30 percent in March, making it the seventh month in a row that sales activity was higher than year-ago levels, according to FAR's latest housing data. Statewide existing condo sales increased 25 percent over the same period; and last month's home and condo sales were higher than February's levels. NAR reported that national existing home sales - all housing types - fell 3 percent compared to February's activity.

Current Mortgage Rates

Rates on 30-year mortgages inched higher this week to 4.87 percent after two straight weeks of record lows, but still remained at attractive levels for borrowers looking to refinance their home loans.

More Good Housing News!

Second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states. Only the Western region saw a decline at 13.5 percent.

The ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.

Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.

Consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.

Both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains.

Positive Media Blips on U.S. Real Estate Market

Per MSN Money

Home prices rise 1.7%
Home prices in the U.S. rose an overall 1.7% in January from December, according to the Federal Housing Finance Agency -- the first monthly gain in a year. Prices were flat or up in eight of nine regions in January, with the Pacific states the only region showing a decline.Home prices are still down 6.3% from January 2008 and down 9.6% from peaking in April 2006.

Per API

February Existing Home Sales Rise By 5.1%
Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.

Per NY Times

Fed move drives mortgage rates below 5%
Less than a day after the Federal Reserve said it would double its purchases of mortgage debt, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point to well under 5 percent.

There is light at the end of the real estate tunnel.

Florida Home Sales Up for 6th Consecutive Month!

Florida's existing home sales rose 20 percent in February - the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to FAR. Statewide sales of existing condos increased 15 percent last month compared to the previous year; and February's statewide sales also were higher than January's figures in both the existing home and existing condo markets

Mortgage Help Site Launches!

The U.S. Treasury Department went live with its Making Home Affordable program this week, which aims to help homeowners refinance or modify their mortgages. The campaign includes a Web site at www.makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673. The federal government is targeting 9 million homeowners whose loans are held by Fannie Mae or Freddie Mac.

Mortgage Rates!

On the heels of the Federal Reserve's new effort to aid the housing market, rates on 30-year fixed-rate mortgages dropped this week to 4.98 percent, just shy of the record low of 4.96 percent reported in mid-January, according to Freddie Mac's weekly nationwide survey.

Federal Reserve Surprises Financial Markets!

Article provided by Michael Payette, M&I Bank.

Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.

Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.

But what does this mean and why do you care?

Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.

But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.

Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?

New Home Construction Logs Unexpected Gain!

Washington(AP) – March 17, 2009 – The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.Construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.

A Lot For A Little In Riverview!

New Listing in Moss Landing!

Welcome to 11138 Hartford Fern

Close to 3700sf in this 4BR, 2.5 Bath two story home with additional den and a loft. The kitchen boasts plenty of upgraded cabinetry with 42" uppers and crown molding. The ample master bedroom has a HUGE walk-in closet. The three secondary bedrooms are also large. There are plenty of windows allowing natural light to flow through the home and many of the windows have upgraded moldings. Most of the doors are upgraded, raised 6 panel and the laundry is upstairs convenient to all bedrooms. There is even extra storage under the stairs! The price is right for this home and is convenient to shopping, schools and the commute to Tampa and surrounding areas.

New Ruskin Listing!

Welcome to 1434 Delano Trent!

This well maintained 3/2/2 in Wellington North at Bay Park has upgrades other homes in the area do not have. The kitchen boasts granite counters, extra cabinetry, upgraded tile, center island, undermount stainless sinks, upgraded fixtures pantry and sliders to the screened porch addition. The living area has wood flooring and the open plan allows for flexibility in furniture placement and ease of entertaining. The large master bedroom has a walk-in closet and its own bath. It also has a door leading to the screened lanai. The home has an interior laundry room, plant shelves, linen closets and a coat closet near the front door. The home is close to shopping and the highways allowing for an easy commute to Sarasota, Bradenton, Brandon and other surrounding areas. The home is priced right to move at $110,000!! Come see this lovely home and make it yours!

Homebuyer Tax Credit Forms and Rules In Place

The Treasury Department has moved at record speed to implement one piece of the new American Recovery and Reinvestment Act of 2009 Act aka the stimulus act.
The Department and the Internal Revenue Service which will manage it announced on Wednesday that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.
The credit is available to homebuyers who purchase a home before December 1 of this year. In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.
The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.
The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.
For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.

The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually.
Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit.
Treasury Secretary Tim Geithner said in a press release from his department, "The expansion of the first-time home buyer tax break as part of the President's recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers. We view our economic recovery plan, our financial stability plan, and now this homeowner affordability plan as three legs of the same stool - an integrated whole that represents our immediate response to the current crisis."
Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.

More on Making Home Affordable

Making Home Affordable



Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The 'Making Home Affordable' program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances.



As with most legislation of this type, some of the details are still pending and subject to further clarification – but I would invite you to call me so we can begin to discuss how they might benefit you.



There are two important elements of this program:
One part of the program will be available to 4 to 5 million homeowners who have a solid payment history on an existing home loan owned by Fannie Mae or Freddie Mac. Many of these homeowners have been unable to refi and take advantage of lower interest rates because their homes have lost value. This plan allows for rate and term refis up to a 105% loan-to-value, which will help many homeowners take advantage of today's lower rates or refinance an adjustable-rate home loan into a more stable product, such as a 30-year fixed rate loan.



To qualify, the home must be your primary residence and have a loan balance not exceeding $729,750. While there are still a few unknowns in the mix, this program will help a large number of homeowners cut their monthly expenses and benefit from the lower home loan rates available today.



The second part of the program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly home loan payments. This program lets home loan servicers modify eligible loans for those who have experienced financial hardship. The plan is designed to help these at-risk borrowers decrease the payment amount on their existing loan.



Help Is Here



The housing and job markets continue to be hard hit by the contraction in the economy. But combined with earlier measures, such as the $8,000 tax credit for first time home buyers, the Making Home Affordable program may actually have some legs to help the housing market and economy overall.



Regardless of which opportunity may be right for you – the best first move is to pick up the phone and let's start talking. Contact Michael Payette at M&I Bank 813-334-8412 or via email at Michael.Payette@micorp.com and let him know you saw this here on the blog!

Making Home Affordable Program

The US Treasury today released details on the “Making Home Affordable” program. Dubbed the “Mortgage Rescue”, “Homeowner Affordability and Stability Plan", “Homeowner Bailout” and various other names in the press, the official program name is now the “Making Home Affordable” (MHA) program. Details are available at a new site, FinancialStability.gov. While the site says it is “coming soon” there is already a great deal of information available there. http://www.financialstability.gov/

Florida Homes Sales Post Another Gain!

HOME SALES UP.... INVENTORY DOWN!

Florida's existing home sales rose 24 percent in January, making it the fifth month in a row that sales activity increased year-to-year, according to the latest housing data from FAR. Florida Realtors also reported a 13 percent gain in statewide sales of existing condos last month. NAR reported that nationwide sales of existing homes - all housing types - fell 5.3 percent last month; at the same time, inventories fell to a two-year low.

Are You Still Waiting For The Government?

Article provided by Michael Payette at M&I Bank.

During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.

You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.

The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.

Make sure your financial house is in order

If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals. Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:

Your W-2s and tax returns for the last two years;
Your last three months of bank statements; and
Pay-stubs for the most recent 30 days.

If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.

For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?

Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.

For more information, please email Michael Payette at M&I Bank, michael.payette@micorp.com or phone him at (813)334-8412. Mention you saw this article on my blog, if you would.

Home Buyer Credit

CREDIT WHERE CREDIT IS DUE

First-time homebuyers have exactly 285 days to buy a home if they want to pocket $8,000 tax-free. It's not long. Every homebuyer has unique circumstances, however, and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently-asked questions. The homebuyer resource is found at: www.federalhousingtaxcredit.com

© Copyright 2009 INFORMATION, INC. Bethesda, MD

First-Time Home Buyer Tax Credit

Click on photo to see full sized chart.

NAR: Implement Stimulus Package Quickly!

WASHINGTON – Feb. 16, 2009 –

Now that the American Recovery and Reinvestment Act has been sent to President Obama for his signature, the National Association of Realtors® (NAR) looks forward to swift implementation.

“We are pleased that Congress and the administration have taken prompt action to address the current economic crisis,” says NAR President Charles McMillan. “Job creation and tax cuts are going to help families recover and prosper, and these initiatives will help more people keep their homes and help others become homeowners.”

The legislation contains two important housing provisions advocated by NAR. The final stimulus bill increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until Dec. 1, 2009.

“These important provisions will help bring first-time homebuyers to the market and reduce housing inventory,” says McMillan. NAR estimates that the homebuyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These … make mortgages affordable regardless of where you live,” McMillan says. “ This will also help reduce inventory and improve liquidity in the overall mortgage market.”

NAR commended President Obama and Congress for including neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. Realtors also praised the provision to help America’s wounded soldiers who need to move or relocate.

In addition to federal bailout measures, NAR’s also advocates better foreclosure mitigation efforts and lower interest rates for homeowners and buyers. NAR expects these components to be addressed in the coming days.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Big Banks Announce Foreclosure Halt!

Big Banks Announce Foreclosure Halt
By ALAN ZIBEL,
AP
WASHINGTON (Feb. 13) — JPMorgan Chase & Co. and Citigroup Inc. are halting home foreclosures while the Obama administration develops its plans to help the U.S. housing market.
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JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.

Citigroup's foreclosure moratorium applies to all "Citi owned first mortgage loans that are the principal residence of the customer as well as all loans Citi services where we have reached an understanding with the investor" until President Barack Obama's administration has finalized the details of the loan modification program or March 12, whichever is earlier, according to a company release. New York-based Citi's action expands on a similar effort that it started in November.

Frank earlier this week called on the mortgage industry to enact such broad foreclosure moratoriums.

The administration is working on a plan to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans.

"We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages," Dimon wrote.

Government-controlled mortgage finance companies Fannie Mae and Freddie Mac suspended foreclosure sales during the winter holidays and have halted evictions from foreclosed properties until next month. And earlier this week, John Reich, director of the Office of Thrift Supervision, urged the more than 800 thrift institutions nationwide to do the same.

Meanwhile, the administration is considering spending taxpayer dollars to cut monthly payments for homeowners on the verge of foreclosure.

Still, deciding who would qualify would be a challenge, especially as foreclosures continue to soar. More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.

The administration also is expected to back a push in Congress — but opposed by the mortgage industry — to let bankruptcy judges alter the terms of primary home loans. Earlier this week, Obama said it "makes no sense" that judges are not allowed to do so. The mortgage industry argues that this prohibition allows lenders to charge lower rates.

Copyright 2009 The Associated Press.

Florida’s existing home, condo sales rise in 4Q 2008

ORLANDO, Fla. – Feb. 12, 2009 –
Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 30,163 existing homes sold statewide in 4Q 2008; during the same period the year before, a total of 26,635 existing homes sold statewide. It marks the second consecutive quarter that Florida has reported higher existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year, according to FAR.

Florida Realtors also reported a 3 percent gain in statewide sales of existing condominiums in the fourth quarter compared to the same time the previous year. This marks the first three-month period that has noted increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Twelve of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while eight MSAs showed gains in condo sales. A growing number of local markets have reported increased sales activity over the past few months, according to FAR.

The statewide existing-home median sales price was $161,200 in the fourth quarter; a year earlier, it was $216,600 for a decrease of 26 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. According to the fourth quarter 2008 survey, respondents’ increasing concerns about the economy have dampened the investment outlook for various types of properties.

However, one positive sign is the recent dramatic increase in refinancing with the availability of 5 percent mortgage rates in mid-December, according to Dr. Wayne Archer, center director. If additional programs are put into place that create 4.5 percent Federal Housing Administration mortgages for people who have difficulty making payments, he said, it will do even more to stabilize the housing industry.

In the year-to-year quarterly comparison for condo sales, 8,374 units sold statewide for the quarter compared to 8,098 in 4Q 2007 for a 3 percent increase. The statewide existing-condo median sales price was $136,400 for the three-month period; in 4Q 2007, it was $190,400 for a decrease of 28 percent.

Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.86 percent in 4Q 2008; one year earlier, it averaged 6.23 percent.

The outlook for housing and the economy remains clouded despite improved affordability conditions, according to NAR’s latest industry forecast. “For a sustainable housing market recovery and, thus a sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” said NAR Chief Economist Lawrence Yun.

© 2009 FLORIDA ASSOCIATION OF REALTORS

FICO '08 System For Creditworthiness

A new system for determining your credit-worthiness, FICO '08, rolls out this Thursday, and there's nothing you can to do stop it.
1. Spouses and children can improve their credit score by being an authorized user on a credit card account, but that's it. No more piggybacking off strangers.

2. Debts less than $100 that go to collections will matter less.

3. They will look at the total picture more. A single repossession, for instance, won't matter as much if everything else looks good.

4. Having less available credit will drag down your score more.

5. Diversity matters more. A mix of healthy auto, personal and student loans would bring up a score.

6. Closing accounts will bring down the score.