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2011-05-14T05:18:00.001-07:00

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Gov't unveils plan to shrink some home loans

2010-03-26T10:44:00.000-07:00

By ALAN ZIBEL and CHRISTOPHER S. RUGABER, Associated Press Writers31 mins ago

WASHINGTON – Under pressure to stem the foreclosure crisis, the Obama administration launched a plan Friday to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break.

Administration officials cautioned that the plan won't stop all foreclosures or help all troubled homeowners. Instead, officials said their goal is to meet their original target, announced last year, of helping 3 million to 4 million borrowers avoid foreclosure.

The new effort is designed to help two groups:

• Borrowers who owe more on their loans than their houses are worth. Nearly 15 million homeowners fall into this category, according to Moody's Analytics. About 10 million of them owe at least 20 percent more than their house's current value.

These people would be helped in either of two ways: Their mortgage companies can cut the total amount they owe on their mortgage. Or they can refinance into loans backed by the Federal Housing Administration, which insures loans against default. The FHA will get $14 billion in incentive money from the federal bailout fund.

• Unemployed borrowers. People receiving unemployment benefits would see their mortgage payments drop to no more than 31 percent of their monthly income — but only for three to six months. That's intended to give homeowners more time to find a job. Once they do, they may qualify for a loan modification that would permanently reduce their payments.

The administration's existing program to prevent foreclosures has failed to make a dent in the problem. A lack of planning and shifting rules on qualifications for it produced a huge backlog in the program, the special inspector general for the federal financial bailout fund told lawmakers this week. Only 170,000 homeowners have completed loan modifications out of 1.1 million who began the program over the past year.

On Friday, administration officials played down any notion that the new plan would solve the foreclosure epidemic. About 6 million homeowners have missed at least two months of payments.

"There's no intention here of tackling what may be 10 to 12 million foreclosures over the course of the next three years," said Diana Farrell, a White House economic adviser. But she said the plan would be "enough to provide help to those for whom help is worthwhile ... and to provide some kind of stability in the market."

The plan won't assist investors and speculators or "Americans living in million dollar homes or defaulters on vacation homes," an administration fact sheet said.

Some homeowners won't be able to afford to stay in their homes because they bought more than they could afford, officials said.

Mark Zandi, chief economist at Moody's Analytics, estimated the plan could help 1 million and 1.5 million homeowners avoid foreclosure, compared with about 500,000 if no changes were made in the program.

"The changes are wide-ranging and significant and have the real potential for bringing the foreclosure crisis to a much quicker end," Zandi said.

But preventing even a fraction of potential foreclosures could help stem the slide in home prices. That would encourage those who are "under water" — who owe more than their homes are worth — to keep paying their mortgages as prices stabilize.

Some are unconvinced.

"We remain dubious about government mortgage modification efforts," wrote Jaret Seiberg, an analyst with Concept Capital's Washington Research Group. "So far none have lived up to expectations, and we see little reason to believe the latest effort will turn out any different."

The plan announced Friday will require the mortgage companies participating in the administration's existing foreclosure prevention program to consider slashing the amount borrowers owe. They will get incentive payments if they do so.

It also includes three to six months of temporary aid for borrowers who have lost their jobs. And there will be additional payments to give banks an incentive to reduce payments or eliminate second mortgages such as home equity loans. That problem that has blocked many loan modifications.

The plan will also allow lenders to refinance mortgages that are under water with a new loan backed by the FHA. Lenders will have to reduce the first mortgage by at least 10 percent. And the total mortgage debt cannot exceed 115 percent of the current value of the home.

The four big holders of second mortgages — Citigroup Inc., Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. — have now joined the government's program to modify second mortgages, after pressure from the Treasury Department. That program was delayed for months but now the major players in the industry are on board.

Rep. Barney Frank, D-Mass., said Friday that he would call top executives from the four big banks to a hearing next month. "We will be urging the banks to show full cooperation with this plan," he said in a prepared statement.

Top 10 Home Updates That Pay Off

2010-03-26T07:06:00.000-07:00

Visit:
http://www.Frontdoor.com/news/article/55532
to view this article.

In a tough market, these projects are your best bet

By Dona DeZube, FrontDoor.com | Published: 2/01/2010

Wondering if you'll be able to recoup the cost of your next home remodeling project? It's tough to know in today's market.

With uncertainty ruling real estate, it's not surprising that seven of the top 10 projects in the 2009-2010 Remodeling Magazine Cost vs. Value Report are exterior upgrades. About 4,000 real estate agents and home appraisers were surveyed for the report.

It makes sense. With so many houses for sale, a fabulous exterior is exactly what a home seller needs to lure in potential buyers.

Find out what 10 projects have the best return based on their cost and the value they add to your home.

Update #1: Start with your front door >>

Value of Remodeling Projects Down

Overall, the average value of home improvement projects declined for the 33 projects in 80 cities that the magazine condenses into a single number for the Cost vs. Value report.

"That one cost-to-value ratio number has been dropping since 2005," says Sal Alfano, editorial director of Remodeling Magazine. "The rate of decline has slowed, which is a good thing, but this is such an odd year that the data is hard to interpret. Take the results with a grain of salt because of the unusual market this year."

Projects found at the bottom of the list include home offices (48 percent return) and sunroom additions (51 percent return). What do they have in common? Both are expensive and don't have broad appeal.

Sunrooms aren't used as much as kitchens or bedrooms. And, while a home office is great if you work from home, it won't add value when you sell, especially if you took away a fourth bedroom to create your workspace.

Check Local Figures Too

Along with its national figures, Cost vs. Value also offers complete regional and city data, which can be downloaded for free at www.costvsvalue.com. However, even the local information should be used carefully.

The survey, Alfano says, provides a baseline estimate of value, not a guarantee that you'll actually recoup any particular value for an individual remodeling project.

"None of it should be taken literally by a homeowner," he warns. "The fact is that they're averages and hypothetical and the areas we survey cover MSAs [Metropolitan Statistical Areas] that are huge and you have neighborhoods where prices fluctuate."

The best way to use to data is as a measuring stick. Decide whether you're in an upscale or mid-range neighborhood and then use the average local prices to make sure the price you expect to pay for your next project is reasonable.

To see the top 10 Improvements, click here

Michigan Ranks 5th in the U.S. in Foreclosures

2009-09-11T08:00:00.000-07:00

Nevada leads the nation in percentage of foreclosed homes, but California records a massive 92,326 foreclosures!

In a recently released report, Michigan ranked 5th in foreclosures, based on the percentage of homes in foreclosure to non-foreclosed homes. In quantity alone, Michigan ranked 4th. Here is the breakdown:

#1 is Nevada with a ratio of 1 out of every 62 homes in foreclosure (17,902 total foreclosures

#2 is Florida with 1 out of every 140 homes in foreclosure (a whopping 62,401 total foreclosures)

#3 is California with 1 out of 144 homes in foreclosure (a massive 92,326 total foreclosures.

#4 is Arizona with 1 out of 150 homes in foreclosure (17,807 total foreclosures)

#5 is Michigan with 1 out of 234 homes in foreclosure (19,359 total foreclosures)

Believe it or not, many of these states have shown improvement in August over July, as some of the government & lender initiatives have helped cut this down.

What is your feeling or experience on the foreclosure crisis? Let us know.

12% of eligible borrowers helped by Obama plan

2009-09-09T10:25:00.001-07:00

Almost 125,000 more people in program this month over July.

Mortgage lenders have placed 12% of troubled borrowers, or 360,165 people, into the government sponsored mortgage help program that started in February. This number is up from 235,247 last month, as lenders continue to accelerate their efforts to save homes from foreclosure.

Although the program did start off slow, it has gained ground in the past few months as mortgage companies are facing a wave of new foreclosures. Banks lose far less money by reducing or restructuring an existing loan than by placing a customer into foreclosure, so there is a definite advantage for banks to participate.

Some banks, however, are participating at varying degrees. Here is a breakdown of the top participating major lenders:

Saxon Mortgage Group: 39%
Nationstar Mortgage: 30%
GMAC Mortgage: 26%
JPMorgan Chase: 25%
Citi Mortgage: 23%
Wells Fargo: 11%
Bank of America: 7%

If you have any stories about receiving mortgage relief, please share them by posting a comment on this blog or email: info@erareardonrealty.com

Thanks!

Michigan Ranks 9th in the U.S. in Number of "1st Time Homebuyer Tax Credits" claimed so far

2009-09-08T09:59:00.000-07:00

As of August 31st, Michigan ranked #9 in the U.S. in the number of tax credits claimed so far with 9,237. This number is made up of people who have closed on a qualifying home purchase this year and filed an amended 2008 tax return. Here are a list of the top 10 states:

California - 42,304
Texas - 29,536
Florida - 29,132
Georgia - 11,109
Pennsylvania - 10,250
Illinois - 9,918
Arizona - 9,357
North Carolina - 9,355
Michigan - 9,237
Ohio - 9,172

Pending home sales hit 6th straight increase

2009-09-01T08:23:00.000-07:00

Index jumps by 3.2% in July, beating estimates and marking its longest streak on monthly increases on record.

Pending sales of existing of homes jumped up 3.2% in July, fueled by a combination of low interest rates, moderate home prices, foreclosure sales & the $8,000 tax credit. Good news for everyone!

Locally in Jackson County, sales of existing homes were reported to have risen 18% in the first half of the year over the same period in 2008.

Although the economic climate remains tough, there are signs of life! Foe every home sold, especially a foreclosure, that is a happy new homeowner filling a vacant home!

Pending Home Sales Rise for the Fifth Consecutive Month

2009-08-05T12:35:00.000-07:00

According to the National Association of Realtors, pending home sales rose in June by 3.6% over May. The increase marks the fifth straight month that pending sales have increased. The last time sales posted five consecutive monthly gains was July 2003!

The combination of reduced home prices, low interest rates & the $8,000 Tax Credit have spurred people to buy up plenty of good values. In the Midwest specifically, sales are up 11.6% over a year ago, driven mainly by excellent values.

While many of these sales may be on distressed properties & foreclosures, that is actually a good thing! Owner occupied homes raise property values & the buying of foreclosures thins out the glut of housing inventory that has kept prices down all year.

Turn-around? We hope so!

New Bills Introduced to extend/change "Homebuyer Tax Credit"

2009-06-19T09:00:00.000-07:00

Several new bills have been introduced in both Congress & the House of Representatives that would both extend the current $8,000 tax credit AND make it available to all buyers, not just "first-time" home buyers. This is big news & I will try to keep you posted on the progress of these bills. This just confirms that it will continue to be a great time to buy Real Estate for the next few years!

Matt

The verdict: "Hope for Homeowners" plan starting to get traction..

2009-06-11T06:20:00.000-07:00

As we discussed last month, President Obama's "Hope for Homeowners" plan started out as a huge disappointment, mainly because of banks unwillingness to participate. After some tweaks, the new stats are starting to trickle in. More than 55,000 troubled homeowners have received loan modification offers under President Obama's foreclosure prevention program trough mid-May.

The administration also announced it was expanding the $75 billion program to assist more troubled borrowers. The government will provide incentives for servicers and borrowers to avoid foreclosure using methods such as short sales.

Servicers have also mailed more than 300,000 letters to homeowners who might be able to get modifications, the administration said. Mortgage holders who live in their homes and have loans of no more than $729,750 originated before Jan. 1 are eligible. Also, they must be in default or at risk of default for a reason such as a significant change in income or expenses.

Let's "Hope" that this program continues to save the homes of Americans, even your friends & neighbors!

Matt

Existing Home Sales for April Up 2.9%

2009-05-27T10:06:00.000-07:00

It was reported today that sales of previously occupied homes rose modestly from March to April as buyers took advantage of prices that were 15.4 percent below year-ago levels.

The National Association of Realtors said Wednesday that home sales rose 2.9 percent to an annual rate of 4.68 million last month, from a downwardly revised pace of 4.55 million in March.

The results slightly beat economists' forecasts. Sales had been expected to rise to an annual pace of 4.66 million units, according to Thomson Reuters.

This is encouraging news! The buying market continues to get better as investors & residential buyers drive the market forward. This trend will need to continue in order to use up some of the excess inventory that is keeping prices down. There is currently a 10-month inventory nationwide of existing homes for sale, which means prices will continue to slide until that inventory is reduced.

What do you think? Is the market headed for a rebound, or is this just an anomily?

Matt

New survey says 75% of people think it is a good time to buy a home!

2009-05-26T13:05:00.000-07:00

According to a new Pew Research Center survey completed this Spring, 75% of people surveyed indicated it was either a "good" or "very good" time to buy a home! Here is the breakdown of responses:

Very Good - 18%

Good - 57%

Bad - 17%

Very Bad - 4%

As with any survey there is some margin of error, but this is sure a change in sentiment from say....last year! Overall, the public is upbeat about buying a home in the current economic climate. This is good news and most likely the first part of the economic recovery for our country.

What do you think? A good time to buy or not?

Matt

New Hope for "Hope for Homeowners" Program?

2009-05-26T10:36:00.001-07:00

The "Hope for Homeowners" plan that took effect on October 1st of last year has been a HUGE disappointment to say the least. It was, in effect, a voluntary program for lenders to "write-down" mortgages (forgive part of the debt) and help keep people in their homes. The mortgage industry and the banks that are effected apparently were feeling bitter and not wanting to "volunteer" anything to delinquent borrowers. In fact, only 1 family was proven to have been helped by this bill....big surprise!

On May 20th, president Obama signed an improvement to this bill. It lowers the amount that banks need to "write-down", and it also offers lenders $1,000 for each loan it amends. While this is not startling, it is progress, and we need all the progress available to help the millions of families effected by the foreclosure crisis. Will it be enough to get banks off the sidelines and into the game of saving family homes? Will banks have the foresight to just take a small loss upfront instead of the huge cost of foreclosure? We will see.

My view is....more needs to be done. I will keep you posted as the results come in.

Matt

Fed anounces expanded help to stem foreclosures

2009-05-14T12:33:00.001-07:00

The Obama administration on Thursday outlined an expansion of its housing rescue plan that will help homeowners who face foreclosure because they are ineligible for current assistance programs.
Federal officials also provided a report card of sorts on how the home loan modification and refinancing efforts are going since the housing rescue plan was announced in February.

The expanded program includes:

• Foreclosure alternatives. Homeowners unable to qualify for a modification will see a more streamlined process for pursuing short sales and deeds-in-lieu of foreclosures, which transfer a home back to the lender. The goal is to help homeowners avoid a foreclosure that could lead to a severe hit on their credit score.

A short sale is when a home is sold for less than the amount of its remaining mortgage, but lenders agree to consider the debt paid. Lenders would be eligible to receive a federal financial incentive of up to $1,000 if they permit a home to be sold via short sale.

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• Protections for homeowners whose home value has fallen. Under a $10 billion program, new incentives will be provided to lenders to help them make modifications in areas undergoing steep drops in home prices. These incentives will help cover lenders' financial loss.

"If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future," Treasury Secretary Tim Geithner said at a press conference.

Since the administration's housing rescue plan was announced, more than 1 million Americans have refinanced.

Mortgage giant Fannie Mae has put more than 233,000 eligible refinance applications through its refinancing program. More than 55,000 loan modifications have been extended to qualifying borrowers.

Fourteen servicers have now signed contracts and begun modifications. These participants account for more than 75% of all loans in the country.

The Obama administration has said it expects up to 9 million homeowners to get help through mortgage refinancing and loan modifications.

But the very complexity of the program has made for a slow start and done little to dampen foreclosures, which have risen as banks ended temporary foreclosure moratoriums. The number of households facing foreclosure rose 32% in April compared with the same month a year earlier, according to RealtyTrac.

"It's been slow. The foreclosure problem is not going away," says Mark Zandi, with Moody's Economy.com. "But I'm hopeful that there will be more modifications taking off this summer and fall. If not, home prices will slide away."

The concern is that mounting foreclosures will depress prices further, causing more homeowners with conventional mortgages to owe more than the homes are worth. That raises the likelihood of more conventional loan holders defaulting.

The rescue program has taken off slowly in part because of its complexity — homeowners seeking a modification, for example, must verify income and write a letter explaining their financial need in seeking a mortgage change.

U.S. mortgage applications climb, rates at fresh low

2009-04-01T05:34:00.000-07:00

U.S. mortgage rates set fresh record lows last week, fostering demand for refinancing that drove home loan applications to the highest level since mid-January, data from the Mortgage Bankers Association showed on Wednesday.

The pace of the rise ebbed from the prior three weeks, when homeowners in droves raced to refinance as average 30-year mortgage rates sank by a half percentage point. Last week, however, the rate dipped by just 0.02 point to 4.61 percent.

All eyes are on the housing market to see how soon a spate of government interventions stabilizes the deepest slump since the Great Depression, and thus energizes the U.S. economy.

Lansing/East Lansing Area ranked #1 most affordable metro area in the US by CNBC!

2009-03-26T07:10:00.000-07:00

CNBC, citing information from the Wells Fargo Housing Opportunity Index has named the Lansing/East Lansing Area as the #1 "Most Affordable Metro Area" in the US! The ranking was based on the area having a median home price of $85,000 compared to a Median Family Income of $62,700. This gives the area a 95% share of affordable homes. There were 3 other metro area in Michigan that were included: Battle Creek, Bay City and Saginaw Township. The remainder of the top 10 were all in the Northeast (Ohio, Indiana & New York).

This is a very positive sign for Michigan's housing market! Afordable housing is a key factor in attracting new families to the state. Although Jackson wasn't included in the survey due to in's smaller size, I am sure it would have ranked very high!

What are your thoughts?

Mortgage rates turn lower this week

2009-03-13T07:46:00.000-07:00

30-year-fixed average at 5.03 percent, falling from from 5.15 last week

Rates on 30-year-fixed mortgages declined this week amid reports of a weakening job market and easing concerns over inflation, Freddie Mac said Thursday.

The average rate on a 30-year fixed mortgage slipped to 5.03 percent this week from 5.15 percent last week. A year ago, the 30-year fixed-rate mortgage averaged 6.13 percent.

"Mortgage rates had room to ease this week following news of a weaker jobs market, which may slow consumer spending and keep inflation at bay," said Frank Nothaft, Freddie Mac's chief economist.

Last week, initial jobless claims totaled 645,000. Thursday, the Labor Department said the figure climbed to 654,000, while the number of people receiving benefits for more than a week increased by 193,000 to 5.3 million — the most on records dating back to 1967.

Average rates for 30-year-fixed-rate mortgages hit a record low of 4.96 percent in January, a decline attributed to the Federal Reserve's move to buy $500 billion in mortgage-backed securities to spur lending by banks.

"Given the recent historically low mortgage rates, homeowners have a strong incentive to try and refinance," Nothaft said.

This week's average rate on a 15-year fixed-rate mortgage fell to 4.64 percent from 4.72 last week. Last year at this time, the 15-year rate averaged 5.60 percent.

Average rates on five-year, adjustable-rate mortgages declined to 4.99 percent from 5.08 percent last week. Rates on one-year, adjustable-rate mortgages fell to 4.80 percent from 4.86 percent last week.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point for 30-year and 15-year fixed-rate mortgages. The fee for five-year adjustable-rate mortgages averaged 0.6 point and 0.5 point for one-year adjustable-rate mortgages.

Mortgage finance companies Fannie Mae and Freddie Mac, which were seized by the federal government in September 2008, own or guarantee almost 31 million home loans worth about $5.5 trillion. That's more than half of all U.S home mortgages.

City of Jackson to receive about $1.8 million in stimulus funds for neighborhoods, homelessness prevention

2009-02-26T11:06:00.000-08:00

This article came from the Cit Pat, thought you would find it refreshing to get some great community news!

Jackson is expected to get $1.8 million in funding for community development and aid to the poor through the recently passed economic recovery package, U.S. Rep. Mark Schauer said Thursday.

It is the first wave of stimulus funding to be announced for local efforts.

"This funding is just the first step in putting recovery dollars to work quickly, and it will offer a much-needed boost to communities across our area," Schauer, D-Battle Creek, said in a written statement.

The city of Jackson will get $371,955 in Community Development Block Grant funds, $889,894 will go to the Jackson Housing Commission and $568,942 will go toward homelessness prevention.

Stimulus Bill Passed: How will it effect you?

2009-02-19T13:13:00.000-08:00

Here are a few of the high level details form the recently passed Economic Stimulus Bill:

-Each eligible worker would get a credit of 6.2% of earned income up to a maximum credit of $400 ($800 for a two earner couple). This essentially equates to $12-$20 extra per paycheck. This is available to anyone who earns less than $95K per year and $190K for couples.

-First time homebuyers or homebuyers that haven’t bought a home in the past three years would receive an $8,000 tax credit for a principal residence purchased through November 30th 2009. This credit phases out for individuals with adjusted gross incomes between $75K to $95K and $150K to $170K for joint filers. This credit has to be repaid if you sell your home within 36 months.

-The credit within the federal alternative minimum tax (AMT) calculation is slightly increased for the 2009 tax year, which will reduce the amount of taxpayers subject to the AMT (Due to the tax structure in Maine, Mainer’s tend to be more susceptible to this tax).

-The first $2,400 of unemployment tax benefits will not be subject to federal income taxes.

-Taxpayers will be allowed to take an above the line deduction from income tax the state and local sales tax paid on a new car. The purchase limit is $49.5K and is applicable through the end of the year. (Although not usually applicable for Mainers, people who claim the itemized sales tax deduction already would not be eligible to claim this). This deduction phases out for individuals with adjusted gross incomes in between $125K to $135K and $250K to $260K for those married filing jointly.

-For workers laid off between 9/1/2008 and 12/31/2009, the cost of maintaining extended coverage through their former employer will be reduced by 65% for nine months. This benefit is available for participants that have income that exceeds $125K and $250K for those who are married and file jointly. Those who meet the eligible time frame but initially rejected coverage will get a second chance to re-apply for benefits.

-The Hope Credit available for college costs will be replaced by the American Opportunity Tax Credit which is a partially refundable credit of up to $2,500 that covers fours year’s worth of college. This is available through 2010 and then the Hope Credit would reinstate after that. In addition, Pell Grants aid awards increase by $500.

-Qualified 529 distributions now allow the cost of a computer as a qualified expense where this was not allowed unless the college required students to have a computer.

-Social Security recipients who don’t qualify for tax credits because they don’t work would get one time $250 payments.

-Energy efficient home improvement credit provisions are extended through 2010.

-Increased earned income tax credit for families with three or more children and additional marriage penalty relief

This only goes into the personal finance issues, but there are also provisions within the legislation that could possibly benefit business owners as well. As always, consult your tax advisor to get additional details on each. With the tax season in full swing, this is a good opportunity to discuss these provisions on how they may be able to help you!

Pending home sales post increase of 6.3 pct

2009-02-03T07:30:00.000-08:00

WASHINGTON – The National Association of Realtors says pending U.S. home sales rebounded in December, as buyers snapped up properties at deep discounts, especially in the South and Midwest.

The trade group said Tuesday its seasonally adjusted index of pending sales for preowned homes for December rose 6.3 percent to 87.7 from an upwardly revised November reading of 82.5. That's better than the 82.3 reading economists expected, according to a survey by Thomson Reuters.

The reading also was up 2.1 percent from December 2007.

The index tracks signed contracts to purchase existing homes. Typically there is a one- to two-month lag between a contract and a done deal. Home sales that were pending in December are likely to be completed in the coming weeks.

Foreclosure Filing Down in Jackson County

2009-01-15T08:54:00.000-08:00

According to figures provided by the Jackson County Registrar of Deeds, Mindy Reilly, the number of Sheriff's Deeds being filed is trending down! A piece of good news in a pretty volatile housing industry.

The numbers:

Filings for the first 6 months of 2008 = 714

Filings for the last 6 months of 2008 = 538 **A drop of around 25%!**

Filings for December 2007 = 105

Filings for December 2008 - 45 **A drop of almost 59%!**

The reasons for the drop-off could be related to several factors:

1. Some mortgage companies have suspended foreclosures temporarily so they can work with homeowners on avoiding foreclosure.

2. Some mortgage companies have stepped up their efforts to reach out to homeowners and re-structure their loans.

3. It is possible that the bulk of the "predatory" loans that have been so prevalent the past few years are working out of the system.

Whatever the cause, it is good news. Fewer foreclosures means more homeowners, less vacant homes and maybe the start of a recovery for Jackson!

What are your thoughts?

More First-Time Buyers Entering the Market

2008-11-10T12:49:00.000-08:00

The 2008 National Association of REALTORS® Profile of Home Buyers and Sellers
reveals that the number of first-time buyers have risen as a percentage of the market share and they plan to own their homes longer than buyers in the past.

Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it’s a trend he expects to grow.

“First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home,” he said. “Given low home prices, plentiful supply, and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.

“Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves – that, in turn, should free more existing owners to make a trade in 2009.”

The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year’s survey and 36 percent in 2006. “Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent data show a stronger uptrend in first-time buyers who are helping to reduce excess inventory,” Yun said.

According to the NAR study, the median age of first-time buyers was 30, down from 31 in 2007, and the median income was $60,600. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.

First time home buyers...

2008-10-07T12:02:00.001-07:00

First time home buyers receive a $7,500 text credit, if you buy now. Call for details at 517-782-29... listen

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New $7500 Tax Credit for First Time Home Buyers!

2008-09-09T09:07:00.001-07:00

YOU could get a $7500 interest free loan from the government just for buying a home in 2008 or 2009!

As a part of the Housing and Economic Recovery Act of 2008, the government has made a vailable a tax credit of up to $7500 for first time home buyers. "First Time" is a flexible term, only meaning you can't have owned a primary residence in the past 3 years. It is in fact a loan, but only has to be paid back at the rate of $500 per year over 15 years through your tax burden. No direct payments! In short, a can't lose if you could use the money! Here are some frequently asked Q & A:

Who is eligible to claim the $7,500 tax credit?

First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.
What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
Does the credit amount differ based on tax filing status?

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
This tax credit is refundable. What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

Jackson Police: Keep an eye on empty houses

2008-05-21T11:25:00.000-07:00

Wednesday, May 21, 2008
By Steven Hepker

Jackson police are asking residents to monitor abandoned homes in their neighborhoods for illegal activity, including drug use, metal thieves and squatters.

``With so many people leaving Michigan because of the economy, we have an abundance of vacant homes,'' Lt. Kevin Hiller said.

On Monday, officers arrested three people suspected of stripping copper from a vacant home in the 200 block of Damon Street.

``People who are stealing copper and other metals from vacant homes are doing it in the daytime because the electricity is off,'' Hiller said.

Copper has soared from 90 cents a pound in 2003 to $4 a pound this spring.

The high price of scrap metal has created long lines at scrap yards in Jackson, Jonesville and the Detroit area.

Much of the scrap being brought in is disabled farm machinery and yard and garage junk.

While the hot market is helping clean up the landscape, it also has emboldened thieves to steal car parts, cars, plumbing, air conditioners, boats and tools in Jackson in recent months.

Thieves are stripping vacant houses of copper water and gas lines and copper electrical wire.

``We would like people to keep an eye out for suspicious activity in their neighborhoods,'' Hiller said

Property Tax Relief for Some Homeowners!

2008-04-21T11:27:00.000-07:00

God news for those of you who own 2 homes and are selling 1 of them. If you moved to a new home recently and have a vacant home that is listed for sale, there may be some relief for you in the near future. Governor Granholm signed a bill recently that allows for homeowners in this situation to claim 2 homestead exemptions instead of the normal 1.

House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms) enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner’s principal residence if the following circumstances are met:

the property is not occupied,
the property is for sale
the property is not leased or available for lease
the property is not used for any business or commercial purpose

Governor Granholm Signs "Save The Dream" Legislation

2008-04-03T11:15:00.000-07:00

Legislation is aimed to help local residents facing foreclosure

Surrounded by local lawmakers in a Jackson bank, Gov. Jennifer Granholm gleefully signed into law Wednesday a bill to help struggling homeowners avoid mortgage foreclosure.

The "Save the Dream" legislation, effective immediately, creates two refinancing options for some homeowners through the Michigan Housing and Development Authority. The package is designed to diminish the number of mortgage foreclosures sweeping the state.

Granholm made the presentation and signed Senate Bill 950, one of six bills in the package, in the lobby of Citizens Bank, 1712 E. Michigan Ave. She also made stops in Grand Rapids and Detroit.

Last year, Jackson County had a record 1,227 foreclosures, and it already has more than 200 this year.

"Jackson has been hard-hit by the struggling auto industry and the slowness of the economy," Granholm said. "We just want to provide people with help where they need it most."

The tools allow homeowners struggling with rising adjustable-rate mortgages or homeowners who have fallen behind on mortgage payments and are at risk of losing their homes to get a lower, 30-year fixed-rate loan.

To qualify for the programs, household income must be less than $108,000 and the home's purchase price cannot exceed $224,000.

The programs will be paid for by taxable bonds. Home-owners will be responsible for the full value of their refinanced mortgages.

Sens. Mark Schauer, D-Battle Creek, and Randy Richardville, R-Monroe, helped push the package through the Legislature and on Wednesday escorted the governor into the lobby. They represent portions of Jackson County.

"When people lose their homes in Michigan, they are Democrats, they are Republicans, it doesn't matter," Granholm said. "It's about Michigan. This is pro-Michigan legislation."

Richardville said the foreclosure crisis is the toughest issue facing Michigan households. Schauer said the problem "is devastating families, neighborhoods and communities across the state."

Schauer decried the thought that homeowners in trouble made their bed and should lie in it.

"That kind of thinking ignores the fact that this crisis affects all of us and that some homeowners were taken advantage of through no fault of their own," he said. "This will directly benefit the community."

Credit Clampdown for Prospective Homeowners

2008-03-31T06:24:00.000-07:00

As you may have heard, the Mortgage industry is getting pretty wary about clients whose credit scores are less than perfect. So what does it mean for you?

Well, for anyone with a mediam credit score below 680, that means some more scrutiny of your credit history from mortgage underwriters. Just in case you are wondering, about 42% of Americans have a credit score between 600-700. That is alot of people! Does it mean that you can't get a loan...no. Does it mean that if you have some "skeletons" in your financial closet you won't get some scrutiny...yes.

So what can you do about it? Check your credit score. There are a number of websites that allow you to check and monitor your score. Most of them will give you a 1 bureau report free and then charge you $10-15 per month to monitor your score and any changes to your credit. In this bloggers opinion, this is a good investment! I pay for monitoring myself and have found ut exceptionally enlightening to watch my score. I feel in actual control of my score and it's moving Northward in the credit ranks.

So, if you are thinking about buying a home in the near future, check that credit and get in control. Getting your score to at least 680 will save you time, money and stress!

Restraints on Mortgage Lenders Fannie Mae and Freddie Mac are Loosened

2008-03-25T07:00:00.000-07:00

Federally-backed mortgage lenders Fannie Mae and Freddie Mac got a reprieve from the government yesterday. Currently, the two companies together are required to maintain a nearly 20 Billion Dollar cash cushion at all times to ensure solvancy. The new measure would reduce that cushion requirement by 1/3 so that the lenders will have more cash to expand their roles in the tight housing market.

Forbes Magazine Notices Jackson!

2008-03-24T10:50:00.000-07:00

Recently, Forbes Magazine notified Jackson officials that they have identified Jackson, MI as one of the "Best Small Metropolitan Areas to Live and Work". It is unclear when the list will appear online or in print, but this is clearly good for Jackson's image as it tries to position itself Regionally along with Lansing and Ann Arbor. Keep you eyes open for the article!

Fed Gets Agressive, Stock Market Responds

2008-03-19T06:27:00.000-07:00

In an effort to calm investors and stop the country from moving further into a Recession, the Federal Reserve made an agressive .75 point cut in the prime interest rate yesterday. The stock market welcomed the news by surging up 420.21 points.

While this all sounds positive, how will it effect you? Here are a few speculations on that:

1. Credit card companies may lower your rates, but there could be up to a 3 month delay (it seems that reductions get passed on to you much slower than increases).

2. If you have an adjustable rate mortgage (ARM) you may see a slight reduction as the rate reduces. I wouldn't expect more than $25 - $50 in savings but it is something.

This is all assuming that the rate will stay low. It is now the lowest prime rate since 2004. I am pretty convinced that the rate will continue to go lower in an effort to "smoke and mirror" the economy into restarting.

The bottom line is that the Federal Reserve wants YOU to start feeling positive and euphoric again and to start spending again.

The best lesson that could be learned from all of this (in my opinion, anyway) is to spend less money and save more. The racing economy of the past 5 years just can't continue. Personal debt is out of control and that is what has lead to people being way over-extended. When this is all balanced out hopefully everyone will be a bit wiser about budgeting ther money. Until then, just be cautious. The economy will come back, it always does.

What are your thoughs?

Citizens Fighting Assesments

2008-03-17T11:20:00.000-07:00

This article was in the CitPat today. We have heard more and more about this issue. Is it effecting you? Is it fair?

Chris Hines paid $64,900 in 2007 for his fixer-upper, a modest Vandercook Lake home he bought off the foreclosure market.

The Bagg Avenue house has an attached garage, but Hines describes it as a 1,040-square-foot "dirt crawl space" that needs about $8,000 worth of work.

That's why he was shocked when he opened his assessment notice last month to find his home is valued at $124,400 and his property taxes increased about $500.

"If I wanted to pay that much in taxes I would have bought a nicer home," Hines said. "I'm fighting it all the way if I have to."

Hines is one of hundreds of disgruntled homeowners in Jackson County who went to boards of review this month to appeal their property taxes. Most boards are wrapping up deliberations, and appointments are no longer available.

Many of those who appealed, including Hines, will have to wait weeks until a final determination is made and a notice is sent in the mail. If a homeowner still is unsatisfied with the result, an appeal can be made to the Michigan Tax Tribunal.

Local assessors say some protests this year stem from confusion surrounding Proposal A, which was passed by Michigan voters in 1994. It limits property tax increases to the rate of inflation or 5 percent, whichever is less. It was designed to prevent taxable values from growing as fast as property values.

But many homeowners this year are seeing their property taxes increase even though assessed values are sliding in the midst of a slumping housing market. This irregular occurrence prompted a flood of phone calls to assessors and many appointments for appeals.

But a clause in Proposal A makes Hines' case distinctive.

A property's assessed value is 50 percent of what an assessor has determined to be the market value of the property. Many factors, including improvements and the number of houses sold in the area, are used to determine this value.

Under Proposal A, the tax cap is lifted the year after a home is purchased and the taxable value rises to become the assessed value. The problem is, in Hines' opinion, his home isn't worth $124,400.

Seeking a reduction, Hines brought pictures of his home and neighboring homes to the Board of Review on Tuesday to help prove his case. He was one of about 55 homeowners appealing in person to the Summit Township panel last week. The board, along with many others in the county, also accepts written appeals.

Though many townships said they didn't see a noticeable increase in appeals this year, Leoni Township residents filled all 96 available appointments and the township was to extend its deadline to accept written appeals.

Because new homeowners typically see their taxes shoot up, the township encourages them to make review appointments.

"It's the property owners' time to be heard," said Cary Stiles, Leoni Township assessor. "We're in charge of over 10,000 parcels. Take your one piece of 10,000 and really look at it."

Stiles said the board provides appealing property owners with a copy of their neighborhood's sales study.

She said the board asks the homeowners to provide any information relative to their appeal, which can include sketches, photos or written descriptions. The board reviews the information and makes a determination at a later date.

"We think everyone should have a fair shot at appealing their taxes," she said. "And we want to answer their questions."

Let us know what you think.

Foreclosure "Crisis" Overblown? Yes, says MSN.com

2008-03-13T08:37:00.000-07:00

Excerpts from an MSN Article posted on 3/12/08
By Scott Burns (MSN.Com)

Sure, there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.

A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by RealtyTrac, a company that compiles data on home foreclosures, the list showed the number of foreclosure filings in each metro area, the percentage of homes being foreclosed and the percentage change from the previous year.

Though the report had some dismal news -- such as the nearly 4.9% foreclosure rate in the Stockton, Calif., area -- a close look at the data also provides some reassuring information. It tells me, for instance, that the foreclosure crisis is a regional problem, not a systemic one. It could become a systemic problem, of course, but we're a long way from that now.

This news will disappoint the gloom-and-doom crew and all those seeking the excitement of financial upheaval. But it may be time to temper our worry and take a closer look at some of the year-over-year foreclosure statistics:

Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage-free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.

In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38% -- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less.

Where does Jackson fall in this equation? We certainly could be considered one of the "pockets of pain" that they refer to. With the major media outlets (including MSN.com focusing on the "Top 100" markets, how accurate is that for Jackson? How bad is it really? Probably not as bad as the media paints it generally, but worse than some areas.

Of course, no statistics in the world can minimize the pain of people here in our community that are going through the foreclosure process.

What are your thoughts? Is the foreclosure rate a "crisis" or just media hype?

Let us know what you think.

Savvy alternatives to tax refund loans!

2008-02-22T11:36:00.001-08:00

Don't let the urge to splurge -- or the need for a new refrigerator -- tempt you into expensive borrowing so that you can lay your hands on your refund a few days sooner.

Article By Bankrate.com

Just discovered you'll be getting a tax refund? Don't let your enthusiasm to spend that unexpected money get the better of you.

Thanks to today's technology, there's really no need to pay extra for a refund anticipation loan just to get your hands on your tax money a tiny bit sooner. If instant cash is more a desire than a need when considering a quick refund, consider these alternatives:

Go electronic
Abandon the traditional paper return sent via the U.S. mail and file from your computer. Last year, more than 73 million taxpayers filed their returns electronically. You'll get the money almost as quickly as you would with a refund anticipation loan, and you won't pay loan fees or interest.

In fact, you may not need to pay for anything. An Internal Revenue Service partnership with tax preparers and software companies offers free online tax preparation and e-filing to some taxpayers. The IRS says that whereas paper filers could wait up to eight weeks for their refunds, most electronic filers can expect their tax checks to show up in their mailboxes in half that time or less. The agency also points out that the error rate is less than 1% for electronic filers.

Direct deposit
Electronic filers who opt for refund direct deposit do even better(.pdf file). More than 61 million people got their refunds this way last year, an 8% increase from the year before.

The IRS says the money generally shows up in taxpayer bank accounts in 10 to 14 days. Even if you file the old-fashioned paper way, having your refund deposited directly into a bank account cuts the time you have to wait for your tax cash. Plus, it's added protection against lost or stolen refund checks sent through the mail.

Use store financing
If you want your refund to finance a must-have new appliance, store interest rates usually will be better.

Many stores offer free financing for limited periods. By then, the refund should have arrived, and you can use it to pay off the store credit -- and pay no interest at all.

Impatience usually wins
Ultimately, a refund anticipation loan is a personal preference, not a fiscal issue for taxpayers.

"Theoretically, with electronic filing and quicker turnaround on refunds, the need for tax-anticipation loans has become obsolete," says John L. Stancil, an associate professor of accounting and tax at Florida Southern College in Lakeland. "However, my observation is that they appear to actually be on the increase, as people become more and more impatient to get their refund.

"One sample I saw from a major company who provides these loans through tax preparers disclosed an annual percentage rate of 264% on the loan. All year long, taxpayers have made the government an interest-free loan, and now they are paying 264% to get their own money back a few days quicker."

Companies that offer refund loans, such as H&R Block, are well aware of such impatience, and that's why the loans survive even as electronic filing increases.

The tax-preparation giant notes on its Web site, "Taxpayers choose refund anticipation loans because they can receive money in one to two days, compared to waiting up to 15 days for a tax refund to be directly deposited into their existing bank account or three to eight weeks for a mailed IRS refund check."

That pitch definitely appeals to those who value speed over cost.

Recently, larger tax-preparation companies have been offering these impatient customers refund anticipation loans on easy-to-use prepaid debit cards. The ease of a debit card coupled with the draw of an "instant refund" tempt customers looking for a speedy return.

With all the pluses of these promises, many customers fail to see the charges incurred for their impatience. These expenses include tax-preparation fees, account fees and finance charges, as well as the fees of the debit cards, which include charges for ATM withdrawals and balance inquiries.

But if you can squelch your refund appetite for just a few days, then you -- and your bank account -- will be better off.

5 mortgage moves for 2008

2008-02-19T07:27:00.000-08:00

Knowing when and how your adjustable-rate mortgage will reset to a higher interest rate should be your first priority. It can help you determine whether -- and when -- refinancing is the right move.

Published by Bankrate.com on 2/19/08

In 2003, when mortgage rates dropped below 5.5% for a time, it was the Year of the Refinance. The years 2004 through 2006 constituted the Era of the Exotic Mortgage, when home buyers were eager to get any type of loan so they could grab houses before prices were out of reach. Then came 2007, the Year of Reckoning, when home prices went down and the foreclosure rate went up.

And 2008 will be the Year of the Refinance again, but for different reasons than those that drove the refi boom of 2003. Five years ago, low rates spurred people to refinance. In 2008, homeowners will refi because their adjustable-rate mortgages will hit their reset dates, sending rates skyward.

Know when your ARM resets

It's bad form to get caught by surprise when your adjustable-rate mortgage, or ARM, resets. Here's how to not let it happen to you.

First, you have to know what "reset" means. By definition, the rate on an adjustable-rate mortgage goes through at least one adjustment. Those adjustments are called resets. In recent years, the most common kinds of adjustables have been 3/1 and 5/1 ARMs.

With a 3/1 ARM, the initial, introductory rate lasts three years. Then, on the 37th month, the loan is reset for the first time and the rate is adjusted. Typically the rate is reset every 12 months after that. With a 5/1 ARM, the introductory rate lasts for five years and the first reset is at the 61st month.

To check on the reset date, pull out your copy of the loan contract from your well-organized home filing system. On the first two or three pages, there should be a section that details when the rate changes and how the new rate is determined. Look for a little headline that says something like, "Change dates."

The first reset date, and the timetable for subsequent resets, should be in that section.

Find out what your ARM's rate would be if it were reset this month

Just so you'll have an inkling of what you'll be facing, find out what would happen if the rate were to reset now. This step isn't necessary if the reset is a long way off. But if the rate is going to change in 2008, this is something to keep an eye on.

Go back to that loan contract. In the section that discloses the rate's change date, there should be an explanation of how the lender will calculate the new rate. The ARM's rate will be based on an index and a margin. The index is an independent interest rate that is widely known -- the yield on the one-year Treasury note, for example, or the six-month London Interbank Offered Rate (LIBOR).

The margin is a percentage that's added to the index. Let's say that your index is the one-year LIBOR, and that today it's exactly 5%. (It's not; we're just being hypothetical here.) And let's say your margin is 2.25%. If your ARM were to reset today, the new rate would be those numbers added together, or 7.25%.

The margin will be stated right there in the loan paperwork, although it might not use the word "margin" to describe it. As for the index, you can find many indexes online or in the business section of a newspaper.

Once you know the new rate and the amount you owe, figure your monthly principal and interest with an online mortgage calculator.

Home Affordability Calculator Yearly gross income $
Monthly debt payments $
Cash avail. for purchase $

Know if you should refinance sooner rather than later

To refinance, your house has to be worth more than the amount of the refinanced loan. Your equity is the difference between the house's market value and the amount you owe. If the house is worth $200,000 today and you owe $180,000, that $20,000 difference is the equity. With a $200,000 house, that would be 10% equity.

The more equity you have, the easier it's going to be to refinance. If you have less than 5% equity, it might be difficult to qualify for a refinanced mortgage. Difficult, but not impossible -- if you have a decent credit score. Preferably, you will have 10% equity; ideally, you'll have 20% or more. If your home has been losing value in this down market, you probably are aware of it from reading the newspapers, gossiping with neighbors and occasionally checking Zillow.com. In cases where the percentage of equity is in the single digits while home prices are falling, it might be a good idea to refinance months before the reset date. Wait too long and you might not be able to refi because you owe more than the house is worth.

Get ready to document your finances

During the housing boom, many home buyers eagerly got low-documentation and no-documentation (low-doc and no-doc) mortgages, in which they stated their incomes and assets, but didn't have to provide paperwork to document their personal finances.

Experts believe that most of these borrowers exaggerated their incomes because that was the only way they could get approved for their loans. Had they been required to submit W-2s and tax returns, they would have been turned down for loans because of insufficient income.

In 2007, the rising foreclosure rate was blamed partly on these borrowers. Most of them got ARMs, and they were able to scrape by and make their monthly payments during the introductory rate period. But when the ARMs reset, these borrowers found themselves falling behind. That trend will continue in 2008.

Spurred by self-preservation, lenders have cracked down, and now they're demanding documentation of income and assets from most borrowers. Don't be surprised if a lender wants not only W-2s and tax returns, but also bank and brokerage statements.

If you lied about your income to qualify for an ARM and now you can't refinance because of documentation requirements, you're not going to get any sympathy. When you signed the promissory note, you swore under penalty of perjury that you were telling the truth.

Buying? Bring a down payment

House prices are falling in many major markets. Your lender doesn't want to give you a big pile of money for a house that's going to be worth less than the loan balance in a few months. So your lender is going to want a cushion. The down payment is that cushion.

During the boom years, it was easy to buy a house with a down payment of 5% or 3% or even with no down payment at all. Those deals aren't as common anymore.

"I think we're going back to where 10% is going to be the standard for a down payment," says Mitch Ohlbaum, president of Legend Mortgage Corp., in Los Angeles.

What are your experiences?

A lifeline for delinquent mortgage borrowers? Maybe.

2008-02-14T05:29:00.000-08:00

This article was published on 2/14 on Bankrate.com

Mortgage lenders desperately want past-due borrowers to open the mail and pick up the phone.

That's the gist of the latest public-private collaboration to address the mortgage crisis. This week, the federal government and six big mortgage servicers announced Project Lifeline, billed by Treasury Secretary Henry Paulson as "a targeted outreach to homeowners 90 days or more delinquent that may lead to a pause in the foreclosure process."

The initiative is more about the outreach than the pause. Industry experts say that delaying the foreclosure sale of a house is standard procedure when the borrower is willing and able to discuss a workout of some kind. So what Project Lifeline really amounts to is the targeted outreach.

"Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem," Paulson says, adding: "Our hope is that today's announcement will reach them, and they will reach out immediately for help."

In other words, Project Lifeline's goal is for seriously delinquent borrowers to stop ignoring the letters and phone calls from their mortgage companies, and instead call and ask for help.

The project is the offspring of a previous initiative, called the Hope Now Alliance, which focuses on past-due borrowers with subprime mortgages. Hope Now set out guidelines to quickly sort which subprime borrowers don't need help, which can stay in their homes with some help and which are in hopeless situations. Under Hope Now, some subprime borrowers can get the introductory rates frozen on their subprime, adjustable-rate mortgages.

Help for all kinds of mortgages

Project Lifeline reaches out to a broader swath of borrowers. It covers all residential mortgages, not just subprime loans. The project comprises six of the biggest mortgage servicers: Countrywide, Wells Fargo, CitiMortgage, Chase Home Finance, Washington Mutual and Bank of America.

They will send letters to their customers who are at least 90 days past due, offering to put off a foreclosure sale by 30 days if the borrower:

-Calls within 10 days of receiving the letter.
-Expresses a desire to avoid foreclosure and keep the house.
-Agrees to financial counseling, if the lender deems it necessary.
-Provides detailed financial information.

Then both sides would have a few weeks to reach an agreement of some kind. Options would include a workout, in which the borrower pays extra each month and catches up on the late payments over time, or a modification, in which the rate or terms of the loan are changed. In rare cases, a modification could even include some debt forgiveness if the borrower owes more than the house is worth

Band-Aid, not a cure

But none of this is new. The exact same options are available after the borrower is 30 days and then 60 days past due. Mortgage servicers say their biggest problem is that they can't get in touch with delinquent borrowers. In about half of foreclosures, the borrower never communicates with the lender, despite the mortgage company's efforts.

At the 90-day delinquency period, borrowers "probably have gotten multiple letters from the lenders at this point. They've probably gotten multiple phone calls from the banks," says Lisa Breier Urban, a real estate lawyer in New York City. "It's possible that the tone will be softer in the Project Lifeline letter that will be sent out, and perhaps that will enable the consumer to want to respond to it."

Urban says she thinks that any help that the federal government can give to homeowners is beneficial.

"That being said, I'm not really sure a 30-day grace period for people who are in foreclosure is sufficient time to work out the terms of a deal. To me, it sounds more like a Band-Aid than an actual remedy. You're giving people a 30-day grace period, but what if you can't work something out? What then?"

Presumably, the deadlines aren't airtight. Few lenders are going to hang up on a borrower for calling two weeks after getting the letter, instead of responding within 10 days. Bottom line, Paulson says: "These are homeowners on the brink of losing their homes. The way I look at it is, everyone we save makes a difference."

Consumer help still murky

There are no details on what kinds of mortgage rescue options will be offered. Floyd Robinson, president of Bank of America's consumer real estate division, says, "We'll look at the individual circumstances and what we believe is appropriate."

Urban says: "I would have liked to have seen a structuring or some sort of guidelines in terms of what they were going to offer the consumer."

Jim Carr, chief operating officer of the National Community Reinvestment Coalition, calls Project Lifeline "a small step in the right direction" and, like Urban, wishes it were more ambitious. The NCRC proposes that the federal government buy delinquent loans from lenders at a steep discount "and make them available to servicers to actually go in and do what needs to be done to make those loans work."

In some cases where homeowners owe more than their houses are worth, part of the debt should be forgiven and the loan refinanced, Carr says. The notion of "short refinances" has been championed by at least one mortgage broker as well as by Sheila Bair, the chairman of the Federal Deposit Insurance Corp.

What do you think?

Homeowners tax relief plan aims for major improvements

2008-02-05T07:34:00.000-08:00

I found this article interesting. What are your thoughts on this plan for Lansing? Does Jackson have similar incentives? Would Jackson benefit from similar incentives?

Your Thoughts?

Published February 5, 2008
From Lansing State Journal ]

Mayor's strategy aims to go beyond routine fix-ups

A few years ago, a group of volunteers swooped in upon Denise McCune's Lansing property and did a gamut of home repairs for free.

McCune, 61, said there was no way she could have paid for the repairs on her own.

That is why Lansing Mayor Virg Bernero's proposal to extend tax breaks to typical home-owners has piqued McCune's interest. Bernero said during Wednesday's State of the City address that homeowners could receive 50 percent breaks on the increased taxes from "qualified improvements" and transformations of old, abandoned houses into owner-occupied homes.

"The tax break would be great, but again, you have to come up with the money to do (the improvements)," McCune said. "I don't have the money." And with Michigan's economy struggling, that issue is important.

City officials classify "qualified improvements" as additions and expansions that can cost thousands of dollars. "This goes beyond your general maintenance," acknowledged Bob Johnson, Lansing's Planning and Neighborhood Development director.
Roof repairs and new paint, which do not affect a home's taxable value, would not be considered, he said.

Still, some are applauding the residential tax break program Johnson said will be part of the spring budget negotiations between Bernero and the City Council.

"It's encouraging," said Joan Nelson, director of the Allen Neighborhood Center.

Older housing stock

A significant number of homes on Lansing's east side were built in the first half of the 20th century. "Old housing stock needs constant upkeep," Nelson said.

The mayor's housing task force told Bernero incentives were needed. "The housing stock is fairly aged," said member Lynne Martinez, who also is executive director of the Greater Lansing Housing Coalition. "Many people in the area are economically stressed, and there's a substantial number of rental properties."

Aid for neighborhoods

City officials hope the residential tax break program will inspire families to invest in Lansing and perhaps keep people in the city.

City Council President Brian Jeffries wants more specifics on how Bernero's proposal would work. But he likes the idea that the proposal could benefit and improve city property beyond Lansing's downtown. "This clearly is a program that is directed at the neighborhoods," Jeffries said. "The devil is in the details, and we haven't seen any of the details."

Tax Rebate Details Nearly Final....What will you do with it?

2008-01-25T06:49:00.000-08:00

The eternal question.... to save or spend!

By: Matt Mansfield
Marketing Director, ERA Reardon Realty

As many of you may have heard on the news, a tax rebate check may be headed to your mailbox in early Summer. Good news for sure! You will most likely receive between $600 and $1,800 depending on your marital status, yearly earnings and if you have cheldren. NOW, the real question for our flagging economy is, "Will it help"?

That depends on you...

Lawmakers are counting on the fact that you and everyone else who gets the check will go and blow it as "fun money" on electronics, meals and vacations, etc. The history of tax returns and rebates does point to the fact that most of you have done exactly that in the past. This however is not the past.

If you want my advice, and I am not sure if you do, I would save the money. The economy is weak and jobs are unpredictable. Put the money in the bank, especially if you are living paycheck-to-paycheck. There are many online savings accounts that will pay 4-5% interest!

While spending the money on an X-Box 360 or a flat screen TV does feel good in the short term, here is a list of just a few things that "creep up" on us that you should most likely save the money for:

1. Loss of a job. If you unexpectedly lose your job you will need as big of a cushion as possible to tide you over. Enough said...

2. Medical BIlls. If you get injured, you could have hefty bills to pay. Even a trip to the Dentist can get pricy.

3. Car repair. You just can never see this one coming, and you need your car.

4. Gas Prices. We could see prices of $4 per gallon this year. Keep a supplemental "gas fund" in the bank.

5. Paying down credit cards. Paying some extra dough on those high interest credit cards can save you money each month in the form of a lower payment, not to mention help your credit score ;)

6. Prom, Dances, Cars, etc for Teenagers. If you have a teenager, these expenses never stop.

7. Excess Mileage on your lease. If you chew up your lease miles, don't roll them over into your next lease! Pay them off at the end of the term with your saved money. Financing negative equity is a bad idea.

8. Christmas! Don't put gifts on your credit cards next year. Bank some cash and pay all of your Christmas bills on time!

9. Downpayment on a new car. You never know when your car will die. Coming up with a downpayment on short notice can mean not paying other bills.

10. Downpayment on a house!If you are looking to move or become a homeowner for the first time this year, start banking that downpayment now!. With historically low interst rates it could be the best investment you could make!

So there you have it...the choice is yours. Spend or Save? Only you can decide. Me, I am going to try and save it, but one of those unexpected expenses will unboubtedly creep up in the near future and take it from me. That's exactly why it will be waiting in my online savings account.

What do you think? Let me know by clicking on the "Comments" link under this story.

Have a good one,

Matt

Fix your finances in a day

2008-01-24T09:06:00.000-08:00

Setting aside a vacation day to focus on personal money tasks could end your procrastination and save you -- or make you -- quite a bit of money. Here's how.

By Liz Pulliam Weston
Article published on MSN Money

Money blogger J.D. Roth of Get Rich Slowly floated a great idea a few months ago: taking a personal "Money Day" to fix whatever's wrong with your finances.

Roth was inspired to write about the idea after taking a few hours off work to finally close his checking account at a much-hated bank and open one at a consumer-friendlier credit union. (For more on why switching may be a good idea, read "Ditch your bank for a credit union.")

"It was one of the best financial decisions I've ever made," Roth wrote. "If I could solve one financial problem in a few hours, just imagine what I could do with an entire day."

Talk back: What would you tackle during a day off devoted to finances?

Think about it: Most of us have way too much to do and too little time to do it, so difficult or mundane tasks often fall to the bottom of our task lists. Because financial chores can be both difficult and mundane, it's easy to put them off indefinitely, even though doing so can cost us.

Wouldn't it be nice to stop telling yourself you'll fix your financial problems when you "have the time" and actually get it done?

You could continue trying to work such tasks into a regular day or use the 24/7 availability of many online resources to do it on a weekend. But Roth argued for taking vacation time from work and devoting an entire weekday to the task. Not only are you more likely to have access to all the resources you need, but using up a day of paid leave time helps up the ante -- you'll want to make sure the day pays off for you.

Focus on the biggies
Here are some chores you might check off your list:

Set up a high-rate savings account. Having a savings cushion is a great idea in any economy but particularly smart when a downturn may be ahead. Typical banks pay less than 1% on their FDIC-insured savings accounts, but online banks may offer several percentage points more. You can find the highest-paying institutions using the tool at MSN Money's banking center. Once your account is set up, you can arrange an automatic transfer from your brick-and-mortar checking account.

If your resolution this year is to firm up your finances, Liz Pulliam Weston has some tips to boost your credit scores.

Start tracking your spending. If you don't know where the money goes, find out. You can:

Carry a notebook and pen to write down every expenditure.

Use personal finance software such as Money or Quicken to download your bank and credit card transactions into your computer. (Both offer free trials, Money for 60 days and Quicken for 30.)

Try an online tracker like Wesabe, Geezeo, Mint or Quicken Online. The first three are free; Quicken Online charges $2.99 a month after a 30-day free trial.

Once you know where you're spending your money, it's easier to find places to trim so you can redirect the money into debt repayment or savings.

Microsoft Office Online: Learn how to use Excel to track your banking and spending

Get a better interest rate on your credit cards. If you have credit card debt, paying it off should be among your priorities. That's easier to do if your interest rates aren't in the ionosphere. Read "Get a better deal . . . with a threat" for tactics that consistently win rate cuts for folks who have good credit. If your credit is bad or you've already fallen behind on your minimum payments, you may need to make an appointment with a legitimate credit counselor (read "The consumer's guide to credit counseling") and/or an experienced bankruptcy attorney to discuss your options.

Find a better rewards card. If you pay off your credit card balances every month, then make your diligence pay off with a card that matches the way you spend and the way you like to be rewarded. Read "The 15 most rewarding credit cards" to see which plastic leads the pack.

Continued: Fine-tune your 401(k)

Roll over those old 401(k)s. Change jobs a few times and you can leave a litter of 401(k) accounts behind in your wake. See if you can transfer the old accounts into your current employer's plan (that means a call to Human Resources) or roll them into an individual retirement account. Any brokerage or mutual fund family will help you with the paperwork to transfer the money into an existing IRA or set up one. Not sure where to start? Charles Schwab, E*Trade or TD Ameritrade can be good discount brokerage options, or try Vanguard, Fidelity or T. Rowe Price.

Look at retirement planning
Re-balance your 401(k). Many people pick their 401(k) investment options more or less at random and then never alter their haphazard choices. This approach can leave you overexposed to risk, hurt your returns or both. It's smarter to pick an asset allocation that reflects your tolerance for risk and time until retirement, then periodically re-balance. (Re-balancing means moving your investments around to restore the mix of stocks, bonds and cash to your original target mix.)

You can find answers to many of your 401(k) questions in MSN Money's Fast Answers, and MSN Money's 401(k) Quick Check will compare your available funds' performance and risk records. Your company may offer advice on its own. (See "Even bad 401(k) advice is better than none.") If your company doesn't provide investment help, you can find you can get specific fund recommendations from FinancialEngines.com for $39.95 a quarter.

Or you can take the easy way out and put all your money into your plan's "life cycle" or "target date maturity" fund. These funds pick the investments and asset allocation, re-balancing as necessary. For target-date funds, look for names like Retirement 2015 or Retirement 2030, which are supposed to align with the year you expect to retire. (Here is a list of Morningstar top-ranked funds with target dates 2000 to 2014, from 2015 to 2029 and 2030 and beyond.) Life-cycle funds tend to keep a steady asset allocation over time and may be divided into "conservative," "moderate" and "aggressive" options, while the target-date funds typically reduce risk exposure over time. Vanguard, Fidelity and T. Rowe Price offer well-reviewed funds of this type; if your plan doesn't have one of their options, look for a life-cycle or target-date fund with an expense ratio below 1%.

Getting around to insurance, college, wills
Raise your deductibles. One of the easiest ways to save money on car, home and even health insurance is to agree to pay more out of pocket before your coverage kicks in. If you have no savings, you might want to skip this step for now, but read "3 costly myths about insurance" to understand why savvy consumers choose higher deductibles and pay the smaller expenses on their own as soon as they can.

You might even reconsider whether you need anything more than liability on your car at all. (See "Drop the insurance on your clunker.")

Get some insurance quotes. Shopping for insurance is a pain. There's no way around that. But because you can potentially save hundreds or even thousands of dollars, it's worth the effort at least every few years. You can get an individual online quote for auto insurance, life insurance, health insurance or homeowners insurance, or you can check out sites such as Insure.com and Insweb.com. Have your current policies nearby. Note which insurers have been advertising heavily in your area; they might be offering breaks as well.

Set up a 529 college savings plan for your kid. Your financial priorities should be saving for your own retirement and paying off any toxic debt (credit cards, payday loans, etc.). But as college savings expert Joe Hurley of SavingForCollege.com notes, it's also a good idea to get into the habit of saving for your children's future education, even if it's just $25 a month. Fortunately, 529 plans will let you start with that little (or even less), as long as you sign up for automatic monthly transfers from your checking account. Morningstar.com compiles a list of the best and worst 529 savings plans that can help you decide what to look for (and to avoid). If your state offers a tax deduction, you might want to start with its plan. If you don't get a tax break, you can't go too far wrong with the age-weighted plans run by Vanguard, T. Rowe Price, TIAA-CREF or Fidelity.

Draft a will. If ever a task was designed to encourage procrastination, it's creating a will. But our hard-wired reluctance to consult our own mortality can create a nightmare for those we love -- and sometimes for ourselves (read "3 legal documents you shouldn't live without" for details).

If you have minor children, you need to do this now. Read "Who will take care of your kids if you die?" for the reasons why it's so important to get over your inertia.

If your resolution this year is to firm up your finances, Liz Pulliam Weston has some tips to boost your credit scores.

Quicken WillMaker can help you draft the necessary documents. If your situation isn't complicated, it may be all you need. But if you have a lot of debt, a contentious family, a sizable estate -- say, $1 million or above -- or other complicating factors, make an appointment with an estate-planning attorney for help.

You may have more financial tasks on your list, and getting everything done in a single day may not be possible. So highlight two to four tasks that are the most crucial and knock those out first. When you're done, share the results of your Money Day -- or your plans for the next one --

How to fix: Credit woes

2008-01-21T04:59:00.000-08:00

America's middle class is facing a debt crisis. To solve it, the US needs to rein in credit card companies and home lenders.

By Richard Conniff, MSN Money

The numbers coming out of the credit crisis are astonishingly ugly: The average American household now spends 14% of its disposable income just paying interest charges on mortgage and consumer debt; some sources estimate that up to 2 million families will lose their homes through foreclosure over the next two years.

Where have we seen trouble like this before? Oh, right -- during the Great Depression.

This time around, things started back in 2001, when the middle class went on a credit binge, borrowing against the rising equity in their homes as if it were a third household income (because even two incomes no longer seemed like enough).

Predatory lenders encouraged the trend, often pushing families to refinance into mortgages with deceptively low teaser rates. Now the real cost of those loans is becoming crushingly evident as the teaser rates expire and real-estate values decline.
So how do we get out of this mess? And how do we keep it from happening next time? Here are some of the reforms that have been proposed recently:

Ban "universal default." Credit card companies say it's not enough to pay your credit card bill promptly; you have to pay all your other bills on time, too. (If you didn't hear them say it, that's because it was buried in the 30 or 40 pages of fine print in your contract.) Even if you're just a month behind with the phone company, for instance, your credit card issuer can automatically jack up your interest rate as high as 32.5%. Critics say some companies actually target borrowers who are likely to get in trouble, because that's where the profit is.

Credit card companies say they're just protecting themselves by charging more for people whose changing financial circumstances make them riskier bets. They also say they're invoking this type of treatment, called "universal default," less often these days. But the language still appears in about 45% of credit contracts, according to Joe Ridout of the advocacy group Consumer Action, and it remains an "underhanded and fundamentally unfair" way to take advantage of people "who believe they are playing by the rules."

A proposed reform would allow the penalty interest rate but would require that it be based solely on a borrower's experience with the credit company.

Mandate strong underwriting standards. Legislation now before Congress would limit no-document loans. These quickie loans were originally meant to help real-estate investors, the self-employed and other short-term borrowers who were willing to pay a little more in order to minimize the paperwork hassle of a full loan

application. But they became a tool for selling pricey loans to unqualified borrowers -- typically with 2 or 3 points tacked onto the interest rate.

Proposed legislation would also require lenders to make sure borrowers are qualified to pay not just the short-term teaser rate, but also the potential maximum interest rate.

Make brokers pay for predatory loans. Under another proposed reform, all mortgage brokers would be required to post a surety bond of $50,000 -- like the guy who trims the tree or fixes the plumbing -- and to provide proof of $500,000 in individual net worth. That way, brokers who sell predatory loans could be held individually liable for a borrower's excess costs if unfair terms cause the deal to go sour. Video: When a child gets sick

Other legislation would make it easier for borrowers to sue deceptive lenders. Right now, mandatory binding arbitration, a standard part of almost all credit agreements, forces borrowers into private arbitration forums that can function, says Linda Sherry of Consumer Action, as "kangaroo courts."

If these proposed reforms sound promising, Elizabeth Warren warns not to get your hopes up. Warren, a Harvard law professor specializing in credit and bankruptcy issues, says the likelihood of the House, Senate and White House all signing off on significant reform is "probably near zero" -- because the lending industry "can make lots of political contributions and hire all the lobbyists in the world." Besides, Warren says, the legislative process is too cumbersome and erratic. She believes it takes independent regulators to develop the expertise necessary to respond quickly to changes in the marketplace. Which brings us to her big idea:

Create a Credit Product Safety Commission. A regulatory agency for the credit industry would function, says Warren, like the Consumer Product Safety Commission -- the federal agency that alerts us when lead paint turns up in toys from China or when a crib poses a choking hazard for toddlers.

But is the credit issue important enough to warrant the creation of a new bureaucracy?

"Whoa!" says Warren. "I'll tell you how important it is. It's consumer credit that is bringing the middle-class American family to its knees. It's the tricks-and-traps pricing model that offers an extraordinary amount of credit to every American family, and then -- for every family that does not handle it with the care and precision of a surgeon -- jerks the legs out from underneath that family and leaves them in enormous trouble.

"Consumer credit is as much a product as car seats

and children's toys, and it's a product that affects a family's well-being. You cannot buy a toaster in America today that has a one-in-10 chance of exploding and burning down your house. But you can buy a mortgage today that has a one-in-10 chance of exploding and costing a family their home."

Moreover, Warren says, the lender often knows on signing that the borrower faces that kind of risk -- and doesn't have to disclose the knowledge.

"In my view, it's just a safety issue," says Warren. American consumers should not have to "walk into the marketplace saying, 'Gee, this is a place where I could forfeit my entire economic security because of tricks and traps that even a specialist lawyer would have a hard time understanding.'"

John Hall, of the American Bankers Association, argues that banks are already thoroughly regulated by the Federal Reserve, the Office of Thrift Supervision and the Office of the Comptroller of the Currency, among others. But Warren replies that those agencies focus on the soundness and profitability of lenders, rather than on the safety of consumers.

Bypass the credit industry with social lending. If reform proves impossible, the free market offers an intriguing alternative: Consumers wary of doing business with traditional lenders could do business directly with one another instead.

"Social lending" Web sites like Prosper, LendingClub, Zopa, Fundable and Kiva -- still a minuscule part of the credit business -- facilitate peer-to-peer (or P2P) loans by cutting out the middleman and sometimes offering more-attractive rates to the principals in a transaction.

Of course it's smart to proceed cautiously with any new approach. Potential lenders should note that different sites have different rules for diversifying your investment and minimizing risk; some emphasize the social good you can accomplish, while others are more business-minded.

But it's worth noting that the investors in these sites include some of the same smart people who helped launch Skype, eBay, PayPal and Google. So social lending could yet become a major force in middle-class lives.

2008-01-10T06:56:00.000-08:00

New Law Helps Ease Pain for Some Facing Foreclosure or Short Sale

On December 20 President Bush signed into law H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007. While this piece of legislation is far from being a cure for all the ills caused by the recent and on-going meltdown in the real estate mortgage sector, it will certainly provide relief for some who are caught between declining home values and rising mortgage payments.

It has been widely noted lately that, in certain circumstances, parties undergoing foreclosure or short sales may also face tax bills on the "phantom income" generated by debt forgiveness. Here is a brief example: Suppose you had refinanced your home for $550,000 and that, now, when you have to sell, its value is only $500,000. Your lender might agree to a short sale, and discharge your mortgage debt even though the payoff was $50,000 short. The catch for you is that you might receive a 1099 from the lender, and be taxed on the $50,000 of debt forgiveness. You see why it is called "phantom income." (There are, in fact, generally good reasons for taxing debt forgiveness, but that is a whole other discussion.)

H.R. 3648 will provide relief from that kind of tax bite in certain specified situations. Beginning January 1, 2007 and lasting until January 1, 2010, certain discharges of mortgage indebtedness on a principal residence will be excluded from a taxpayer's gross income. As always, though, certain restrictions apply.

For one thing, the amount of indebtedness is limited to $2 million. For most of us folks, this will not present a problem.

Of greater relevance is the fact that, to be excluded, the debt discharged must be acquisition debt. That is, the mortgage must have been used to purchase the home. Suppose, for example, that you have lived in your home for twenty years, that you bought it back when it was "only" $200,000, and that, by now, you have refinanced it up to $650,000. Suppose, also, that your neighbor purchased his home just last year, and that he took out a $650,000 mortgage to finance the transaction. Now, both of you need to sell and your homes have decreased in value to $600,000. If you both are granted short sales by the lender, you will both have mortgage debt forgiveness of $50,000. Under H.R. 3648, his debt forgiveness will not be taxed because it was acquisition debt. Yours, however, will be. Bummer.

H.R. 3648 will also have relevance in situations where there is not a sale, but where the borrower and lender have restructured the loan and, along with other possibilities such as interest rate and/or payment reductions, the loan balance has been reduced. In such cases the debt forgiveness will not be taxed as ordinary income, but the amount of debt forgiveness will be applied to a reduction in the borrower's cost basis in the property. This way, it may subsequently be at least partially recaptured by the IRS in the form of capital gain tax.

Finally, we note that this tax exclusion only applies in situations where the debt forgiveness resulted from a situation related to a decline in the value of the property or to the financial condition of the borrower. You wouldn't benefit from it if your mortgage was reduced as a form of payment for services rendered to the lender (suppose you were the bank president).

H.R. 3648 won't solve all the problems out there, but it will certainly be of help to some. That is probably a good thing.

Mortgage Interest Rates Down Again!

2008-01-07T13:11:00.000-08:00

30-year fixed rate at 5.57%; 10-year Treasury yield at 3.87%

Monday, January 07, 2008

Source: Inman News

Long-term mortgage interest rates were down again Friday, and the benchmark 10-year Treasury bond yield dipped to 3.87 percent.

The 30-year fixed-rate average sank to 5.57 percent, and the 15-year fixed rate slid to 5.11 percent. The 1-year adjustable rate was down at 5.38 percent.

The 30-year Treasury bond yield edged up to 4.38 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

Fed Lowers Rates, Wall Street Tumbles

2007-12-12T06:50:00.000-08:00

As expected the Federal Reserve lowered interest rates yesterday, BUT investors were less than impressed with the quarter-point drop. Many in the investment community wanted more agressive action to correct the housing downturn and were asking for a half-point reduction.

This article is from MSN money:

WASHINGTON (AP) - The Federal Reserve dropped its most important interest rate to a nearly two-year low on Tuesday and left the door open to additional cuts to prevent a housing and credit meltdown from pushing the economy into a recession.

Fed Chairman Ben Bernanke and all but one of his colleagues agreed to trim the federal funds rate by one-quarter percentage point to 4.25 percent.

The rate reduction, the third this year, was needed to energize national economic growth, Fed officials said. The deepening housing slump is affecting the behavior of consumers and businesses alike, the Fed said.

"Economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks," the Fed said in a statement explaining its decision to cut rates again. The three rate cuts ordered thus far "should help promote moderate growth over time," the Fed added.

On Wall Street, stocks tumbled, reflecting disappointment among some investors who were hoping for a larger rate cut. The Dow Jones industrial plunged more than 200 points.

The funds rate affects many other interest rates charged to individuals and businesses and is the Fed's most potent tool for influencing economic activity.

In response, commercial banks, including Wachovia and Wells Fargo, lowered their prime lending rate by a corresponding amount, to 7.25 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.

The fact that the Fed's key rate was lowered again marked an about-face for the central bank. At its previous meeting in October, Fed officials hinted that their two rate cuts probably would be sufficient to help the economy survive the housing and credit stresses. Since then, however, financial conditions have deteriorated, prompting Bernanke to signal before Tuesday's meeting that another rate cut may be needed after all as an insurance policy against undue economic weakness.

As another bolstering move, the Fed on Tuesday also lowered its lending rates to banks by one-quarter percentage point. That was the fourth cut to the discount rate since mid-August.

"Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation," the Fed said in its statement.

Banks, financial companies and other investors who made loans to people with spotty credit or put money into securities backed by those subprime mortgages have lost billions of dollars. Investors in the U.S. and abroad have grown more wary of buying new debt, thereby aggravating the credit crunch.

Harder-to-get credit has thwarted would-be home buyers, intensifying the housing collapse. Foreclosures have soared to record highs. The number of unsold homes have piled up. Problems are expected to persist well into next year.

The 9-1 decision for a quarter-point reduction to the funds rate was opposed by Eric Rosengren, president of the Federal Reserve Bank of Boston. He preferred a bolder, half-percentage point cut.

"Fed's language clearly reflects a heightened degree of concern about the economic outlook," said Carl Tannenbaum, chief economist at LaSalle Bank. "They left open the possibility of additional rate reductions," he added. If the economy were to take a turn for the worse, another rate cut could come before the Fed's next scheduled meeting on Jan. 29-30, Tannbenbaum said.

The situation poses the biggest challenge yet to Bernanke, who took over the Fed in February 2006. Some analysts have questioned whether he waited too long to cut the Fed's key rate and whether he has acted aggressively enough to the nation's economic woes.

In September, the central bank dropped the funds rate for the first time in four years. Then it was a half-point drop; on Oct. 31 came a quarter-point cut.

The rationale behind the lower rates is that they will induce consumers and businesses to boost spending, invigorating economic activity. With Tuesday's reductions, both the funds rate and the prime rate are now at their lowest levels in nearly two years.

From July through September, the economy logged its best growth in four years. But it is expected to slow to a pace of just 1.5 percent or less over the final three months of the year as the housing collapse and credit crunch chill consumers, sapping overall economic growth. The odds of a recession have grown.

With growth cooling, the unemployment rate, now at a relatively low 4.7 percent, is expected to rise. Analysts expect the jobless rate to climb to 5 percent by early next year.

High oil prices could complicate the Fed's job of trying to keep the economy expanding and inflation low.

Oil prices, which had neared $100 a barrel, have moderated. But they are still high. High energy prices are a double-edged sword. They can slow economic activity and spread inflation if they cause the prices of lots of other goods and services to rise.

"Elevated energy and commodity prices, among other factors, may put upward pressure on inflation," the Fed said. "Inflation risks remain," the Fed said, adding that it "will continue to monitor inflation developments carefully." Some economists believed the Fed's decision to go with a moderate quarter-point cut was a nod to those inflation concerns

Deal near on mortgage defaults

2007-12-03T08:42:00.000-08:00

By MARTIN CRUTSINGER, AP Economics Writer
Source: Yahoo News

Treasury Secretary Henry Paulson said Monday he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.

Paulson told a national housing conference that this effort involved a "pragmatic response" to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring.

Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.

"We are working aggressively and quickly, utilizing available tools and creating new ones, to help financially responsible but struggling homeowners," Paulson said in a speech to a national housing conference sponsored by the Office of Thrift Supervision.

One of the outstanding issues is how long the freeze will last. Some government regulators are pushing for five to seven years but investors, who will see lower payments on the loans, are arguing for a shorter period of one to two years.

An estimated 2 million subprime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.

Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Paulson was not as specific in his remarks, saying only, "I am confident they will finalize these standards soon."

Paulson said he believed the mortgage industry would move to implement the new program quickly and would also adopt benchmarks to measure progress going forward.

"As a result, what was a fragmented, cumbersome process can be a coordinated effort which more quickly helps able homeowners," Paulson said.

The new program is being aimed at homeowners who have steady incomes and relatively clean repayment histories who could afford the lower introductory mortgage rates but cannot afford the higher adjusted rate.

The rate freeze is part of a three-pronged program the administration is pushing that also includes stepping up efforts to contact at-risk homeowners and encouraging creation of new programs that would embrace more affordable loans to homeowners who would like to refinance to mortgages with lower payments.

Paulson said that the administration is putting forward a new proposal to allow state and local governments more authority to temporarily broaden their tax-exempt bond programs to include mortgage refinancing.

He also called on Congress to pass a number of pending bills that would address the housing crisis in such ways as expanding the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Fannie Mae and Freddie Mac.

The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could trigger a full-blown recession.

Carbon Monoxide Safety Tips!

2007-11-20T12:28:00.000-08:00

Carbon Monoxide
Approximately 250 people in the United States died last year from the "Silent Killer" -- carbon monoxide (CO). This deadly gas is hard to detect because it is odorless, colorless and tasteless. UL recommends that consumers follow these steps to help prevent carbon monoxide poisoning:

1. Have a qualified technician inspect fuel-burning appliances at least once each year.

2. Fuel-burning appliances such as furnaces, hot water heaters and stoves require yearly maintenance. Over time, components can become damaged or deteriorate. A qualified technician can identify and repair problems with your fuel-burning appliances.

3. Be alert to the danger signs that signal a CO problem: streaks of carbon or soot around the service door of your fuel-burning appliances; the absence of a draft in your chimney; excessive rusting on flue pipes or appliance jackets; moisture collecting on the windows and walls of furnace rooms; fallen soot from the fireplace; small amounts of water leaking from the base of the chimney, vent or flue pipe; damaged or discolored bricks at the top of your chimney and rust on the portion of the vent pipe visible from outside your home.

4. Be aware that CO poisoning may be the cause of flu-like symptoms such as headaches, tightness of chest, dizziness, fatigue, confusion and breathing difficulties. Because CO poisoning often causes a victim's blood pressure to rise, the victim's skin may take on a pink or red cast.

5. Install a UL Listed CO detector outside sleeping areas. A UL Listed CO detector will sound an alarm before dangerous levels of CO accumulate. CO indicator cards and other devices are also intended to detect elevated levels of CO, but most are not equipped with an audible alarm, and cannot wake you at night, when most CO poisonings occur.

6. Read the manufacturer's instructions carefully before installing a CO detector. Do not place the detector within five feet of household chemicals. If your detector is wired directly into your home's electrical system, you should test it monthly. If your unit operates off of a battery, test the detector weekly and replace the battery at least once a year.

7. Avoid placing your detector directly on top of or directly across from fuel-burning appliances. These appliances will emit some CO when initially turned-on. Never use charcoal grills inside a home, tent, camper or unventilated garage. Don't leave vehicles running in an enclosed garage, even to "warm up" your car on a cold morning.

8. Know how to respond to a CO detector alarm. If your alarm sounds, immediately open windows and doors for ventilation. If anyone in the home is experiencing symptoms of CO poisoning -- headache, dizziness or other flu-like symptoms -- immediately evacuate the house and call the fire department. If no one is experiencing these symptoms, continue to ventilate, turn off fuel-burning appliances and call a qualified technician to inspect your heating system and appliances as soon as possible. Because you have provided ventilation, the CO buildup may have dissipated by the time help responds and your problem may appear to be temporarily solved. Do not operate any fuel-burning appliances until you have clearly identified the source of the problem. A CO detector alarm indicates elevated levels of CO in the home. Never ignore the alarm.

With Winter already here is is very important to be aware of Carbon Monoxide. I hope these tips help!

Bill would ease tax debt for many in foreclosure: Senate could vote on Stabenow plan during December

2007-11-09T08:26:00.000-08:00

This story was featured in the Lansing State Journal today. This could help a ton of people in our area. Will it pass? What do you think?

Mara Lee
State Journal correspondent

Sue McClung lost her $40,000-a-year secretarial job in May 2006. Then, as her job search dragged on for more than a year, she lost her $130,000 home in Lansing.
For seven months, she stayed current on the $1,000 monthly mortgage, thanks to unemployment benefits and a pension from a previous state job. But when benefits ran out, a $7.50-an-hour retail job wasn't enough to cover the payments and support herself and a daughter in college. "I just thought, 'I can't do this,' " she said. McClung, 54, now has a new job, and is renting a duplex in Mason.

But her nightmare isn't over.

Although her house, which is owned by the bank, now sits empty, it still could cost her.
If it sells for less than what she owed, McClung will owe taxes on the difference between her mortgage balance and the price the bank gets. Debt forgiveness is considered a loss to the bank and taxable income for the former owner.

A bill from U.S. Sen. Debbie Stabenow, D-Lansing, would change that. Under Stabenow's bill, people who lose their homes to foreclosure would be absolved from future tax liability on the sale of the home. Similar legislation passed the House last month, but it has yet to be considered in the Senate. Stabenow called this week for a vote on the bill, saying the tax change is urgently needed.

Many factors

Analysts at the Congressional Budget Office project 400,000 U.S. homeowners have been or will be in McClung's position this year and in the next two years because of a downturn in the housing market. Just this year, about 100,000 foreclosures have been initiated in Michigan, according to Realty-trac, a foreclosure research firm. Stabenow said owning a home is the American dream. "Too many people now are seeing that (dream) slip away," she said.
Around the country, sharply rising adjustable-rate mortgages among people with poor credit and small-scale real-estate investors have driven the rise in foreclosures. But in Michigan, Ohio and Indiana, subprime lending is only part of the problem - many borrowers also have trouble meeting their obligations because of unemployment and replacement jobs that pay less.
That's what happened to McClung. She found a new job as a receptionist and executive assistant in September, although it pays $10,000 less than her former job.
"I was picked out of 400 people," she said. "I'm very blessed."
But she worries about what will happen if the bill doesn't pass. How can she pay taxes on tens of thousands of dollars she never even saw?

Stabenow agrees.

"That makes absolutely no sense," she said.

Many other priorities

A vote on Stabenow's bill could come next month, but her proposal has to compete with many other must-do priorities before Christmas - including passing the budget for next year.
McClung, meanwhile, says owning a house as a single person is too hard, and she'll never do it again.
"I'm still recovering," she said.

Federal Reserve Lowers Interest Rate Again, not everyone agrees it is best..

2007-11-01T06:48:00.000-07:00

This story was reported in the Lansing State Journal today:

Fed's move might help amid foreclosure crisis. Interest rate cut to 4.5 percent

Staff and wire reports

The Federal Reserve's latest interest rate cut - its second reduction in six weeks - could eventually help the housing market and mid-Michigan consumers.

On Wednesday, the Fed cut the key federal funds rate one-quarter of a percentage point to 4.5 percent to help the economy weather a deepening housing slump.
Fed Chairman Ben Bernanke and all but one of his colleagues agreed to lower the key rate. Banks started to cut their prime lending rates for their best customers by a corresponding amount - to 7.5 percent in this case.

But Wednesday's rate cut won't automatically mean lower rates on home equity loans and credit cards, said Michigan State University economics professor Charles Ballard.

What the cut will do is make it easier for lending institutions to make loans to consumers by reducing the short-term interest loan rate charged to banks.
Banks, in turn, may lower interest rates and mortgage rates.
Michigan already has one of the worst foreclosure rates in the nation, according to RealtyTrac, an online marketplace of foreclosure properties.
According to RealtyTrac's quarterly report to be released today, Michigan had the fourth-highest number of foreclosure filings in the third quarter, with 1 in 104 homes in the state the subject of a default notice, auction sale notice or bank repossession. That is up 65.7 percent from the second quarter and 110.7 percent from a year earlier.

The mid-Michigan area fared slightly better than the state, with foreclosure filings made at the rate of one for every 110 homes in Ingham County, one for every 188 homes in Eaton County and one for every 209 homes in Clinton County.

Irvine, Calif.-based RealtyTrac's filings data includes default notices, auction sale notices and bank repossessions.

The Fed rate cut won't necessarily help people with adjustable rate mortgages. But it may make it easier for people to refinance with standard mortgages.
"Hopefully, this will help more people to quality to buy a house or buy more of a house," said Denny Moore, associate broker for Coldwell Banker Hubbell Real Estate Co. in Delta Township.

Lansing State Journal business writer Barbara Wieland and Associated Press writer Jeannine Aversa contributed to this story.

What do you think? There are critics that say this is just window dressing and that it furthur hurts the American dollar worldwide because no other countries want to finance our debt anymore. Will it help or just make people temporarily see some hope? Let us know your thoughts by clicking on the "Comments" link below.

Sorry for the delay!

2007-11-01T06:47:00.000-07:00

We had a few technical problems with the posting of our stories, but all is fixed. Sorry for the break!

Budget passed. Griffin & Simpson vote against tax increase.

2007-10-01T08:11:00.000-07:00

The following was reported in the Detroit Free Press this morning. What do you think? Right or Wrong? Martin Griffin & Mike Simpson from the jackson area voted aginst the tax increase (and their party vote.) Thoughts?

The shutdown of state government was halted early this morning when the Senate voted to expand the 6% sales tax to various services, the final major piece of a plan to erase a $1.75-billion deficit and balance a 2007-08 budget.

Democrat Lt. Gov. John Cherry cast the deciding vote for a 20-19 tally, the minimum needed for passage of an historic budget agreement that stopped what would have been a chaotic and embarrassing interruption of state services.

Three of 21 Republicans voted for the sales tax change, and only one of 17 Democrats opposed it.

“This budget agreement is the right solution for Michigan,” Gov. Jennifer Granholm said in a news release after the vote. “We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue. With the state back on solid financial footing, we can turn our focus to the critical task of jumpstarting our economy and creating new jobs.”

The vote came about 4 a.m., about three hours after the House and Senate voted to raise the 3.9% income tax rate to 4.35%, and approved controversial changes in school employee health insurance and pensions benefits aimed at reducing state costs.

The Senate vote to raise the income tax was also 20-19, with Cherry as the tie-breaker.

The two votes triggered a 30-day interim state budget which Gov. Jennifer Granholm said she would sign – if coupled with a tax increase – to avert a shutdown.

Granholm said 35,000 state workers threatened with temporary layoffs would be told to report to work this morning at their regular work times.

The votes concluded an epic, 17-day struggle over taxes and the size and importance of state government, as the Legislature met in numerous late-night sessions with no results.

Democratic leaders hailed the approved plan as a responsible compromise, while Republicans decried it as a massive tax on Michigan’s struggling taxpayers.

Senate Majority Leader Mike Bishop, R-Rochester, had held out for a smaller tax hike and bigger spending cuts. He said he was disappointed at the final outcome, but said some spending reforms were enacted that would reduce the cost to taxpayers over the long haul.

In the end, Bishop said, Granholm and Democrats who control the House were able to flex their political will for the tax increases.

He said work would begin now to cut $435 million from state spending and produce a permanent 2007-08 budget.

“Our members are going to work hard to make this the best state to work, live and raise a family,” Bishop said.

The tax increases will generate $1.35 billion in additional revenue for the state, with the promise of $435 million in spending cuts.

Those cuts will be decided in the next month, as the Legislature determines spending for public schools and the state’s 19 departments.

The flurry of final votes late Sunday night and early this morning capped yet another marathon session in a tumultuous two-and-a-half weeks.

Late Sunday, the Democrat-controlled House passed a bill to raise the state income tax from 3.9% to 4.35% by a 57-52 vote with just two Republicans — Chris Ward of Brighton and Ed Gaffney of Grosse Pointe Farms — voting for it. Only three Democrats — Lisa Wojno of Warren, Martin Griffin of Jackson and Mike Simpson of Liberty Township near Jackson — voted against it.

Gaffney said he is “not happy with what I did,” but it needed to be done to “break the logjam and put us on a course to keep government open.”

House Minority Leader Craig DeRoche, R-Novi, criticized the votes to raise the income tax and extend the sales tax on services.

"This was vote for bureaucracy and special interests,"DeRoche said."This is one of the largest spending sprees in Michigan history, it is a 10% increase in the size of the bureaucracy.

He added, "We stood on principle to cut and reform and have the state live within its means, like working families have to live within their means."

Granholm and her fellow Democrats argued more revenue is needed to head off deep cuts to schools and state services for health and public safety.

House Speaker Andy Dillon said the House had done its part to solve the $1.75-billion deficit, putting the issue in the Republican-controlled Senate’s hands.

Asked why the House couldn’t have approved a $1.35-billion tax increase — the size of the income and sales tax increases the House approved Sunday night — weeks ago, Dillon replied: “It’s a nature of the legislative body to wait till the last second the make tough decision.”

2007-09-20T09:50:00.000-07:00

This article was on MSN Money today and I thought it was helpful for those of you shopping for a mortgage..

8 big mortgage mistakes and how to avoid them

You can borrow too much or prepare too little. You can misjudge terms or overestimate your credit. With so much at stake, it’s no wonder so much can go wrong.

By Liz Pulliam Weston

Applying for a mortgage can be a daunting experience.

It's not enough that you're agreeing to take on the biggest debt of your life, one that represents two to three times your annual income. You're also confronted with piles of paperwork, flurries of fees and a tidal wave of terms, from amortization to title insurance, whose meaning is fuzzy at best." Whether it's a professor at Stanford or a ditch digger," said San Francisco mortgage broker Leon Huntting, "most people don't understand the loan process."
In this confusing and pressure-filled atmosphere, it's easy to make some mistakes. Here are some common ones that lenders and mortgage brokers see, and what you can do to prevent them.

Not fixing your credit

Mortgage brokers say they're confounded at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan. Before you even think about applying for a mortgage, obtain copies of your credit report and your FICO credit score. Your FICO score is the three-digit number that's used in 75% of mortgage-lending decisions. You can order your FICO score on the Web for a fee of $14.95, which includes a copy of your credit report. Doing this at least six months in advance should give you plenty of time to challenge any errors on your report and ensure that they're removed by the time you're ready to apply for a loan. You can also see the legitimate factors that are hurting your score and do something about them, such as paying off an overdue bill or paying down credit card debt.

Not looking for first-time home buyers' programs

These programs, typically sponsored by state, county or city governments, often offer better interest rates and terms than you'll find among private lenders, said mortgage consultant Diane St. James. Some are tailored for people with damaged credit, while most can help people with little saved for a down payment.
Some of these resources are listed on St. James' educational Web site, ABC Mortgage Consulting. You can also call the housing agencies for your state, county and city to see what they offer.

Not getting pre-approved for a loan

Many first-time borrowers confuse being "pre-qualified" with being "pre-approved." Pre-qualification is a pretty casual process, where a lender tells you how much money you probably can borrow based on how much money you make, how much debt you already have and how much cash you have for the down payment.
Getting pre-approval, by contrast, is a much more rigorous process and involves actually applying for a loan. You typically submit tax returns, pay stubs and other information. The lender verifies the information and checks your credit. If all goes well, the lender agrees in writing to make the loan.
In a hot or even warm real estate market, the house hunter who is only pre-qualified is a cooked goose. Home sellers and their agents give much more weight to offers being made by buyers who already have a loan lined up.

Borrowing too much money

Many people take out the biggest loan they possibly can, figuring that their incomes will eventually increase enough to make the payments comfortable. But few first-time buyers have any clear idea of how expensive homeownership can be. Not only will you shell out more for mortgage payments than you probably did for rent, but you'll also need to cover property taxes and homeowners insurance, as well as higher bills for utilities, maintenance and repairs than you faced as a renter.
Lenders are perfectly willing to let you overextend, knowing that you'll probably forgo vacations, retirement savings and new clothes for the kids rather than default on your mortgage.
"Mortgage money … is way too easy to get," said Ted Grose, president of the California Association of Mortgage Brokers. "People tend to overbuy … and that can really stress family life. It's also a formula for foreclosure."
Instead of going to the edge of affordability, consider limiting your housing costs -- mortgage payments, property taxes and homeowners insurance -- to 25% or so of your gross income. That's a much more sustainable level for most people, financial planners say, than the 33% lenders are typically willing to give you.

Not shopping around for rates and terms

Mortgage broker Allen Jackson of Bristol Home Loans in Bellflower, Calif., sees too many borrowers with decent credit getting stuck with loans meant for people with poor credit. So-called "subprime" loans are often more profitable, so less ethical mortgage brokers may push them.
If the borrower doesn't know what the prevailing interest rates are for someone with their credit standing, Jackson said, they can easily pay thousands of dollars more than they need to. You can see a listing of loan rates by credit score at MyFico.com, and a comprehensive listing of prevailing rates and fees can be found in MSN Money's Banking area.
Even people with a few dings on their credit can often qualify for better loans than they're typically offered, said Grose of 1st Mortgage Advisors in Los Angeles. He believes most of the people being shunted into government loan programs, such as Federal Housing Administration (FHA) loans, would pay less if they used mortgages now being offered by private-sector lenders.

Paying junk fees

Lenders can boost their profits by adding on a variety of fees. Some may be legitimate, some may be inflated and others may be pure fluff. Lenders may charge for "document preparation," for example, when all that involves typically is having a computer spit out a form. Or they may charge $150 for a credit check that cost them $15.
The time to challenge junk fees is not when you're about to sign the loan papers. Use a mortgage broker or call a number of lenders to compare their loans. Ask about the interest rate, the "points" charged to get that rate (each point is 1% of the total loan amount) and any other fees the lender charges. Then you can compare terms.
Once you've selected a lender, you'll be given a good-faith estimate of closing costs, which should include any fees being charged. Ask about each fee, and try to negotiate down the ones that seem excessive.
If the lender won't negotiate, "take that estimate to someone else," St. James said. "I'll bet they can beat it."
Unfortunately, this doesn't absolutely guarantee you won't face junk fees when it comes time to sign the loan. Many borrowers complain that they still face higher costs than were originally estimated, and so far the federal government has done little to prevent the practice. You can try challenging junk fees at this point, but most likely you'll have to bite the bullet and pay the fees to get your loan.

Not planning for closing costs

The day you're scheduled to get your loan, known as closing, you'll also be expected to write a check for a number of expenses, which typically include attorney's fees, taxes, title insurance, prepaid homeowners insurance, points and other lenders' fees. Together, these are known as closing costs, and the total can be eye-popping: somewhere between 2% to 7% of the selling price of the house. "Usually, when people see the closing costs, they're like a deer in the headlights," said mortgage broker Huntting, who works for Pacific Guarantee Mortgage. "It's much more than they ever think it's going to be."
Plan for closing costs by getting a good-faith estimate from your lender as early in the loan process as possible. Make sure you have the cash on hand (or rather, in your checking account) and that it doesn't "disappear" before closing because of sloppy bookkeeping or a last-minute emergency.

Not having enough cash on hand after closing

After borrowing too much, and scraping together every last dime for closing costs, many home buyers have nothing left in the bank to pay for anything unforeseen happening --and something unforeseen always happens.
"It costs so much just to move in," Grose said. "Then the water heater breaks."
Some people are so tapped out by the process, Jackson said, that they're not able to make their first mortgage payment on time. That's why "more and more lenders are requiring [borrowers have] three months' reserves after closing," Jackson said.
That's a smart idea for borrowers, anyway. Having three months' reserves, which means a fund equal to three months' worth of expenses, will help you handle the added costs of homeownership with much less stress.

30-year mortgage rates lowest in four months!

2007-09-14T11:24:00.000-07:00

Good news for current homowners looking to refinance OR new buyers! This story was published by the associated press today.

By: Martin Crutsinger
Associated Press

WASHINGTON - Rates on 30-year mortgages dropped this week to the lowest point in four months, providing some relief for people hoping to refinance their existing mortgages.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.31 percent this week, the lowest level since May 17, when 30-year mortgages averaged 6.21 percent. The rate had been 6.46 percent last week.

Ease to homeowners

All mortgage products surveyed by Freddie Mac showed declines this week. Frank Nothaft, the company's chief economist, said this should provide help to homeowners who are hoping to refinance existing adjustable rate loans that are resetting from low introductory "teaser" rates.

An estimated 2 million such loans will reset over the next 18 months, raising fears about a wave of delinquencies as homeowners are unable to meet the new payments. Top Bush administration officials met with major mortgage servicing companies on Wednesday to urge them to extend as much assistance as possible to homeowners trying to avoid default by refinancing into mortgages they can afford.

Cutting interest rate

Many economists believe the Federal Reserve will decide at its Tuesday meeting to cut a key interest rate in an effort to insulate the economy from recent turmoil in housing and financial markets.

Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 5.97 percent this week, down from 6.15 percent last week.

Rates on five-year adjustable rate mortgages averaged 6.17 percent, down from 6.32 percent, while one-year ARMs dropped to 5.66 percent. The mortgage rates do not include add-on fees known as points. Thirty-year mortgages carried a nationwide average fee of 0.5 point while 15-year mortgages carried an average fee of 0.4 point. Five-year ARMs had an average fee of 0.6 point and one-year ARMs carried an average fee of 0.8 point.

2007-09-06T12:30:00.000-07:00

Do you think a home-owner bailout is the right thing to do to help the mortgage and housing markets?

Read this article from MSN Money regarding speculative "bail-out" program for homewoners facing foreclosure. We would appreciate your thoughts or comments. Please click on the "comments" link under the article:

Bush's mortgage bailout just might work

If insider buying is any indication, home builders and financial-services providers expect dramatic reversals of fortune in the coming months.

By Jon Markman

With his stunning decision last week to let a federal housing agency guarantee mortgages of distressed homeowners, President Bush appears to have launched a "surge" in the financial markets to match the Pentagon's efforts in Iraq.

His plan seems straightforward:
First, use winks and nods to convince his top Federal Reserve appointee, Ben Bernanke, that it would be in the best interest of both men to slash interest-rate targets by as much as a percentage point, and to do it quickly so the move has time to work its magic before the next election.
Second, use every lever available in the executive branch to provide a direct, emphatic bailout to overstretched mortgage holders at risk of foreclosure.
And third, dump as much of the financial burden for paying for the rescue of voters, aka homeowners, on the nation's banks, rather than on taxpayers.
If the market comes to believe his plan will succeed -- and the plan just might -- you can expect a rally in the shares of financial-services providers and home builders that will stun even the bulls, with big-cap banks such as Wells Fargo (WFC, news, msgs) and SunTrust Banks (STI, news, msgs) rising as much as 25% over the next 12 months and some beaten-down home builders doubling in value.

Bush's surge solution for homeowners would, ironically, take a page from his father's rescue of Latin American governments and bankers in 1989 with a set of financial instruments that came to be known as Brady bonds. In that case, U.S. banks had lent billions of dollars to Latin American companies for use in economy building without obtaining sufficient collateral.
After thousands of loans went into default, it became clear that the money had been siphoned off by kleptocrats and crooks, and there was therefore no cash flow available for repayments. When U.S. banks clamored to be made whole, Latin American governments took over their citizens' obligations but did not have the ability to make payments, either.
Richard Bove, a banking analyst at brokerage Punk Ziegel, points out that the first Bush administration then had two choices: support U.S. banks and demand that the countries tax their people to pay back the loans, or blame the U.S. banks for making idiotic loans in the first place, force them to forgive the debts and let the crooks keep their booty.
President George H.W. Bush chose the latter in the interest of hemispheric amity and stability, and some creative geniuses in a Treasury Department headed by former Wall Street banker Nicholas Brady figured out a way for the governments of Mexico, Argentina and Brazil to convert the bad loans into dollar-denominated bonds that could be sold elsewhere. In effect, Bush 41 whisked bad credits off balance sheets south of the border with a stroke of a pen.

Now Bush 43 faces the same dilemma, only this time the bad loans are right here at home. His choices: He can thumb his nose at lenders who made stupid loans, castigate brainless homeowners who took out mortgages they could not repay, jail fraudster mortgage brokers who exploited a loosey-goosey system to generate exorbitant fees -- and stand smugly by as families in Republican strongholds across the West and South lose their homes. Or he could follow his dad's Brady bonds solution and basically forgive and forget by launching a mortgage bailout of unprecedented scope.

Based on Bush's announcement last week of a new Federal Housing Administration program to help around 80,000 at-risk homeowners obtain debt relief -- an effort modest in scope but stunning in its reversal of prior policy -- it's clear he will go for the latter in the interest of helping his party avoid a wipeout next November.
Bove notes that a precedent for a widespread mortgage-assistance program lies in the Emergency Home Finance Act of 1970, which established these mechanisms to help challenged households:
Banks would originate mortgage loans with 1% interest rates.
The Federal Housing Administration and Department of Veterans Affairs would insure the loans against loss.
The Government National Mortgage Association, aka Ginnie Mae, would buy the mortgages at par from the banks, allowing the banks to make a small profit.
Ginnie Mae, taking a sizable loss, would then sell these loans to Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs) at a discount so that the buyers would earn reasonable yields.
Fannie and Freddie would fund these purchases with low-cost, government-guaranteed debt.
As a result, Bove speculates, tens of thousands of at-risk homeowners would get to keep their homes. Ginnie Mae would lose tens of billions of dollars that would be repaid by banks and taxpayers at a pace and in a manner similar to the Iraq reconstruction effort. Fannie Mae and Freddie Mac would end up with huge increases in the sizes of their portfolios. And, most importantly, the nationwide housing collapse would disappear as an election theme for Democrats.
Although this may seem a bit far-fetched, insiders in the financial services and home-building industries are buying their own companies' shares these days at a record pace -- essentially betting that something like this scenario will transpire. Home-building companies' executives bought $15.9 million worth of their firms' annihilated shares in August, the largest monthly purchase in the sector since Thomson Financial started keeping track in 1990.
The last time that insiders even came close to this level of buying, in September 2001, the sector rose 55% in value over the next six months while the S&P 500 Index ($INX) advanced 10%. Thomson analysts suggest raw valuation is a factor in insiders' zeal for their stocks -- as the price-to-book value of the sector hit 0.75 last month, the lowest since October 1990 -- but clearly a larger motivating force is at work.

The bottom line is that Bush has ample tools at his disposal to make the foreclosure crisis vanish if he is willing to make a financial and political commitment on a par with his pledge to stabilize Iraq. With almost one in every 7.5 housing units in the United States empty due to overbuilding during the easy-money years, it would take years for enough demand to emerge under normal conditions to soak up supply. But don't underestimate the president's capacity and motivation to speed up the process with a surge of looser credit and check writing.

Wells Fargo, now trading at $36.50 a share, could easily go to $50 in a year in this scenario, as its competition from the likes of Countrywide Financial (CFC, news, msgs) and lesser mortgage bankers and brokers have been thrashed and it has its pick of the best talent fleeing those firms. SunTrust, now trading at $78, could go to $95. . . .
The three home builders with the most insider buying are Meritage Homes (MTH, news, msgs), where one insider bought $12.9 million in shares in August; Brookfield Homes (BHS, news, msgs), where three insiders bought $1.4 million; and Lennar (LEN, news, msgs), where one insider spent $845,100. Shares of these three builders are down 63%, 49% and 46%, respectively.

ERA Summer Wine Down was a huge success!

2007-08-29T07:12:00.000-07:00

Thank you to everyone that supported our annual charity event for MDA! The night was great and we were able to raise $6500 to donate to MDA local families! Thanks again, we truly appreciate it and we look forward to seeing you next year.

Fixed-rate mortgage or ARM? How do you choose?

2007-08-20T09:39:00.000-07:00

Where you are getting ready to purchase a home there is always a decision to be made on what type of loan will be best for your situation. With the proliferation of Adjustable Rate Mortgages or ARMs in the past 5 years, the Federal Reserve has posted a tool on it's website to help buyers compare the short AND long term costs of both types of funding.

I checked this tool out and it works pretty well. Make sure you have your propesed rates from your lender before you sit down to use this. You can also just make up rates or use current market rates if you want. The tool does make you enter a "projected" adjustment on your ARM after the initial period. That is, how many percentage points do you think interest rates will go up or down during the "fixed" period. I used +1% & +2% as tests. I did not use a negative percentage because I don't expect interest rates to go down too much.

If you are looking into financing currently, you may want to check this tool out. Maybe you could have your mortgage advisor go through it with you as a way to help decide what option fits the best!

Here is the link to the Mortgage Comparison Calculator on the Federal Reserve website:

https://www.federalreserve.gov/apps/mortcalc/

It's time for the 2nd Annual ERA Reardon Summer Wine Down!

2007-08-15T05:38:00.000-07:00

Once again it's time for us to host our yearly MDA fundraiser! With your help last year we raised over $5,000 for local MDA charities. We plan on raising even more this year! Here are the details:

August 23rd, 2007
5:00 - 7:30 PM
Bella Notte Ristorante, 3rd floor

Appetizers, wine tasting, live music, silent auction & more!
Tickets are $25 each

You can purchase tickets by calling Matt at 517-782-2996, email him at matthew.mansfield@era.com OR just reply to this post and leave your contact information!

We are also looking for item donations for our silent auction, so if you or your company could donate an item that would be great! Call Matt if you can help.

Thanks for your continued support of our charity events!

2007 Relay For Life is a huge success for Team ERA!

2007-08-07T08:22:00.000-07:00

This weekend, Team ERA participated in the Jackson Realy For Life. This is our 14th year participating in the event, and we were able to raise over $4000 for the American Cancer Society! We all had a great time walking and seeing friends from past years. A special thanks to anyone who helped us to reach our goals this year! We appreciate your support.

The US Housing Price Roller Coaster, 1890-Present....Literally!

2007-07-27T12:11:00.000-07:00

The website speculativebubble.com has charted US home prices (adjusted for inflation) from 1890 to 2007, then they put the data into Roller Coaster Tycoon 3 and built and "virtual" roller coaster that you can ride. Talk about your unique spins on the housing market! Watch the video and then leave us your thoughts by clicking on the "Comments" link below this story.

It is possible that they have too much time on their hands, but it is pretty fun!

New website lets people browse local HUD foreclosure listings!

2007-07-19T12:40:00.000-07:00

There is a new website available that lets people search all of the foreclosure listings that are offered through HUD (Michigan Department of Housing & Urban Development). Not all foreclosures in jackson will be on the site, but the inventory that HUD has (foreclosures that were funded by an FHA-insured mortgage) is quite extensive and covers all price ranges. If you see a home that you are interested in touring, just call us and we can show it to you! If you like it, we can submit your bid online. With all of the great deals out there right now, this could be a good opportunity to find some investment properties or maybe just get a great price on a home for yourself. Here is the link to the search page:

http://sales.clfres.com/SearchListings.aspx

If you have any questions on this site or the buying process, we have many Realtors who have experience in the foreclosure market. Simply post a question by clicking on the "Comments" link below this article, or send us an email at: info@erareardonrealty.com or you can simply call our office at 517-782-2996. Thanks!

New loan helps buyers make improvements to their new home

2007-07-09T18:06:00.000-07:00

I thought that this was an interesting loan product that everyone might like to hear about! With all of the city homes that are for sale, this is a flexible product that can help to make necessary improvements. This information is courtesy of Wendy Robison at Providence Mortgage Company:

The FHA Streamline 203k is a loan designed for borrowers to finance the cost of minor repairs/rehab work for a property at the time of purchase. Before the loan is closed the borrower will obtain estimates from contractors/retailers for items and work that needs to be done. The lender will add the cost of these estimates to the price of the home and hold the money for the repairs in escrow to be drawn on as the work is done. This feature of the loan works much like a construction loan.

FHA Streamline 203K highlights:
Designed for borrowers who wish to purchase a home that needs minor rehabilitation work

Maximum $35,000 in repairs/rehab - no minimum

Choose your own contractor

Mortgage company approves the proposed work plan, contractor and cost estimates and works directly with borrower and contractor throughout draw process.

This program can be used for the following repair/rehab items:

Repair/Replacement roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of existing flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Exterior and interior painting
Weatherization: including storm windows and doors, insulation, weather stripping, etc.
Appliances including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens.
Improvement for accessibility fo rpersons with disabilities
Lead based paint stabilization or abatement
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repiars
Basement waterproofing
Window and door replacements and exterior wall residing
Septic systems and/or well repair or replacement

If you have thoughts or questions about this product, please call our office at 517-782-2996 or just simply click on the "comments" link below this article and I will get back with you right away!

Mid Michigan cities among the most affordable in the nation

2007-07-02T09:29:00.000-07:00

Excerpts from CNNMoney.com story published today:

The most affordable U.S. housing markets

The Midwest has the most affordable housing. California has the least.

By Les Christie, CNNMoney.com staff writer
July 1 2007: 2:37 PM EDT

NEW YORK (CNNMoney.com) -- The housing slump has its benefits; affordability improved in many metro areas across the nation during the first three months of this year.
According to a report from Wells Fargo Bank and the National Association of Home Builders (NAHB), about 44 percent of all homes sold in the United States during the first three months of the year were affordable to families earning the median household income for the area they lived in.

NAHB President Brian Catalde, said, "This is up from 41.6 percent of homes sold in the final quarter of 2006, and is likely the result of lower house prices as well as the very favorable financing conditions that existed at the beginning of this year."

The Indianapolis area, where the median home cost $116,000, was the most affordable major U.S. market for the period, but joining it at number one this time was the Youngstown, Ohio metro area ($78,000). In both places, the index judged affordable 89.0 percent of the homes sold.

A smaller market area, Kokomo, Indiana ($93,000), led all cities; 93.5 percent of all homes sold there could be bought by median income households. Also highly affordable were Lansing, Michigan ($100,000, 91.1 percent) and Lima, Ohio ($78,000, 90.4 percent).

The top 13 markets were all located in the Midwest region. Cumberland, Maryland ($81,000, 86.8 percent), representing the South, was the highest ranked city in the rest of the United States. Elmira, New York ($69,000, 86.7 percent) was close behind. The most affordable western city was Pueblo, Colorado ($115,000, 76.3 percent).

California dominated the list of most unaffordable cities with just 3.0 percent of Los Angeles residents able to buy the median home, priced at $525,000. In nearby Santa Ana ($610,000, 4.4 percent) and Salinas ($569,000, 4.6 percent), conditions weren't much better.
The New York metro are, where the median home cost $500,000, was the least affordable place outside California. It recorded an affordability index score of 6.0 percent. Miami ($288,000, 10.0 percent) trailed all other southern cities and Chicago ($248,000, 46.5 percent) brought up the rear in the Midwest.

The Lansing area, Battle Creek, Flint, Detroit, Saginaw, Bay City & Monroe Areas of Michigan all made the top 15 cities, with Lansing being #2 in the country with 91.1% of homes being affordable to a family with the median household income for the area ($64,000). Jackson was not in on the list due to market size, but I would anticipate it to be very high on the list if it had been.

So what does this all mean? Well, if you are buying a home soon you can look forward to favorable pricing! Home prices have moderated in the past 12 months, bringing them in line with buyer expectations. This is a positive step toward turning around the housing market. Affordable housing will encourage more first-time buyers, and possibly more out of town buyers.

Let us know what you think! Click on the "comments" link below and give us your thoughts.

Thanks!

ERA Reardon Realty

Mortgage rates drop for second week

2007-07-02T08:17:00.000-07:00

This release from CNNMoney.com was from June 28th:

NEW YORK (CNNMoney.com) -- Mortgage rates eased slightly for the second week in a row after taking their biggest jump in four years two weeks ago, Freddie Mac said Thursday.
The government-sponsored loan buyer said the average rate on a 30-year fixed-rate loan slipped to 6.67 percent for the week ending June 28, from 6.69 percent the previous week.

Relay For Life Bowling Event was a huge success!

2007-07-02T07:22:00.000-07:00

Thanks to everyone who participated in the charity bowling event! We had fun and raise some money for a terrific cause. We look forward to holding this event again next year, so please look for info next June. If you attended the event, please leave us your thoughts or comments by clicking on the "comments" link below. Thanks again!

ERA Reardon Realty

ERA Reardon announces charity Bowling event to benefit Relay For Life!

2007-06-15T06:30:00.000-07:00

We are pleased to announce that we will be holding a Bowling fundraiser June 28th to benefit our Relay For Life team! The event will be held at Center Stage Lanes in Michigan Center. Bowling times will be from 4PM to 10PM. No reservations are necessary, just show up and bowl with your family friends or co-workers. The cost is $5 per game and includes shoe rental. A full menu of food & drinks will be available for purchase during the event. Center Stage Lanes has ben very generous in offering us their entire bowling alley for the evening to help raise money so please support the event if you can! For more information, please call Matt Mansfield at 517-782-2996 for details!

Below is a link to map & directions to Center Stage Lanes:

Map & Directions

Please leave us your thoughts or comments by clicking on the "Comments" link below.

Relay For Life charity garage sale is a huge success!

2007-06-04T10:51:00.000-07:00

Thanks to everyone who donated items and to all of the shoppers that turned out last Saturday to help us raise money for our Relay Team! With your help we raised over $1000 to help find a cure for Cancer. Our goal this year is to raise $5000 before the August 4th event. If you want to help by joining our team or donating funds toward our goal, please visit www.reardonrelay.com

Please leave us your thoughts or comments by clicking on the "Comments" link below.

Thanks again!

Rick Reardon

How much home can you afford?

2007-06-04T10:18:00.000-07:00

You probably hear many different opinions from different people on how much home you can afford. That is because there are so many different factors that need to be considered, and everyone's situation is different.

It is very important to not "over-buy" when purchasing a home. The last thing you want is to be tied down by your mortgage payment. I recently found this handy calculator on MSN Money that can help guide you in deciding how much home to buy. It calculates a suggested home price based on:

Income
Monthly Expenses
Length of Mortgage
Interest Rate
Down Payment
Credit Rating

I tried it out and it seems to work pretty well. Of course, a lending professional is the best guide for deciding what price is right for you, but this might be a good start. Give it a try and let me know if it work for you. Here is the link address to use the calculator:

http://articles.moneycentral.msn.com/Banking/Loan/HomeAffordabilityCalculator.aspx

Thanks!

Rick Reardon

Welcome to the ERA Reardon Real Estate Blog!

2007-06-04T09:32:00.000-07:00

Hi everyone!

I hope that you enjoy our new site. We will be keeping the site up-to-date with the latest industry news, local stories and updates for the Real Estate industry and ERA Reardon Realty.

For those of you that are as new to this as we are, I will start with the basics:

Q: What is a "blog"?

A: It is a "web log" or interactive online page where you can share news, pictures and videos. The greatest part is that anyone can comment or ask questions about the stories that we post!

We feel that this is a great way to keep all of you updated on the current market. Whether you are buying or selling a home currently or you are just beginning your home search, please check back every week for new content. Current customers please use this as a way to communicate with us as well! Feel free to leave comments on any of our stories. We would love to hear your thoughts!

Thanks!

Rick Reardon

Owner, ERA Reardon Realty

ERA Reardon Real Estate Blog

RT @ASmarterERA: Don

Gov't unveils plan to shrink some home loans

Top 10 Home Updates That Pay Off

In a tough market, these projects are your best bet

Update #1: Start with your front door >>

Michigan Ranks 5th in the U.S. in Foreclosures

12% of eligible borrowers helped by Obama plan

Michigan Ranks 9th in the U.S. in Number of "1st Time Homebuyer Tax Credits" claimed so far

Pending home sales hit 6th straight increase

Pending Home Sales Rise for the Fifth Consecutive Month

New Bills Introduced to extend/change "Homebuyer Tax Credit"

The verdict: "Hope for Homeowners" plan starting to get traction..

Existing Home Sales for April Up 2.9%

New survey says 75% of people think it is a good time to buy a home!

New Hope for "Hope for Homeowners" Program?

Fed anounces expanded help to stem foreclosures

U.S. mortgage applications climb, rates at fresh low

Lansing/East Lansing Area ranked #1 most affordable metro area in the US by CNBC!

Mortgage rates turn lower this week

City of Jackson to receive about $1.8 million in stimulus funds for neighborhoods, homelessness prevention

Stimulus Bill Passed: How will it effect you?

Pending home sales post increase of 6.3 pct

Foreclosure Filing Down in Jackson County

More First-Time Buyers Entering the Market

First time home buyers...

New $7500 Tax Credit for First Time Home Buyers!

Jackson Police: Keep an eye on empty houses

Property Tax Relief for Some Homeowners!

Top 10 Seller Short Sale Questions..Answered

Governor Granholm Signs "Save The Dream" Legislation

Credit Clampdown for Prospective Homeowners

Restraints on Mortgage Lenders Fannie Mae and Freddie Mac are Loosened

Forbes Magazine Notices Jackson!

Fed Gets Agressive, Stock Market Responds

Citizens Fighting Assesments

Foreclosure "Crisis" Overblown? Yes, says MSN.com

Savvy alternatives to tax refund loans!

5 mortgage moves for 2008

A lifeline for delinquent mortgage borrowers? Maybe.

Homeowners tax relief plan aims for major improvements

Tax Rebate Details Nearly Final....What will you do with it?

Fix your finances in a day

How to fix: Credit woes

Mortgage Interest Rates Down Again!

Fed Lowers Rates, Wall Street Tumbles

Deal near on mortgage defaults

Carbon Monoxide Safety Tips!

Bill would ease tax debt for many in foreclosure: Senate could vote on Stabenow plan during December

Federal Reserve Lowers Interest Rate Again, not everyone agrees it is best..

Sorry for the delay!

Budget passed. Griffin & Simpson vote against tax increase.

30-year mortgage rates lowest in four months!

ERA Summer Wine Down was a huge success!

Fixed-rate mortgage or ARM? How do you choose?

It's time for the 2nd Annual ERA Reardon Summer Wine Down!

2007 Relay For Life is a huge success for Team ERA!

The US Housing Price Roller Coaster, 1890-Present....Literally!

New website lets people browse local HUD foreclosure listings!

New loan helps buyers make improvements to their new home

Mid Michigan cities among the most affordable in the nation

Mortgage rates drop for second week

Relay For Life Bowling Event was a huge success!

ERA Reardon announces charity Bowling event to benefit Relay For Life!

Relay For Life charity garage sale is a huge success!

How much home can you afford?

Welcome to the ERA Reardon Real Estate Blog!