K J Mehmood Roanoke Real Estate

Single Story For Sale in Melrose

K J Mehmood — Wed, 28 Dec 2011 20:11:00 GMT

• 2,700 sq. ft. single story - MLS® $179,950 - Priced Below Market Value

Melrose, Roanoke - Excellent location for your business. Great corner lot. Currently one side of the building is leased to 2 Brothers Deli. Leased for $1100.00 per month. Other half is vacant . New owner can run own business from the un-rented half. Priced below market value. Bring offers.

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Single Story For Sale in North Roanoke County

K J Mehmood — Sat, 17 Dec 2011 22:44:00 GMT

Home is competitively priced to sell!

• 2 bath, 3 bdrm single story "Single level living at it's best " - MLS® $214,950 - Reduced $10,000

North Roanoke County, Roanoke County - This is the perfect Ranch style Patio home. Single level living at it's best in North Roanoke County 1928 sqft. Beautiful Great Room with a Vaulted Ceiling.Over-sized Master Suite.with a walk-in closet. Very clean home- move-in condition!
Directions: From I581 to Peters Creek Road North. Left onto Barrens Road, Right onto New Barrens Court.

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Bi-Level For Sale in Salem

K J Mehmood — Sat, 17 Dec 2011 22:41:00 GMT

• 2,408 sq. ft., 3 bath, 4 bdrm bi-level "Lower level can be In-Law suite " - MLS® $219,950 - Large Level Lot

Salem, Virginia Beach - Large corner lot, oversize detached garage Salem location.Well-maintained Split-Foyer with possible separate In-Law suite downstairs.Bring offers.
Private Remarks: Pool will pass ''As Is'' Front walkway will be repaired before closing.
Directions: COLORADO TO KIMBALL TO 602 ON LEFT GREAT CORNER LOT.
Call (540) 309-3998 ) OR (540) 309-4023 for personal Tour.

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Ranch For Sale in Blue Ridge

K J Mehmood — Sat, 17 Dec 2011 22:39:00 GMT

33,550 Below Tax Assessment

• 3,518 sq. ft., 4 bath, 4 bdrm ranch "Ranch With Mountain Views" - MLS® $274,950 - Priced 33,550 Below Tax

Blue Ridge, Botetourt County - Lovely, spacious Ranch style home in Botetourt County with an open floor plan and large bedrooms. Also offers eat in kitchen a large family room and dining area. Large 2 car garage, and lots of storage space.The views from the large deck are beautiful. Seller will consider Lease/Purchase option.
Directions: 460 EAST JUST PAST BLUE RIDGE PARKWAY.MAKE ''U'' TURN RIGHT MORNING DOVE LANE SECOND HOUSE ON LEFT

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Price Reduced on 1805 Peters Creek RD NW in Roanoke City

K J Mehmood — Thu, 17 Nov 2011 15:32:00 GMT

Roanoke City, Roanoke - Announcing a price reduction on 1805 Peters Creek RD NW, a 15,832 sq. ft., 2 bath single story. Now MLS® $329,950 - Corner Lot.

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DAILY REAL ESTATE NEWS, FHA, Fannie, Freddie seek new options to offload REO properties

K J Mehmood — Thu, 22 Sep 2011 18:05:00 GMT

By Tom Kelly
Inman News™

Lenders have always viewed real estate investors with a wary eye. It seems all investors are grouped into flip-and-run speculators with little skin in the game, no plan for maintenance and repair, and yet huge expectations for short-term profits.

Lenders even raise interest rates on investment properties, feeling their risk in the deal should be greater than an owner-occupied property. Because the owner does not live there, it's logical to assume the property will receive less care and attention.

Now, the situation apparently has changed -- at least for investors who want to buy groups of foreclosed properties. In fact, they might even be viewed as saviors.

Recently, the Federal Housing Finance Agency (FHFA), the U.S. Treasury Department and the Department of Housing and Urban Development (HUD) announced they would seek new options for selling single-family real estate owned (REO) properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).

"While the enterprises (Fannie and Freddie) will continue to market individual REO properties for sale, FHFA and the enterprises seek input on possible pooling of REO properties in situations where such pooling, combined with private management, may reduce enterprise credit losses and help stabilize neighborhoods and home values," said Edward J. DeMarco, FHFA acting director.

"Partnerships involving enterprise properties may reduce taxpayer losses and meet the enterprises' responsibility to bring stability and liquidity to housing markets. We seek input on these important questions."

For years, at least one investor group has encouraged Fannie and Freddie to allocate funds for the rehabilitation of their foreclosed properties, then set aside another pot of cash to help subsidize the financing. That way, they could self-finance their newly refurbished inventory with low down payments, reduced closing costs and quick turn-around times while removing troubled assets.

That didn't happen. Now, these government-sponsored entities have less cash and a massive REO portfolio.

Five years ago, Tom DiMercurio, a veteran of 37 years in the foreclosure business, was the first to label and predict a "foreclosure tsunami" for several areas of the country. While he says some markets have yet to hit rock bottom, he also believes this is a great time for long-term investors to begin picking up single-family homes for their portfolios.

However, potential buyers must be genuine players and not speculators, and be prepared to do factual research if they are interested in purchasing an additional piece of real estate in a specific area.

"The residential rental market has been very strong because there have been so many foreclosures," DiMercurio said. "But anybody who wants to buy a property in addition to their primary residence really needs to go back to basics. The value of a piece of real estate must be based on the net income it can produce. If it's sustainable with a modest -- yet realistic -- down payment, then it becomes a viable candidate for investment."

The government is looking for approaches that achieve a reduction in foreclosure volume but also for current renters to become homeowners -- and to assist former homeowners with affordable rentals in a cost-effective manner.

There have been examples that have worked. For example, from 1986 to 1988, one-third of all Fannie Mae's national REO inventory was situated in five Houston-area counties. The sheer volume of localized foreclosures and the severity of the absolute value decline rivaled the worst financial performance in U.S. history.

The Houston slump was brought on by a declining oil industry. The resale market for REOs was challenged by a widely held public view that foreclosed homes were surely the result of a building defect or other shortcoming that made them less desirable than a regular (nonforeclosure) residential property.

Working with Fannie Mae in Washington, D.C., a group conceived a plan to brand "Fannie Mae as the Best Housekeeper in Houston," celebrating the like-new condition of restored Fannie Mae-acquired properties.

Offered with below-market, fixed interest rates, a maximum of a 97 percent loan-to-value for owner-occupants, reduced closing costs, 30-day closings, and refurbishment to a like-new condition, Fannie Mae homes were extremely popular in the Houston residential real estate market for several years.

To accelerate the rehabilitation process, Fannie Mae's Houston office operated like a consolidated real estate disposition and construction company. A contractor/builder partner bought carpet, paint and roofing material by the container load directly from the warehouse, reducing the costs of refurbishing the foreclosed homes.

There are proven methods to improve and sell foreclosed properties. Given the severity of the problem, why has it taken so long for the powers that be to reach out for ideas?

Tom Kelly's new e-book, "Bargains Beyond the Border: Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement," is available online at Apple's iBookstore, Amazon.com, Sony's Reader Store, Barnes & Noble, Kobo, Diesel eBook Store, and Google Editions.

Contact Tom Kelly:
Email	Letter to the Editor

Open House in North Roanoke County on Sunday

K J Mehmood — Fri, 16 Sep 2011 02:33:00 GMT

North Roanoke County, Roanoke County - We invite everyone to visit our open house at 7518 NEW BARRENS CT on September 18 from 2:00 PM to 4:00 PM.

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Open House in Vinton on Sunday

K J Mehmood — Fri, 16 Sep 2011 02:28:00 GMT

Vinton, Roanoke - We invite everyone to visit our open house at 1921 CAMBRIDGE DR on September 18 from 2:00 PM to 4:00 PM.

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Price Reduced on 110 Palmer TRL in Troutville

K J Mehmood — Fri, 12 Aug 2011 14:26:00 GMT

Troutville, Daleville - Announcing a price reduction on 110 Palmer TRL, a 1,248 sq. ft., 2 bath, 3 bdrm ranch. Now MLS® $159,950 - Priced Below Tax Assessme.

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Price Reduced on 1921 CAMBRIDGE DR in Montgomery Village

K J Mehmood — Sat, 23 Jul 2011 20:33:00 GMT

Montgomery Village, Roanoke - Announcing a price reduction on 1921 CAMBRIDGE DR, a 2,220 sq. ft., 2 bath, 4 bdrm bi-level. Now MLS® - PRICED $10,750 BELOW TAX.

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Newlyweds say “I DO” to FHA Bridal Registry Gift Funds.

K J Mehmood — Wed, 29 Jun 2011 19:35:00 GMT

Are you planning to get married and buy a home in Colorado, but wonder where your down payment funds will come from?

FHA has a Bridal Registry program where the money you receive as a wedding present can be used towards your down payment. Just like registering at a specialty or department store, the FHA Bridal Registry program allows you to register with a lender. Then your friends and family are able to make gift payments into an interest bearing account on your behalf.

It's a win win! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.

Bridal Registry Guidelines

Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance. The misunderstanding of how this program works might be the fact that it was originally only allowed by banks. Soon after, FHA modified the program and offered new flexible options and the opportunity for the newlywed to set up the account at any bank. Plus, newlyweds are now able to make deposits on their own from the gifts they receive.

Here's how it works in 3 simple steps:

You will open a savings account at your bank prior to the wedding
Friends and family will be given the banking information where the gifts will be deposited
All of the gift funds can go towards the FHA required 3.5% down payment
Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
There is no requirement that you be married prior to closing on your new home

Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named "bridal registry account." It's that simple!

5200 Salem Turnpike in Mason Creek

K J Mehmood — Wed, 29 Jun 2011 13:59:00 GMT

Mason Creek, Roanoke - Announcing a price reduction on 5200 Salem Turnpike, a other. Now MLS® $75,000 - Great development opportu.

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Improve Your Credit Score Before Searching for a Home

K J Mehmood — Tue, 21 Sep 2010 15:12:00 GMT

Improve Your Credit Score Before Searching for a Home

By Paige Tepping

RISMEDIA, September 8, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.

According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.

The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.

By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.

Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.

If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.

Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.

After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.

It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.

By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.

stop foreclosure get foreclosure help

K J Mehmood — Fri, 03 Sep 2010 15:24:00 GMT

Click a Top 14 question below to read the answer:

Abrupt Pause in Home-Upgrade Program Leaves Projects Incomplete

K J Mehmood — Sun, 29 Aug 2010 02:51:00 GMT

Abrupt Pause in Home-Upgrade Program Leaves Projects Incomplete

By Tiffany Hsu

RISMEDIA, August 27, 2010--(MCT)--A popular program that allows homeowners to tap low-interest government financing to install energy-efficient solar panels, windows and insulation has stalled, leaving tens of thousands of green improvement projects across the country in limbo.

Most local and state governments stopped providing the funds after federal regulators warned that the so-called Property Assessed Clean Energy program, or PACE, posed "unusual and difficult" financial risk and that homeowners who participate in the program may by violating their mortgage terms and face foreclosure.

The quagmire has left many green-oriented home improvement companies in a lurch, causing them to scrap projects that they say could have created thousands of jobs and helped draw investors. Some have simply given up on the program altogether.

"The way it shut down was really painful for us, because we lost a lot of business we had been counting on," said Matt Golden, president of Recurve Inc. of San Francisco. "We don't have the jobs to put these people to work, and that's a calamity in the long run."

More than a dozen Recurve home projects worth more than a quarter of a million dollars are at risk, now that the city of San Francisco's program is on hold. Golden had to give up plans to hire up to four people a month.

"It resulted in one of the worst months we have ever had," he said.

Homeowners Evelyne Michaut, 36, and Leel Peesapati, 39, had finalized preparations to retrofit their 1950s San Francisco home when PACE — and their $50,000 funding package — came to a standstill. They had to scale back plans for a floor heating system, garage-to-attic insulation and top-notch energy-efficient windows.

Michaut and Peesapati reluctantly settled on the only other financing option they could find: a second mortgage.

"We were counting on the money, but had the rug pulled out from under us," Peesapati said. "Had we known that this would have fallen through, we would have gone down a completely different path."

When it was launched, the program was hailed as an innovative way to create jobs and bolster environmentally friendly home improvements.

Vice President Joe Biden heralded the program in April and announced that the federal government would pump $452 million in stimulus funds for eco-friendly building upgrades.

PACE, according to supporters, could create thousands of jobs while saving homeowners thousands of dollars in energy savings.

The California Energy Commission funneled $110 million in federal stimulus funds into PACE and similar programs.

Thousands of properties have used tens of millions of dollars for improvements since Cisco DeVries, then an assistant to the mayor of Berkeley, Calif., conceived the program there in 2006.

Most of the energy-efficiency upgrades are financed using bonds issued by local governments and are paid back through tax assessments on the property, sometimes over two decades. The liens are attached to the house, not the borrower.

But critics said PACE's financing mechanism is better suited for building sewage networks, underground power lines and other public infrastructure projects that benefit entire communities.

The program also raised red flags for the Federal Housing Finance Agency, which said in July that PACE was too risky, especially in a shaky housing market.

Lenders were alarmed by a provision that required PACE funds to be paid back before a mortgage in a foreclosure.

The agency told lenders that they could tighten lending standards for entire communities that continued to sign up for PACE, which could require borrowers to make higher down payments and make it more difficult to get a mortgage.

The agency regulates mortgage finance giants Fannie Mae and Freddie Mac, which were seized by the federal government after the economic meltdown in 2008.

Now, PACE advocates are scrambling to keep the momentum going for eco-friendly upgrades but are torn about whether to do it by reviving PACE or moving on to other funding alternatives.

"Virtually all the (PACE) programs around the country have ground to a complete stop," said DeVries, now president of Renewable Funding of Oakland, Calif., which helps set up energy-efficiency programs. "There are other financing solutions, but PACE was uniquely powerful in getting people over the mental hurdle and into the door."

Several lawsuits have been filed against the federal housing agency, and Congress is considering legislation that would force the agency to support the program.

Some governments, such as California's Sonoma County, are pressing ahead with the PACE program despite the potential backlash from lenders.

This month the California Energy Commission began considering new ways to fund home energy improvements after it canceled plans to pump an additional $30 million into PACE statewide.

Several cities and counties around California had programs in progress, and at least another dozen — including Los Angeles and San Diego counties — were poised to launch projects that are now on hold.

"The FHFA statement was a mistake, and the timing was damaging," said Karen Douglas, chairwoman of the state's energy commission. "But if we didn't move forward then financing would continue to be a barrier to energy upgrades for Californians."

One option could be following the lead of Portland, Ore., which recently launched a 500-home pilot program that allows homeowners to pay off green home improvements in installments through their utility bills.

"PACE had administrative challenges and was really kind of cumbersome," said Aaron Berg, chief financial officer of Clean Energy Works Oregon Inc., which is administering the city's energy efficiency projects. "We need to continue to innovate here."

(c) 2010, Los Angeles Times.
Distributed by McClatchy-Tribune Information Services.

Tips for Getting Your Home Ready for Fall

K J Mehmood — Sun, 29 Aug 2010 02:42:00 GMT

Tips for Getting Your Home Ready for Fall

By Paige Tepping

RISMEDIA, August 27, 2010--Now that summer is beginning to wind down and cooler weather is on its way, it’s time to get some of the routine home maintenance out of the way before it gets too cold. If you don’t prepare your home in the fall season, and clean up the yard, when spring comes along, you could be left with an unsightly mess. Lisa Udy, a Realtor in Utah offers the following tips to prepare your home for the cold months ahead.

Clean out the rain gutters – If you have rain gutters on your home, fall is the best time to get them cleaned. Cleaning rain gutters isn’t that difficult of a task, it’s just a tedious one. The easiest way to get rid of the junk is to use a high pressure hose, and then use a small trowel to get rid of the rest of the debris. Once you have gotten rid of all the debris, give your gutters a final spray.

Take care of your pots and planters – If you’re like most homeowners, you have some planters or potted plants sitting around the yard. Before it gets too cold, be sure to empty the dirt out of any pots or planters and put them in a place where they won’t freeze. If you don’t empty or store your planters, there’s a good chance they will either crack or fall apart.

Rake the leaves – Keeping your yard free of leaves is an important task for homeowners. If you have numerous trees in your yard and piles of leaves that you don’t take care of, you might find that your grass is dead once spring arrives. Leaves can smother your lawn and replacing a lawn can cost a lot of money, so it’s a good rule of thumb to get rid of the leaves in the fall.

Weed and feed the lawn – The best time to weed and feed the lawn is in the fall. If you add weed killer in the fall, the weeds will store the poison in their roots during the winter season, and will prevent a breakout in the spring. By feeding your lawn with fertilizer in the fall, you are promoting healthy root growth, and this will help your lawn grow greener and faster in the spring.

Give your tools a tune-up – Once you have finished your fall maintenance chores, make sure you clean your tools and store them in a dry place so they will be in working order once spring arrives. Be sure to store metal shovels with the head upwards, as this will help detour rusting when it dries. Sheers need to be oiled up, wheel barrels should be left upside down and don’t forget to spray off the underside of the lawnmower.

Borrowing Costs May Fall as Fed Makes its Move

K J Mehmood — Mon, 16 Aug 2010 13:52:00 GMT

RISMEDIA, August 16, 2010--(MCT)--One of the most powerful and dominant pursuits is back. It's one that compels fanaticism and stirs up fantasies. No, it isn't the NFL preseason. It is the Federal Reserve effort to lower borrowing costs.

This week, the Fed will be in the bond market buying U.S. government debt. The Fed is playing defense against a slowing economy by hoping to keep interest rates low.

The bond market seems poised to revisit interest rates last seen in late 2008 when the financial system teetered on the edge of collapse. Investors may see those record low rates as soon as this week. The Fed starts buying government bonds Tuesday in what is the first play of an $18 billion game plan to lower interest rates and stimulate the economy.

As rates fall, consumers may see their borrowing costs drop. Certainly, creditworthy home buyers may be tempted by ever-cheaper mortgage money. Perusing the open-house listings may compete with fantasy football drafts.

Still, lower borrowing costs haven't inspired businesses to start hiring. The Fed hopes a different strategy from its monetary playbook will.

The bond market may not inspire tailgating and face painting, but it can trigger the same kind of awe as a perfectly executed double-reverse. President Bill Clinton's former campaign manager James Carville once said that if he were reincarnated, he wanted to come back as the bond market. "You intimidate everybody," he remarked.

(c) 2010, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.

Lot / Land For Sale in Bent Mountain

K J Mehmood — Sat, 14 Aug 2010 15:48:00 GMT

• lot / land "Vacant Land" - MLS® $89,950 - Great Value

Bent Mountain, Roanoke - 6.41 acre SW County land with incredible views, already perked for 4 bedroom house. Not too close to the city and not too far. Have to sell it for personal reason. Priced to sale-bring offers. **DO NOT USE NEIGHBORS DRIVEWAY FOR ACCESS** Use GATE next to REALTOR sign.
221S from Cave Spring Corner 11.3 miles, land on left. Look for REALTORS sign.

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Back-to-School Safety Tips

K J Mehmood — Thu, 12 Aug 2010 04:27:00 GMT

Back-to-School Safety Tips

RISMEDIA, August 11, 2010--It's almost time to send your children back to school, and some parents may be breathing a sigh of relief after the long summer. But before you pack the kids up and rush them out the door, there are a few things to keep in mind regarding their wellbeing. Universal Services of America gives you the following tips to help ensure the safety of your little ones, as you send them off to tackle another school year.

-- Walking to and from school: map out the route your child will take and know who lives along it. While you don't have to know every homeowner, it is important you research for any possible sexual predators that may live in the area. Also advise your children to stay on the preselected path and avoid any parks, alleys, fields, etc., where there aren't a lot of people around. Find out beforehand if there will be crossing guards at the intersections, and arrange for neighborhood children to walk together. Ensure your child knows their address and phone number.

-- Riding a bike or scooter: make sure they know and obey the traffic laws and wear proper safety equipment. Bike helmets, sturdy shoes and a backpack that isn't overloaded will all help make the trip easier and safer for your little one.

-- If you plan on driving your child to school, make sure you see them enter the school yard or building before you leave.

-- If your child will be taking the bus, instruct them to arrive at the stop early, stay out of the street while waiting and always keep themselves visible to the bus driver.

-- Dealing with bullies: teach your child to stand tall, remain calm and walk away from difficult confrontations; if you suspect your child is being bullied, visit the school immediately and explain the situation to the principal.

-- Playground safety: check out the equipment your child will be playing on and report any potential hazards. Remove the drawstrings from around the neck of clothing; any drawstrings at the waist or bottom of a garment should be trimmed to no more than three inches long.

-- Children need strict rules in place if they will be home alone: set a check-in time for them to call and let you know they made it home, and make sure they understand to keep the doors locked once they're inside. Additionally, you and your children should make plans beforehand for what they need to do in emergency situations, such as fires, accidents, earthquakes, etc.

-- Remaining healthy and drug/alcohol-free can be challenging for kids when faced with peer pressure; take this opportunity to speak to them about it. The Office of National Drug Control Policy has launched a campaign called Above the Influence to help you approach this topic with your children. You can access their information at: http://www.abovetheinfluence.com/heatmap/

Price Reduced on 0 Bent Mountain Road in Bent Mountain

K J Mehmood — Mon, 02 Aug 2010 03:33:00 GMT

Bent Mountain, Roanoke - Announcing a price reduction on 0 Bent Mountain Road, a lot / land "Vacant Land". Now MLS® $89,950 - Great Value.

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Congress Restores Rural Mortgage Help

K J Mehmood — Fri, 30 Jul 2010 21:12:00 GMT

The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama.
The National Association of REALTORS® has vigorously lobbied to restore funding for the rural program since last March, and hailed this development as a great victory for rural home buyers.

“This is going to be a great lift for thousands of rural home buyers who need to close on their home purchases before Sept. 30 to take advantage of the home buyer tax credit,” said NAR President Vicki Cox Golder. “Many rural families would have been left out in the cold without these guaranteed loans. Increasing the commitment authority will help rural families, support local housing markets, create jobs and generate new tax revenues.”

“The rural housing program is a good example of the kind of program needed for responsible and qualified home buyers who bring common sense to the housing market,” said Golder. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed. “This change will make the program completely self-sufficient,” she said.

Golder thanked Sen. Michael Bennet (D-Colo.), and Reps. Paul Kanjorski (D-Pa.) and Shelley Moore Capito (R-W.Va.) for moving the bill to passage in both houses.

The legislation was part of H.R. 4899, “The Emergency Supplemental Appropriations Act” that the Senate passed today. The measure increases the Rural Housing Service commitment authority allowing guaranteed loans; previously, RHS has been providing conditional commitments. The RHS is expected to announce new guidelines shortly after the president signs the bill.

More details from NAR.

Source: NAR

Record Lows Continue for Mortgage Rates

K J Mehmood — Fri, 30 Jul 2010 21:07:00 GMT

Record Lows Continue for Mortgage Rates
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.

The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.

Source: The Wall Street Journal, Nathan Becker (07/30/10)

It's a Great Time for Housing Deals

K J Mehmood — Fri, 30 Jul 2010 21:02:00 GMT

It's a Great Time for Housing Deals
Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.

"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.

With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."

Source: The Wall Street Journal, M.P. McQueen (07/24/2010)

Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.

"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.

With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."

Source: The Wall Street Journal, M.P. McQueen (07/24/2010)

5 New Short Sale Myths - Busted!

K J Mehmood — Sun, 18 Jul 2010 16:15:00 GMT

Common short sale myths once evidenced widespread confusion about what a short sale is - mostly misconceptions that they are quick, or faster than “normal” real estate transactions. In reality, the “short” in short sale has nothing to do with timing. Short sales usually take many multiples of time longer than traditional real estate deals - running anywhere from 3 to 8 months-plus, on average, from contract to closing!

The only thing short in a short sale is the sales price - it is less than, or “short” of, the amount the seller would need to pay off all the loans and other outstanding obligations (tax liens, delinquent HOA dues, etc.) against the property. In these situations, unless the seller is willing to write a check to make up the difference, their lender(s) must agree to forgive the shortfall in order for the sale to close.

But most short sale buyers - and sellers - know this stuff by now. With one in four homeowners in America owing more on their homes than they are worth, short sales won’t be going anywhere for a long time to come. And the more people get involved in a short sale transaction, the more confusion and misunderstandings result.

Here are 5 of these “next-generation” myths about short sales, and the facts to shatter them:

Myth #1: That there is anything typical, standard or normal when it comes to getting a short sale approved.

Fact: There’s no such thing as “normal” in a short sale.

Some of the most frequently asked questions in the Trulia Voices Community include things like:

Is it normal for a bank to respond to a short sale with a counteroffer higher than the list price and the appraised price?
What’s the standard amount of time it takes a bank to approve a short sale package?
What’s the rule of thumb for how much below asking a bank will approve?

Despite the recent goverment “streamlining” efforts that promised to impose a set of standards most banks would follow in processing short sales, it’s still a black box experience for most buyers and sellers. Buyers submit their offers, sellers sign them and hand over all their financials to their listing agent who submits it all to the bank - and then often no one hears anything back for a few months, if ever. Other times, the whole thing is approved in a matter of weeks (though this is much less rare).

The bank is in the power position, and can respond to your offer however they want. They may counter at a much higher price and demand a cash payment from the seller. Or not. They may take weeks, or they make take six months. They may approve a way-below asking offer, or require a hundred thousand over the asking price. Forget the idea of standard, when it comes to a short sale.

Hint: short sale listing agents who have done a lot of recent, successful short sales with the same bank do often have insider knowledge that is the closest thing to a rule of thumb over what any individual bank’s practices are. If you’re a buyer, prioritize short sales that are listed by short sale masters - your agent will know who they are. If you’re a seller, ask prospective listing agents for a list of short sales they recently closed, including which bank(s) were involved.

Myth #2: It’s smarter for homeowners to walk away than to short sell their homes.

Fact: Increasingly, I’m hearing those who own upside down homes ask why they would bother with a short sale, when they could just walk away with much less effort and drama. The reality is that walking away and letting your home go to foreclosure is an extremely serious, personal decision - the wisdom of which varies dramatically owner to owner and state-to-state. Some states allow lenders to sue homeowners who default on their mortgages, and impose state taxes on the mortgage debt cancelled out in a foreclosure, sometimes totalling tens of thousands of dollars.

Other homeowners’ family and financial plans would be impaired much less by a short sale than by a foreclosure. For still others, it’s pretty much a wash. For everyone, though, it is faster to recover your credit and ability to take out another mortgage on a new home after a short sale than after a foreclosure.

Given that a short sale costs a seller little or nothing except some time and effort, in many instances it is smarter to make the effort to short sale than it is to walk away.

Myth #3: A short sale is the same as a pre-foreclosure.

Fact: A short sale is a home being sold for less than what is owed on it. A pre-foreclosure is a home that is in some stage of the foreclosure process because the owners are behind on the mortgage payments. Many short sales are pre-foreclosures, because the owners stopped making payments when they put the home on the market, either because they can’t afford them, they are simply done with the property and don’t see a need to continue paying on it, or because they feel the bank is more likely to approve their short sale application if they are in default on their loan (a position many experienced short sale agents argue is true).

But not all. Remember, nothing is standard when it comes to short sales. Short sales are closed every day on which the seller is still in good standing on their loan - these are mostly the short sales of owners who elect this strategy out of a desire to maintain their credit as much as possible, but have to move for work or family reasons.

Buyers should not assume that every short sale will come on the market later as a foreclosure; they should inquire as to any foreclosure notices against the property, and keep track of those time frames. Many a buyer has been surprised when the bank auctions a property they are in contract to buy.

Myth #4: The the buyer’s broker - or even the buyer’s offer - has much to do with getting a short sale approved.

Fact: Writing a clean, well-qualified offer is important to getting a short sale seller to believe that a buyer will hang into the short sale for the duration so they will sign the contract. However, the buyer’s offer and agent have little, if anything, to do with whether the seller’s bank green lights the deal, as needed to close it.

While the bank obviously cares about the price you offer, even that’s not as important as several other factors, including:

the bank’s perception of the home’s fair market value (as usually indicated by a third-party broker’s opinion, or an automated computer model),
the seller’s financials (if they have a bunch of cash stashed, the lenders is unlikely to let them sell the place with no contribution from them)
the completion of the seller’s workout application package and follow-up (squeaky wheel gets the grease and all that, and it’s the listing agent that needs to be that, often, for these transactions to get closed).

Myth #5. That the bank “can’t” do X or “has to” do Y.

Fact: The seller’s bank in a short sale is being asked to waive debt that they are legally owed. They have the absolute right to simply refuse entirely to accomodate this debt forgiveness request. However, if they do choose to waive some or all of the shortfall, they also have the right to place whatever conditions on that waiver. They can ask for more money from the seller - or the buyer (and often do). They can ask the agents to reduce their commissions (and often do that, too). They can refuse to pay various closing costs, if they want. And the buyer or seller can counter, accept or refuse any or all of the bank’s demands, too, but know that the banks do have the right to place whatever conditions on the short sale they want. After all - he, she or it who has the cash (or the mortgage, in this case!) makes the rules!

Outdoor Projects that Save You Money

K J Mehmood — Sat, 17 Jul 2010 05:15:00 GMT

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Simple, low-cost watering systems help you save water and money but still have a great-looking yard. Read
Plant Trees To Save Energy and Grow Value

Plant a tree to add value to your home and have a positive impact on the local environment. Read

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