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posted by on 8/3/2010
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Not all buyers are worth a counteroffer
By Dian Hymer
After mustering the emotional energy to make an offer on a listing, it can be devastating if you hear nothing back from the seller.
In most cases, if the offer isn't what the sellers are looking for, they will issue a counteroffer detailing the price and terms they can live with. When a seller doesn't respond at all to your offer, it's usually because the offer is so low that the seller thinks it's a waste of everyone's time.
Ask your agent to talk to the listing agent to find out why the seller didn't counter your offer. Then, make another offer if you think the house warrants a higher price. If the sellers want too much for their house, take a breather. Let the listing sit on the market awhile before you make another offer.
The risk of this approach is that another buyer could come into the picture who is willing to pay the sellers' price. Nothing is lost if you wouldn't have paid that price.
Your agent should keep in touch with the listing agent during your wait-and-see period. Ideally, you'd like to know if the sellers are going to reduce the price before it shows up on the multiple listing service. A price reduction to market value could elicit interest from multiple buyers.
Risk-averse sellers can be skittish about working with buyers who have a low cash downpayment. It's wise to include a mortgage preapproval letter with your offer. Also, some sellers aren't in a position to accept an offer that's contingent on the sale of the buyers' home.
Another reason buyers don't receive counteroffers is because there were multiple offers. The sellers can accept only one offer in primary position. If there were five offers and yours was the lowest, you're not likely to receive a counteroffer.
Multiple offers are occurring in low-inventory, high-demand markets. Buyers were out early this year due to lower home prices, low interest rates and homebuyer tax credits.
HOUSE HUNTING: A typical reaction from buyers who lose in a multiple-offer competition is that they would have paid more. When you're competing against other buyers, you need to make your first offer your best offer. This seems counterintuitive because you run the risk of paying more than you might need to.
One way to ensure that you don't pay too much is to include an appraisal contingency in your purchase offer. Generally, an appraisal contingency allows the buyers to withdraw from the contract if the house doesn't appraise for the purchase price. In today's wary lending environment, lenders are requiring appraisers to be conservative on appraisals, particularly in declining markets.
Be aware that some buyers in a competitive situation will not include an appraisal contingency in their contract. If they have a large enough cash downpayment and the appraisal value is less that the contract price, the lender may still approve a loan amount that will enable to the buyer to proceed with the sale.
THE CLOSING: Buyers who want a house badly enough will often pay more than the appraised value if they have enough cash to make up the shortfall.
Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author.
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posted by on 8/3/2010
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How does your garden grow?
By Paula Hess
If you’d like to have a garden, but think you don’t have the space, think again. Urban gardening techniques are allowing small-space gardening to take root in unlikely places, such as balconies, raised planters, roofs, windowsills, and postage stamp-sized backyards. Condominium dwellers and homeowners alike are getting their fingers dirty and growing their own produce, succulents, and flowers in these tiny slivers of dirt.
According to Texas A&M horticulturalists, nearly every plant that grows in a spacious garden can grow in containers, such as hanging pots, windowsills, or even tubes--bags of potting soil with slits for the plants to protrude. Some plants are ideally suited for container growing, including tomatoes, peppers, eggplant, green onions, beans, lettuce, squash, radishes, and parsley. Texas A&M offers pointers on everything from soil preparation to container selection at http://aggie-horticulture.tamu.edu/extension/container/container.html.
Topsy-turvy Turnips?
One urban gardening option gaining popularity is germinating plants upside down from hanging containers. That is, the plants dangle upside down from homemade planters, such as five-gallon buckets, or commercially available planters. A recent New York Times article at http://www.nytimes.com/2010/05/20/garden/20tomato.html spotlighted this technique. These hanging options allow those without a yard to grow fresh produce, and those with a backyard garden to add a rack of hanging planters and boost their gardens’ yields. Condo dwellers can get in the act too with easy-to-make hanging window pots. For a step-by-step pictorial on making your own upside-down soda bottle container, see http://www.cheapvegetablegardener.com/2010/05/2-liter-bottle-upside-down-tomato-planter.html.
Succulents
If your interest in gardening is ornamental versus gastronomical, then succulents are an ideal match for you and California’s climate. Not only are these plants suitable for indoor and outdoor settings, these heat-tolerant and drought-resistant plants require little maintenance if you become an erstwhile gardener.
According to Debra Lee Baldwin, author of Designing with Succulents and Succulent Container Gardens: Design Eye-Catching Displays with 350 Easy-Care Plants, “Succulents are carefree plants for small-space gardens.” She notes that succulents come in all shapes, sizes, colors, and varieties—from delicate sedums with rice-sized leaves to trees that are reminiscent of the vegetation in a Dr. Seuss book. Succulents can accent any setting—windowsills, sitting areas, walkways, and, of course, yards. The author’s Web site features how-to videos at http://www.debraleebaldwin.com/ and http://www.succulentchic.net/ and a beautiful array of examples of the design possibilities. In no time, you’ll be creating your own windowsill boxes of sansevierias (mother-in-law’s tongue).
A Tree Grows in Brooklyn
What started as an experiment to grow vegetables in a Brooklyn apartment window has evolved into a collaborative online community’s effort to empower inner-city residents to grow food in windows. This Internet-based collective shares ideas and techniques for building and using low-cost hydroponics to grow vegetables. Visit http://www.windowfarms.org/ to learn how to create your own 365-day garden of edibles using low-impact materials or recyclable materials in your outbound trash. You also can purchase starter garden kits from the site. Either way, these gardens will brighten any window.
More Resources • Cactus and Succulent Society of America (www.cssainc.org/) • HGTV (http://www.hgtv.com/topics/container-gardening/index.html) • Container Gardening Guide (http://containergardeningtips.com/) • National Gardening Association (www.
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posted by on 8/3/2010
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Tricks to Keep Your House Cool this Summer
RISMEDIA, July 3, 2010
By Paige Tepping
--As the temperatures continue to rise this summer, so does the cost of keeping your home cool. While homeowners across the country come to depend on air conditioners to keep the temperature down during the warm summer months, there are other options that will keep you cool while keeping your energy bill low.
FANS & CEILING FANS -If you’re looking for ways to beat the heat, a ceiling fan can be a great investment for your home. This one appliance can make a room feel 6 or 7 degrees cooler, and even the most power-hungry fan costs less than $10 a month to use if you keep it on for 12 hours a day. Good fans make it possible for you to raise your thermostat setting and save on air-conditioning costs. Fans don’t use much energy, but when air is circulating, it feels much cooler. Ceiling fans are best, but a good portable fan can be very effective as well.
-You should remember that even mild air movement of 1 mph can make you feel three or four degrees cooler. Also, make sure your ceiling fan is turned for summer – you should feel the air blown downward.
SHADES, DRAPES OR BLINDS -Install white window shades, drapes or blinds to reflect heat away from the house. Close blinds, shades and draperies facing the sun (east-facing windows in the morning and west-facing windows in the afternoon) to keep the sun’s heat out and help fans or air conditioners cool more efficiently. Always remember that the best way to keep your home cool is to keep the heat out.
INTERNAL HEAT -The most common sources of internal heat gain are; appliances, electronic devices and lighting. Be aware of devices in your home that are generating heat and if you have air conditioning, use it wisely.
Don’t put lamps, televisions or other heat-generating appliances next to your air-conditioning thermostat, because the heat from these appliances will cause the air conditioner to run longer. The heat they produce will make the thermostat think your house is warmer than it really is, and your system will run harder than it needs to.
-Unless you absolutely need them, turn off incandescent lights and heat-generating appliances. Replace incandescent bulbs with compact fluorescents; they produce the same light but use a fifth the energy and heat.
-You should also try to avoid heat-generating activities such as cooking on hot days or during the hottest part of the day. If you are cooking, use your range fan to vent the hot air out of your house. By reducing the amount of heat in your home, you will use less energy to cool it.
PLANTS -Plant trees or shrubs to shade air conditioning units, but not block the airflow. A unit operating in the shade uses less electricity. Deciduous trees planted on the south and west sides will keep your house cool in the summer and allow the sunlight to warm the house during the winter.
ROOF AND WALLS -Paint your roof white – If you’ve got a flat roof, paint it with a specially formulated reflective paint or just paint it white. The reflective effect will help to keep the rooms under the flat roof much cooler.
OTHER THINGS TO REMEBER -Humidity makes room air feel warmer, so reduce indoor humidity. Minimize mid-day washing and drying clothes, showering and cooking. When you must do these things, turn on ventilating fans to help extract warm, moist air.
-Avoid landscaping with lots of unshaded rock, cement, or asphalt on the south or west sides of your home because it increases the temperature around the house and radiates heat to the house after the sun has set.
-If the attic isn’t already insulated or is under-insulated, insulate it now. Upgrading from 3 inches to 12 inches can cut cooling costs by 10%
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posted by on 8/3/2010
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Your Complete San Diego Calendar of Events
By http://www.sandiegan.com/events/#august
August
May 15 2010 – April 2012: The Splendor and Science of Gems and Minerals
May 15th 2010 through April 2012 is the San Diego Natural History Museums new exhibition entitled All That Glitters: The Splendor and Science of Gems and Minerals. The exhibition located 1788 El Prado, will take visitors beyond the “bling” to see gems and minerals as very rare and ancient by-products of the forces that have created our landscape, including right here in San Diego County. Tickets for nonmembers ($10–$16). For more information call 619-225-0189 or visit www.sdnhm.org ----------------------------------------
June 21-August 30: Spreckels Organ Pavilion Summer Organ Festival
The Spreckels Organ Society is back for the 2010 Summer Organ Festival featuring performances by top name performers from around the globe. The best part about the festival is it’s free to the public! Grab a friend for a concert at the largest outdoor pipe organ in the world! Concerts are held Monday nights at 7:30 p.m. ----------------------------------------
July 14– August 18: Chula Vista Village Vibes Concert Series
July 14th through August 18th The Village Vibes Concert Series comes to the Chula Vista Memorial Park every Wednesday nights. Enjoy six free open-air concerts 6:30 p.m.–8:30 p.m. varying from blues to salsa rhythms. For more info visit www.thirdavenuevillage.com or call 619-422-1982 ----------------------------------------
July 21-Sept 8: Del Mar Thoroughbred Club Racing: Where the Turf Meets the Surf
The Del Mar Thoroughbred Club presents live thoroughbred racing six days a week. Post time: 2 p.m. for the nine race program, most days. Fairgrounds at Del Mar. I-5, exit Via de la Valle. ----------------------------------------
June 27 – September 6: The San Diego Symphony, Summer Pops
The impressive Summer Pops Concerts on the Bay will thrill audiences with the sounds of the San Diego Symphony against the backdrop of breathtaking views of the Embarcadero, Coronado, San Diego Bay and romantic Downtown from Marina Park South. The popular San Diego Symphony Summer Pops will feature performances by Frank Sinatra Jr., Mary Wilson of the Supremes, Marvin Hamlish, Davy Jones and Burt Bacharach. ----------------------------------------
August 1: Tempro Libre Performs at the Summer Pops
August 1st is the Tempro Libre sizzling cuban salsa concert at Summer Pops. Located at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. A Hot Latin band in sizzling music. Count the selections from the latest CD, “Bach in Havana.” For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 6 & 7: Bravo Broadway at the Summer Pops
August 6th and 7th is the Bravo Broadway Rocks concert at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. The lineup includes songs from musicals such as “Wicked,” “Hairspray,” “Rent,” and “Phantom of the Opera.” For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 7: Snorkel the Seas with Birch Aquarium at Scripps
July 3rd Snorkel the Seas with Birch Aquarium at Scripps 2300 Expedition Way, La Jolla 8 a.m.-10 a.m. $30 per person. Ages 10+ (ages 10-13 must be accompanied by a paid adult). Enjoy the calm, picturesque waters of La Jolla Cove, part of the San Diego-La Jolla Underwater Park and Ecological Reserve. Discover the exotic playground of such beautiful creatures as garibaldi, lobsters and octopuses. Learn what it’s like to live in a state-protected ecosystem. RSVP required: 858-534-7336 or online at aquarium.ucsd.edu ----------------------------------------
August 8: Burt Bacharach Performs at the Pops August 8th Burt Bacharach the longtime Pops favorite returns with beloved tunes. The event located at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 8: Chula Vista Lemon Festival
August 8th celebrate the 14th Annual Lemon Festival with the Third Avenue Village Association in Chula Vista from 11 a.m.–7 p.m. The event celebrates the heritage of Chula Vista as the city was once self-proclaimed “Lemon Capital of the World” in the 1920’s. The free event takes place between E and G Streets in Third Avenue. For more info visit www.thirdavenuevillage.com or call 619-422-1982 ----------------------------------------
August 13 & 14: Leann Rimes performs at the Summer Pops August 13th and 14th Leann Rimes singing sensation performs at the Bridgepoint Education Summer Pops. Located at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 14, 21 & 28: Snorkel the Seas with Birch Aquarium at Scripps
August 14th, 21st & 28th Snorkel the Seas with Birch Aquarium at Scripps, 2300 Expedition Way, La Jolla 8 a.m.-10 a.m. $30 per person. Ages 10+ (ages 10-13 must be accompanied by a paid adult). Swim with schooling leopard sharks, smoothhound sharks and guitarfish while enjoying the mild surf and gently sloping beach of La Jolla Shores. See rays, flatfish, sand dwelling invertebrates and coastal sea life. RSVP required: 858-534-7336 or online at aquarium.ucsd.edu ----------------------------------------
August 15: Symphony on the Wild Side at the San Diego Zoo
August 15th the San Diego Symphony comes to the San Diego Zoo, 2920 Zoo Drive, San Diego at 5 p.m. Children (2–17) $50, Adults (18+) $150. Tickets includes a family-friendly concert featuring live animals, buffet dinner, activity stations and “Night Zoo” admission. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 18: Steve Poltz Performs at the Green Flash Concert Series
August 18th Steve Poltz Performs at the Green Flash Concert Series held at the Birch Aquarium, 2300 Expedition Way, La Jolla 6 p.m.–9 p.m. The clever, creative and humorous songs of local powerhouse Steve Poltz make for an unforgettable evening of great music and great fun. The concert combines live music with panoramic ocean views on the aquarium’s outdoor tide-pool plaza. Tickets ($35) to general public and ($32) for members. Must be over 21 to attend. Call 858-534-4109 or visit www.aquarium.ucsd. ----------------------------------------
August 20 & 21: Jodi Benson Sings Animated Movie Classics
August 20th and 21st Jodi Benson Sings Animated Movie Classics at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. You’ll hear the voice of Ariel in Disney’s “The Little Mermaid” live and in person as she performs songs from such films as “Lady and the Tramp,” “Toy Story” and more. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 22: Pops goes Classical
August 22nd the Summer Pops goes Classical with a passport to France. Located at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. For more info 619-235-0804 www.sandiegosym ----------------------------------------
August 23 & 24: Experience a Full-Moon Walk on Scripps Pier with Birch Aquarium at Scripps
August 23rd & 24th Experience a Full-Moon Walk on Scripps Pier with Birch Aquarium at Scripps, 2300 Expedition Way, La Jolla 7 p.m.-9:30 p.m. $25 per person. During this moonlit walk along the entire 1,090-foot concrete pier, aquarium naturalists will teach participants about the structure’s history, and guide them as they dissect a squid, make marine organisms glow in the dark, collect plankton, observe ocean conditions and study the nocturnal habits of marine life. A tour of the Scripps Oceanography campus is included in this jam-packed night of fun and exploration. Program includes a special souvenir for participants. RSVP Required: 858-534-7336 or online at aquarium.ucsd.edu ---------------------------------------
August 26: The Music of Queen at the Summer Pops
August 26th the Music of Queen comes to the Bridgepoint Education Summer Pops. Located at the Embarcadero Marina Park South, 206 Marina Park Way, downtown. With this tribute band, it’s all about Queen and the enduring power of Freddie Mercury. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 27 & 28: The Sinatra Project at the Pops
August 27th and 28th is the Sinatra Project at the Pops located Embarcadero Marina Park South, 206 Marina Park Way, downtown. Concerts feature Michael Feinstein in music made famous by Ol’ Blue Eyes. For more info 619-235-0804 www.sandiegosymphony.com ----------------------------------------
August 28: The 8th Annual Chula Vista Rotary Wine & Food Festival
August 28th is the 8th annual Chula Vista Rotary Wine & Food Festival at the Otay Ranch Town Center, located at Olympic Parkway & Eastlake Parkway. Guests will be in for a delight as they indulge their taste buds in the phenomenal house specialties prepared by over 20 of Chula Vista’s most prominent restaurants. The event goes from 6 p.m.–9 p.m. and tickets are $50. For more information or to purchase tickets call 619-233-5008 or visit www.mcfarlanepromotions.com
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Texas Leading the Nation in Economic Recovery posted by Chris Sato on 7/4/2010
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Texas leading the nation in economic recovery
The Texas Real Estate Center recently announced in its online newsletter, RECON, that Texas is coming out of the Great Recession and leading the United States in the current U-shaped economic recovery, according to the Real Estate Center's latest monthly review of the Texas economy.
After 16 months of job losses, the state’s annual employment growth rate turned positive in May 2010 and posted an annual employment growth rate of 0.2 percent for the period from May 2009 to May 2010. The nation’s rate of job losses has decreased from 5 percent in August 2009 to 0.4 percent in May 2010.
The state’s seasonally adjusted unemployment rate rose from 7.5 percent in May 2009 to 8.3 percent in May 2010, while the U.S. rate rose from 9.4 percent to 9.7 percent during that period.
Five Texas industries — education and health services, mining and logging, other services, leisure and hospitality, professional and business services — and the government sector had more jobs in May 2010 than in May 2009. Six other industries had net job losses over the same period.
Thirteen Texas metro areas posted positive employment growth rates from May 2009 to May 2010, up from seven for the period from March 2009 to March 2010. College Station-Bryan ranked first in job creation followed by San Angelo, Waco, Killeen-Temple-Fort Hood and McAllen-Edinburg-Mission.
The state’s actual unemployment rate in May 2010 was 8 percent. Amarillo had the lowest unemployment rate followed by Midland, Lubbock, College Station-Bryan and San Angelo.
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Tax Credit Extension posted by Chris Sato on 7/2/2010
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Home Buyers Get Tax Credit Closing and Flood Insurance Extensions
The National Association of Realtors® worked closely with congressional leaders
on both sides of the aisle toward the timely passage of two bills to extend the
home buyer tax credit closing deadline and reauthorize the National Flood
Insurance Program. Both bills had cleared the House earlier and were passed by
the Senate last night, heading for the President’s signature. The tax credit
closing deadline and the NFIP reauthorization were extended to September 30.
Extending the tax credit closing and flood insurance deadlines will help provide
additional stability to real estate markets across the nation, NAR said. The
passage of H.R. 5623, the Homebuyer Assistance and Improvement Act, applies the
homebuyer tax credit closing deadline extension only to homebuyers who have
ratified contracts in place as of April 30, 2010, but could not close before
June 30. There will be no gap between June 30 and the date the president signs
the bill into law. Senate passage of the National
Flood Insurance Program Extension Act of 2010 (H.R. 5569), reauthorizes
extension the NFIP until September 30, allowing currently stalled transactions
to move forward. The bill is retroactive and covers the lapsed period from June
1, 2010, to the date of enactment of the extension. Any new policy applications
or renewals that were signed and submitted during the lapsed period will be
effective from the date of application. In the case of waiting periods, the
waiting period will start from the date of application.
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Pending Home Sales Drop posted by Chris Sato on 7/2/2010
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Pending home sales 'fell off a cliff'
It was expected, but not this bad. Experts did suggest that home sales would
drop once the homebuyer tax credit lapsed at the end of April, but no one
expected it to be close to a shocking decrease. According to the National
Association of Realtors (NAR), pending home sales fell a whopping 30% in May.
Their index, which measures signed sales contracts but not closed sales, plunged
to 77.6 from 110.9 in April. It's even off 15.9% from a year ago when the nation
was barely emerging from the recession. "The pending home sales report is a
disaster," said Mike Larson, a real estate analyst for Weiss Research. "Sales
fell off a cliff after the tax credit expired. It's the biggest monthly decline
ever and the index is at its lowest level since NAR began tracking it in 2001."
Lawrence Yun, NAR's chief economist downplayed the damage a bit. According to
him, customers rushed into deals to claim the credit, borrowing from May sales.
Once the economic recovery comes into full swing, housing markets will heat up.
Those conditions include much lower home prices and extremely favorable mortgage
interest rates. The question is when -- or if -- the job market will ever bounce
back. "We're not creating jobs," said Larson. "The housing problems now are
being driven by broad economic problems.
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Walk Away and You Will Pay posted by Chris Sato on 6/25/2010
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Diana Olick - Fannie Mae: Walk Away and You Will Pay
“Dare I say it? "What took you so long??" An announcement from government-owned
mortgage giant Fannie Mae warns: "Defaulting borrowers who walk-away and had the
capacity to pay or did not complete a workout alternative in good faith will be
ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years
from the date of foreclosure." I have to ask: Why only seven years? Up the ante!
Look, I understand that a lot of folks are sitting on overwhelming bundles of
negative equity in the form of four walls. A very credible argument can be made
that a bad investment should not be a jail term. However, a lot of the housing
crash was based on a fundamental change in attitudes toward home ownership, i.e.
that a home is an investment before a dwelling.
The pendulum needs to shift back, not all the way, but more toward the
traditional use of home: A place to live, not an A.T.M. "Fannie Mae will also
take legal action to recoup the outstanding mortgage debt from borrowers who
strategically default on their loans in jurisdictions that allow for deficiency
judgments," notes the press release. I'm wondering why they haven't been doing
that all along? My guess is they simply don't have the legal resources available
to handle such a huge job...which brings me to my final thought: If the mortgage
walk-away issue is big enough for Fannie Mae to get this tough, then why have
Administration officials been telling me over and over that "it's just not that
big an issue." Seriously, I've done several interviews over the past year,
bringing it up over and over, and they just seem to want to sweep it under the
rug. I guess the rug is getting a bit too bumpy.”
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Fannie Mae Goes After Borrower's Who Walk Away posted by Chris Sato on 6/25/2010
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Fannie Mae gets tough on homeowners who walk away
The courts will now come to the mortgage giant’s plans to take on those who
decide not to make their payments. It also will limit their access to future
loans. Foreclosures continue at a rate of 2.5 million a year, Federal Deposit
Insurance Corp. Chairwoman Sheila Bair said, and some 11 million households owe
more on their mortgage than their home is worth. Taking aim at homeowners who
are able to pay their mortgage but decide it's not worth it, Fannie Mae plans to
go after them in court and to limit their access to home loans for seven years.
It was a clarion call to companies servicing its loans to recommend, engaging in
a so-called deficiency judgment — a court order requiring a defaulting borrower
to pay any remaining unpaid portion of the loan after a seized home is sold.
Under California state law, lenders who opt for court proceedings can obtain a
deficiency judgment if the mortgage was used to refinance a home, but not if it
was used to finance a purchase.
Fannie Mae also said it would make new mortgages harder to obtain for borrowers
if it can be proved that they engaged in a "strategic default" — abandoning a
home to foreclosure not because the required payments are unaffordable but
because the mortgage is larger than the value of the residence. For such a
borrower, Fannie said it would not buy or guarantee another home loan for seven
years. Borrowers who are slightly underwater — owing just a little more than
their homes are worth — are unlikely to stop paying their mortgages if they have
the resources, according to studies by research firm CoreLogic. But if the
home's value is at least 25% less than the loan amount, borrowers are far more
likely then to walk away. Last March, 31% of foreclosures were described as
strategic by the borrowers themselves, compared with 22% in March 2009,
researchers at the University of Chicago and Northwestern University reported.
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Fudging on the Homebuyer Tax Credit posted by Chris Sato on 6/25/2010
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Fudging Homebuyer Tax Credit
Some homebuyers are angling to claim the $8,000 tax credit even though they
missed the deadline. To claim the credit, buyers had to sign contracts by April
30 and close the sales by June 30. But real estate agents say some buyers are
demanding quick closing dates to meet the June 30 deadline, even though they
failed to meet the April 30 deadline. And because the IRS doesn't require
paperwork specifically proving the contract date, they might get away with it.
Claiming the credit does require more than sending in your taxes and asking for
the money. Buyers have to fill out a special form and attach a copy of their
settlement statement, which they receive at closing.
"People do have to submit documentation," said an IRS spokesman. But, the
settlement statement does not require the contract date -- just the "date of
purchase," which is the closing date. "It's just illegal," said Tara-Nicholle
Nelson, a real estate broker, attorney and an accredited buyer's agent and a
spokeswoman for Trulia, the real estate Website. "But if everyone in the
transaction is colluding, it would be difficult to catch." Along with the IRS,
even the Treasury Inspector General is keeping quiet, despite releasing a report
on Tuesday about other abuses of the homebuyer tax credit - including prisoners
claiming the benefits. "Even if we did know about it, we probably wouldn't
comment," an IG spokesman said.
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