Recently a friend asked, “well, where are we now” with respect to the real estate and specifically, housing market. See, I think she has been waiting to see if she could purchase a home for $1. If you want a good home, this is unrealistic!
Where are we now? We are at a point where many individuals are losing their homes. This is not good. But, as with everything in our economy, one must look at the bad and the good. The good thing is that there is a lot of inventory out there. So, buyers have many opportunities, yet have to beware. Make sure you have the property inspected and don’t just jump at it because the price is good. Maybe you should think of working with a Buyer’s Agent. A Buyer’s Agent works with your interests in mind. A Buyer’s Agent will represent you, not the seller. Here in NYC, this is specified in a contract.
Likewise, if you are a homeowner and see that you will be getting into trouble months ahead, plan accordingly. You need to seriously consider putting your home on the market but really plan on doing this way ahead of time, do not wait until the last moment when all you can do is foreclose. Find a good realtor, and I know it’s hard but if you look around and ask questions, there are an awful lot of good ones who really want to help you. A good realtor will take the time to sit and talk with you about your specific situation and should be able to inform you on options that others in your particular area have taken advantage of in order to steer clear of foreclosure. Remember, your home purchase was a major investment and life altering decision for you, so plan, plan ahead. Many of our homeowners in trouble have waited until the final moment, then they want to try to sell the house at a price that is extreme in this market. Unrealistic! The home just sits with no takers and the homeowner wonders why it is not selling.
Other homeowners in trouble don’t even want to work with a realtor. You know, there are times in life when doing something on your own really works for you but there are other times when you have to humble yourself and recognize that it may not serve you well to “do it alone.” Keep in mind that the realtor is paid at closing. So it does not cost you anything to just talk to a realtor. Anyone who wants you to sign on the dotted line before giving you the time of day is not worth their weight in salt!!! Just keep looking and you can find someone you can work with and lean on when you get anxious.
As for homeowners that are doing well. Maybe this is not exactly the time to put your home on the market if you can hold off. When there is an awful lot of inventory and buyers have so many options, you will probably not be able to sell your home at the price you are thinking of.
Where are we now? I think we are at a point where you really should look for the professionals in the industry who can guide you during your decision making process. Is this some sort of plug for my profession and others in it. Absolutely! I and others continuously get training to serve you in the best way possible, see that as an opportunity and take advantage of it.
Monday, October 12, 2009
Saturday, June 13, 2009
Mortgage Modification Program Assistance in NYC
While the specific information noted below is more applicable to New York City residents, individuals from other municipalities may find it beneficial as a starting point to researching whether similar programs exist locally or as a reference for creating similar agencies.
Recently an agency was created in New York City to assist homeowners who are heading towards foreclosure. It is called, Center for NYC Neighborhoods. Taken directly from their website, “The Center for New York City Neighborhoods (CNYCN) was created to coordinate and expand services to New York City residents at risk of losing their homes to foreclosure.” You can find more information at www.cynycn.org or by calling their Foreclosure Prevention Hotline, 646-786-0888.
This is not an endorsement, I am not affiliated with Center for NYC Neighborhoods, and I do not know how their programs actually work but in my capacity as a real estate salesperson, I like to pass on the information I find in these troubled times that may of assistance to homeowners. However, if you are in Queens, Long Island or the Bronx, and are interested in selling or buying a home, contact me directly at hidel.crr@gmail.com.
Recently an agency was created in New York City to assist homeowners who are heading towards foreclosure. It is called, Center for NYC Neighborhoods. Taken directly from their website, “The Center for New York City Neighborhoods (CNYCN) was created to coordinate and expand services to New York City residents at risk of losing their homes to foreclosure.” You can find more information at www.cynycn.org or by calling their Foreclosure Prevention Hotline, 646-786-0888.
This is not an endorsement, I am not affiliated with Center for NYC Neighborhoods, and I do not know how their programs actually work but in my capacity as a real estate salesperson, I like to pass on the information I find in these troubled times that may of assistance to homeowners. However, if you are in Queens, Long Island or the Bronx, and are interested in selling or buying a home, contact me directly at hidel.crr@gmail.com.
Tuesday, May 19, 2009
Update to First-Time Home Buyers Tax Credit
The Federal Housing Administration (FHA) is now going to permit its lenders to allow home buyers to use the $8000 tax credit for downpayments when purchasing a home. This was announced on May 12, 2009 by the Secretary of the U.S. Department of Housing and Urban Development, Shaun Donovan.
Wednesday, April 15, 2009
First-Time Home Buyer Tax Credit
An $8000 first-time home buyer tax credit was signed into law as part of the economic stimulus package.
The credit applies to 10% of the purchase price of a home and is capped at $8000 and unlike the earlier home buyer tax credit, this one does not have to be repaid.
A "first-time home buyer" for these purposes is defined as someone who has not owned a principal residence for three years before buying a house.
This tax credit applies only to 2009 buyers, that is, those who purchase a home after January 1st up to December 1st of 2009.
There are income limitations. Single buyers need a modified adjusted gross income of $75,000 ($150,000 for married couples) or less to qualify for the full credit. If you earn more, you may qualify for reduced credits.
Because this credit is "refundable," you may use it even if you don't have much tax liability.
You must own the home for at least three years. If the home is sold before then, you will have to return the credit to the government.
I hope this information has been of value to you.
The credit applies to 10% of the purchase price of a home and is capped at $8000 and unlike the earlier home buyer tax credit, this one does not have to be repaid.
A "first-time home buyer" for these purposes is defined as someone who has not owned a principal residence for three years before buying a house.
This tax credit applies only to 2009 buyers, that is, those who purchase a home after January 1st up to December 1st of 2009.
There are income limitations. Single buyers need a modified adjusted gross income of $75,000 ($150,000 for married couples) or less to qualify for the full credit. If you earn more, you may qualify for reduced credits.
Because this credit is "refundable," you may use it even if you don't have much tax liability.
You must own the home for at least three years. If the home is sold before then, you will have to return the credit to the government.
I hope this information has been of value to you.
Wednesday, March 4, 2009
Associated Press Story on White House Assistance for Homeowners
For those keeping track of Washington and the Housing Market, here is a recent story which I have cut and pasted from the Associated Press regarding assistance from Washington for home owners.
Title: Obama Administration Launches Housing Plan
Source: Yahoo News Financial Section, By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer 2 hrs 32 mins ago
WASHINGTON – The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
Borrowers, however, are being advised to be patient in their efforts to get help because mortgage companies are likely to be flooded with calls.
Government officials, launching the "Making Home Affordable" program also acknowledge that the initiatives are only a partial fix for a sweeping problem that has helped plunge the U.S. economy into the worst recession in decades. In fact, tens of thousands of homeowners in some of the most battered real estate markets — concentrated in California, Florida, Nevada and Arizona — won't be eligible for the two programs.
"It's not intended to prevent every foreclosure or to help every homeowner," a senior Treasury Department official told reporters. "It's really targeted at responsible homeowners."
There was also skepticism that banks would be willing to participate.
"I've just seen so many of the programs not work," said Pava Leyrer, president of Heritage National Mortgage in Randville, Mich. "It gets borrowers hopes up. They call and call for these programs and we can't get anybody to do them."
The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up to 4 million homeowner, the second to refinance up to 5 million homeowners into more affordable fixed-rate loans.
For the modification program, borrowers who are eligible will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program, which runs through 2012.
Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009, or earlier. Mortgages for single-family properties that are worth more than $729,750 are excluded.
Lenders could reduce a borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the mortgage is repaid.
If the plan works as intended, it could be a big plus for borrowers like Nick Kavalary, a network cable installer who lives outside Milwaukee.
Kavalary, 42, has been struggling with JPMorgan Chase & Co. to get a loan modification. He was finally approved for one this year, but it only cuts his interest rate to about 9.8 percent from 10.75 percent. Even at the lower rate, he said, making the payment is nearly impossible.
"If I can't pick up a second job, I'm going to lose this house," he said. "With the job market being the way it is, nobody's hiring nobody."
For the refinance program, only homeowners whose loans are held by Fannie Mae or Freddie Mac are eligible and have until June 2010 to apply.
Consumers should contact their loan servicer — the company that sends out their monthly bill — to find out if their mortgages are held by Fannie or Freddie. The two mortgage finance companies own or guarantee almost 31 million home loans — more than half of all U.S home mortgages.
Many mortgage brokers, however, are critical. They argue the fees imposed by Fannie and Freddie over the past year make it difficult for borrowers to afford to refinance. The two companies, which are now government controlled, have yet to detail how they will implement the plan, or whether any fees will be rolled back.
Meanwhile, action to put in place another part of Obama's housing plan is expected soon on Capitol Hill.
House Democrats agreed Tuesday to narrow proposed legislation that gives bankruptcy judges the power to change the terms of mortgage loans for debt-strapped borrowers.
In the latest version of the bill, judges would have to consider whether a homeowner had been offered a reasonable deal by the bank to rework his or her home loan before seeking help in bankruptcy court. Borrowers also would have a responsibility to prove that they tried to modify their mortgages.
A full vote in the House could come as early as Thursday.
___
Title: Obama Administration Launches Housing Plan
Source: Yahoo News Financial Section, By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer 2 hrs 32 mins ago
WASHINGTON – The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
Borrowers, however, are being advised to be patient in their efforts to get help because mortgage companies are likely to be flooded with calls.
Government officials, launching the "Making Home Affordable" program also acknowledge that the initiatives are only a partial fix for a sweeping problem that has helped plunge the U.S. economy into the worst recession in decades. In fact, tens of thousands of homeowners in some of the most battered real estate markets — concentrated in California, Florida, Nevada and Arizona — won't be eligible for the two programs.
"It's not intended to prevent every foreclosure or to help every homeowner," a senior Treasury Department official told reporters. "It's really targeted at responsible homeowners."
There was also skepticism that banks would be willing to participate.
"I've just seen so many of the programs not work," said Pava Leyrer, president of Heritage National Mortgage in Randville, Mich. "It gets borrowers hopes up. They call and call for these programs and we can't get anybody to do them."
The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up to 4 million homeowner, the second to refinance up to 5 million homeowners into more affordable fixed-rate loans.
For the modification program, borrowers who are eligible will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program, which runs through 2012.
Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009, or earlier. Mortgages for single-family properties that are worth more than $729,750 are excluded.
Lenders could reduce a borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the mortgage is repaid.
If the plan works as intended, it could be a big plus for borrowers like Nick Kavalary, a network cable installer who lives outside Milwaukee.
Kavalary, 42, has been struggling with JPMorgan Chase & Co. to get a loan modification. He was finally approved for one this year, but it only cuts his interest rate to about 9.8 percent from 10.75 percent. Even at the lower rate, he said, making the payment is nearly impossible.
"If I can't pick up a second job, I'm going to lose this house," he said. "With the job market being the way it is, nobody's hiring nobody."
For the refinance program, only homeowners whose loans are held by Fannie Mae or Freddie Mac are eligible and have until June 2010 to apply.
Consumers should contact their loan servicer — the company that sends out their monthly bill — to find out if their mortgages are held by Fannie or Freddie. The two mortgage finance companies own or guarantee almost 31 million home loans — more than half of all U.S home mortgages.
Many mortgage brokers, however, are critical. They argue the fees imposed by Fannie and Freddie over the past year make it difficult for borrowers to afford to refinance. The two companies, which are now government controlled, have yet to detail how they will implement the plan, or whether any fees will be rolled back.
Meanwhile, action to put in place another part of Obama's housing plan is expected soon on Capitol Hill.
House Democrats agreed Tuesday to narrow proposed legislation that gives bankruptcy judges the power to change the terms of mortgage loans for debt-strapped borrowers.
In the latest version of the bill, judges would have to consider whether a homeowner had been offered a reasonable deal by the bank to rework his or her home loan before seeking help in bankruptcy court. Borrowers also would have a responsibility to prove that they tried to modify their mortgages.
A full vote in the House could come as early as Thursday.
___
Saturday, February 21, 2009
Confused About Your Mortgage? Trying to Buy a New Home or Refinancing?
One of the things I hope to do over time with this blog is to give you information on people who might be good resources. Dean Graber is someone I met at a recent real estate seminar in Queens, New York. If you need help with your mortgage, refinancing, loan modification - before stressing yourself out, call or email him. If you are buying a home - call him. If you are involved in a short sale negotiation - can't emphasize it enough - call him. What was it that struck me about Dean? He had a quick presentation that was easy to understand. That's important, you want someone who is going to help you, not confuse you. In addition, Dean is up to date with the expected changes coming down the pipeline as part of the economic stimulus package. Finally, and just as important, he is professional and personable. As tough as these issues are to work through, you want someone who doesn't create more stress with "attitude." His contact information is as follows: phone, 516-527-9549; email, deanwgraber@aol.com and fax number, 800-521-3756.
Tuesday, January 27, 2009
Check Out This Reuters Article Regarding Foreclosures
I thought this online Reuters article by Alister Bull and Mark Felsenthal would be of interest to anyone (really, all of us) interested in an update about the foreclosure situation. I could have summarized it but this is a very important issue and sometimes with such matters it is best to read what was reported in the way it was originally reported.
The article was entitled: Fed Takes Major Step Toward Stalling Foreclosures and it appeared on the Yahoo site on Tuesday, January 27th. By the way, if you go onto Yahoo News, go to the "more on real estate" area for archived articles on this issue from various news sources.
WASHINGTON (Reuters) – The Federal Reserve on Tuesday took a step toward easing mortgage foreclosures threatening millions of Americans, announcing that it would write down troubled mortgages to keep people in their homes.
Fed Chairman Ben Bernanke said the initiative would specifically include $74 billion of assets held in connection with the bailout last year of Bear Stearns and American International Group.
"The goal of the policy is to avoid preventable foreclosures on residential mortgage assets that are held, owned or controlled by a Federal Reserve Bank," he said in a letter to Rep. Barney Frank, chairman of the House of Representatives financial services committee.
The Fed was instructed by the law last year that authorized a $700 billion bank bailout with public money that it must do what it can to minimize foreclosures.
The Bear Stearns and AIG rescues were done outside of this emergency measure, and President Barack Obama has said that part of the second $350 billion tranche of the money, that was released to him by Congress earlier this month, will be used to stem the tide of foreclosures.
Private economists estimate that millions of Americans are at risk of losing their homes after the collapse of the U.S. housing market savaged house prices and forced up unemployment as the economy slid into recession at the end of 2007.
Frank, a Massachusetts Democrat, has been among U.S. lawmakers pressing the Fed and the government to do more to prevent mortgage foreclosures and he said the decision by the Fed was a "major breakthrough."
"We just had very good news from Mr. Bernanke from the Federal Reserve, who has just announced a very significant increase in Federal Reserve policies to reduce foreclosures," Frank told MSNBC television in an interview.
MODIFYING RISKY LOANS
Research firm RealtyTrac says 850,000 foreclosed homes are already on the market and expects this number to rise by another 1 million homes in 2009, with 2 million more homes entering the foreclosure process during the same period.
Senate Banking Committee Chairman Christopher Dodd separately said that the Fed's decision was an important step.
"I am delighted to hear the news. I don't know details of it yet. I am very encouraged by that," he told reporters.
"We have been trying to get, as you know, for some time in the previous administration (of President George W. Bush) for them to take steps on foreclosure mitigation.
"They refused to do so for whatever reason. I am very pleased that the Fed is stepping up," Dodd said.
In a bold effort to unscramble complex mortgage-backed securities at the heart of a financial crisis sparked by the housing market decline, the Fed said it would encourage mortgage servicers to modify loans at risk of default.
It will also "assist" the loan servicer in making modifications, according to a document made public by the Fed on Tuesday, entitled "Homeownership Preservation Policy for Residential Mortgage Assets."
The Fed has said it will purchase up to $500 billion of mortgage-backed securities by the end of June to make home loans more affordable to boost demand for houses.
Mortgage-backed securities pool many different mortgages, which makes them extremely tricky to separate in a loan modification designed to prevent foreclosure.
The Fed said it would consider reducing the interest rate paid on mortgages at risk of default, extending the term of the loan, and accepting "a deferral or reduction of the outstanding principal balance of the loan," according to the Fed document.
(Additional reporting by Rachelle Younglai in Washington and Helen Chernikoff in New York; Editing by Jan Paschal)
The article was entitled: Fed Takes Major Step Toward Stalling Foreclosures and it appeared on the Yahoo site on Tuesday, January 27th. By the way, if you go onto Yahoo News, go to the "more on real estate" area for archived articles on this issue from various news sources.
WASHINGTON (Reuters) – The Federal Reserve on Tuesday took a step toward easing mortgage foreclosures threatening millions of Americans, announcing that it would write down troubled mortgages to keep people in their homes.
Fed Chairman Ben Bernanke said the initiative would specifically include $74 billion of assets held in connection with the bailout last year of Bear Stearns and American International Group.
"The goal of the policy is to avoid preventable foreclosures on residential mortgage assets that are held, owned or controlled by a Federal Reserve Bank," he said in a letter to Rep. Barney Frank, chairman of the House of Representatives financial services committee.
The Fed was instructed by the law last year that authorized a $700 billion bank bailout with public money that it must do what it can to minimize foreclosures.
The Bear Stearns and AIG rescues were done outside of this emergency measure, and President Barack Obama has said that part of the second $350 billion tranche of the money, that was released to him by Congress earlier this month, will be used to stem the tide of foreclosures.
Private economists estimate that millions of Americans are at risk of losing their homes after the collapse of the U.S. housing market savaged house prices and forced up unemployment as the economy slid into recession at the end of 2007.
Frank, a Massachusetts Democrat, has been among U.S. lawmakers pressing the Fed and the government to do more to prevent mortgage foreclosures and he said the decision by the Fed was a "major breakthrough."
"We just had very good news from Mr. Bernanke from the Federal Reserve, who has just announced a very significant increase in Federal Reserve policies to reduce foreclosures," Frank told MSNBC television in an interview.
MODIFYING RISKY LOANS
Research firm RealtyTrac says 850,000 foreclosed homes are already on the market and expects this number to rise by another 1 million homes in 2009, with 2 million more homes entering the foreclosure process during the same period.
Senate Banking Committee Chairman Christopher Dodd separately said that the Fed's decision was an important step.
"I am delighted to hear the news. I don't know details of it yet. I am very encouraged by that," he told reporters.
"We have been trying to get, as you know, for some time in the previous administration (of President George W. Bush) for them to take steps on foreclosure mitigation.
"They refused to do so for whatever reason. I am very pleased that the Fed is stepping up," Dodd said.
In a bold effort to unscramble complex mortgage-backed securities at the heart of a financial crisis sparked by the housing market decline, the Fed said it would encourage mortgage servicers to modify loans at risk of default.
It will also "assist" the loan servicer in making modifications, according to a document made public by the Fed on Tuesday, entitled "Homeownership Preservation Policy for Residential Mortgage Assets."
The Fed has said it will purchase up to $500 billion of mortgage-backed securities by the end of June to make home loans more affordable to boost demand for houses.
Mortgage-backed securities pool many different mortgages, which makes them extremely tricky to separate in a loan modification designed to prevent foreclosure.
The Fed said it would consider reducing the interest rate paid on mortgages at risk of default, extending the term of the loan, and accepting "a deferral or reduction of the outstanding principal balance of the loan," according to the Fed document.
(Additional reporting by Rachelle Younglai in Washington and Helen Chernikoff in New York; Editing by Jan Paschal)
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