Washington, December 15, 2008

A federal mortgage interest buy-down program would help spark the housing market, the National Association of Realtors® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency. NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program.

In the letter to FHFA, NAR shared three potential implementation procedures for a federal buy-down plan:

• TARP would fund the payment of points at the individual level.
• The Federal Home Loan Banks would raise funds by selling below-market-rate bonds to the Treasury Department for them to make the 4.5 percent interest rates available to lenders.
• Fannie Mae and Freddie Mac would purchase mortgages at the 4.5 percent interest rate but pay lenders the market rate.

“The buy-down program would complement other initiatives and help stabilize, stimulate and revitalize the housing market,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “We must address the foreclosure crisis and increase housing demand. Lower interest rates and foreclosure mitigation are two sides of the same coin. Together they represent the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR has calculated that a 1 percentage-point decrease in mortgage rates would result in an additional 500,000 home sales.

In addition to suggesting that TARP assets be used to buy-down mortgage interest rates, NAR has recommended other principles that would help create long-term stability by ensuring that safe and affordable mortgages are available throughout the nation:

• The higher loan limits passed in the economic stimulus bill earlier this year should be made permanent.
• The federal government should ensure sufficient capital to support mortgage lending in every type of market.
• The temporary $7,500 tax credit for first-time home buyers should be extended to all home buyers and the repayment requirement eliminated.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Source: National Association of REALTORS

Fight Back Against Debt Collectors

Reported by: John Matarese Email: jmatarese@wcpo.com Last Update: 11/19 7:57 pm

Related Links Sample Letters and Phone Scripts It's happening to more and more of us in today's troubled economy: You receive a threatening call or letter saying you owe money. And if you do nothing... The calls get more frequent, and more nasty to the point of harassment. Are they allowed to do this? And how can you stop them? More and More Receiving Calls The calls come at all hours of the night....and people say messages like the following are crossing the line. "I am like right now climbing into your family background. I am going to dig up so deep." Every week, I hear from viewers fending off debt collectors. Denise is a law abiding Cincinnati-area mom. But she tells me one day "I got a letter claiming I owed someone 550 dollars." Mike is a Northern Kentucky businessman who tells me he's never fallen behind either. But, says, "I got a call claiming I owed some bill." More Aggressive than Ever Attorney Billy Boward has filed dozens of lawsuits against debt collectors, for using what he claims are harrassing or abusive methods. Among them: Calls like this one, allegedly on behalf of the car-seller JD Byrider, and one of its Florida locations. "Now I am going to have to take it to a different level...." This message was left for a woman who was late on her car payment. "I'm going to turn it up a notch. I'm going to have to put this car on TV as being missing, which I can do. I can go on cable and do that. It's going to embarrass the daylights out of you. It's going to embarrass the daylights out of your mom. And I think you've got kids, too, if I'm not mistaken." One of Billy Howard's lawsuits was filed on behalf of Dane McLeod, whose husband Stanley was behind on the mortgage. Stanley explained he had heart problems and had to be rushed to a hospital by helicopter. The collector's alleged response? "Stanley McLeod you need to call Greentree and get your act together and make a payment on your mortgage. Quit playing games. Why don't you have that helicopter pick you up and bring that payment to the office." 4 months later, Stanley was dead. Know Your Rights So what are your rights? Consumer advocates say debt collectors: Can't harrass or lie. Can't present themselves as attorneys. Can't call before 8am or after 9pm, unless you agree. Can't call you once you write, telling them to stop. And thats the key: Sending them a letter, certified mail. One website -- Fair-Debt-Collection.com -- has sample phone scripts and letters for you to use, if a collector calls you (click above). If you dont take action, you can end up like Kelly Cassidy.... in tears.  Kelly says "All I can do is try to correct them...And its hard to do when its someone who doesn't care. That's how I feel!" Postcript A spokesman for "Greentree Servicing" says they don't comment on pending lawsuits. JD Byrder would not make any comment either. Byrider franchises in Ohio are not involved in this case. You can find out more about your rights -- including a link to that helpful website --regarding debt collection by clicking the link above...so you don't waste your money. I'm John Matarese.

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Source: Consumer Reports

• You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a "short pay" or "short sale."
  
  Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department.” More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
  
  Now mind you if you are doing this for yourself (you as the investor), you do not need a license. But if you are trying to do it for others, you will need a license. Also consider investing with other real estate ventures as defined in the book below.

Why is my Home Not Selling? 

The current buyer's market has left many people that are selling their home wondering what on earth
they need to do to get their home sold.  With so many homes on the market today, there are a few keys
to getting your home sold at a reasonable price.

What many home sellers don't understand is that the longer their home is on the market, the less money they
will get for it when it finally does sell. "Days on the market" is a very important questions many buyer's
look at.  If your home is on the market for let's say, 200 days, a buyer may start to wonder what it is
about your home that makes people not want to buy it.

The number one reason a home doesn't sell is price.  That all-to-sensitive number that everyone is
looking at.  It's the number that determines what home a buyer will buy and ultimately how much
money you will make when you sell.  All Realtor's have the same access to the multiple listing service
in order to form what they call a CMA (Comparable Market Analysis).  That is, seeing what is
comparable to your home in the area and seeing what has sold in the last 6 months.  That is how a
a Realtor can help you make the right choice of what price to list your home at.  With so many homes
on the market today, $5000 can truly make the difference if your home sells or not. Houses
are kind of like stock, hopefully they go up in value, BUT, sometimes they go down.  Bottom line is that your
home is worth what today's market says it's worth, regardless of what it was worth three, five or ten years ago.

Listen to what Realtors that have shown your home have to say about it.  If the showing Realtor comments
on improvements that need to be done, have them done as quickly and professionally as possible. (Promising you
will do it if they write an offer or telling them you will give them an allowance to get it done just gives that
buyer one more reason to just look elsewhere.)  If the Realtor says the carpets are stained or the walls
are too many colors, paint or re-carpet.  Would you really want to take the chance that the only reason that buyer
didn't buy your home was because you had a crazy obsession with the color purple and shag green carpet?
Many times the showing Realtor is really giving you helpful hints as to why your home is not selling.

Another reason your home doesn't sell is passing on showings.  If someone want to see your home at 8pm
by all means, let them.  Buyer's are few and far between but there are thousands of homes on the market.
If they can't see your home when they want to see it, chances are, they will pass and just look at other
homes that are available when they are. Ease of showing is also a valid point.  Does your home show well?
You must think like a buyer.  Your home must be clutter free and clean.  A buyer should be able to move
into your house without doing a thing. (This includes, cleaning the carpets, patching walls!)
Bottom line, NEVER pass on a showing. 

Lastly, when in doubt, lower the price.  That almost guarantees at least a couple of showings.  Also, talk
to your Realtor about how much you should lower the price.  Dropping it $1000 really isn't that big of a jump.
Here, I'll give you an example: Let's say a buyer is buying up to $125,000.  Your home is listed at $127,000.
You then decide to drop your price to $126,000.  You would be better off to drop it to $124,900.  That will
capture the buyers that are buying up to $125,000.  It's always best to drop it to the nearest 5, or 10
thousand dollar mark.  Well, I hope this blog helps you sell your home.  Good Luck!

The National Association of REALTORS points out that the following facts are often overlooked by media reports:

-While it's true that the median price of an existing single-family home actually did drop by 1.8 percent from 2006 to 2007, it's important to put this into context.  Over the previous six years--the typical length of time an owner stays in one home--the median price has risen nearly 40 percent.  Those owners gave back just about 2 percent of that gain--leaving them with a very handsome appreciation rate.
 
-Mortgage interest rates today are hovering around 6 percent--about the same as they were 45 years ago.  Interest rates on both fixed-rate and adjustable-rate mortgages have been trending down.  Falling rates do not portend a recession.

-Interest rates on jumbo loans, however, (those over the Fannie Mae and Freddie Mac loan limit) remain well above the conventional mortgage rates.  Therefore, it isn't surprising that the share of single-family homes selling for more that $500,000 (many of which rely on jumbo loans) fell to 12.4 percent of transactions in December 2007 from 14.2 percent a year earlier.  This could also account for some of the drop in the median price last year. 

-Low mortgage rates trump the job market during recessions.  The last recession was in 2001 and the Fed was cutting rates and mortgage rates were falling. Homes sales then began to rise strongly. 

-Past deep housing recessions were accompanied by prolonged job losses and rising interest rates.  We have falling interest rates today.

-The economy added about 4 million jobs over the last two years.  Household formation is about half of what it should be given the employment growth, which indicates that many buyers are sidelined right now. 

-When the housing market begins to recover, this usually signals the start of an economic recovery. 

-Today's low interest rates will lessen the pressure on foreclosures.  Rising affordability assures higher home sales and home prices.  Furthermore, low rates lessen the burden on existing homeowners with ARMS because the resets are not as financially painful.

-The bottom line--We have historically low interest rates and we will likely avoid recession (but the economic expansion will be slow in 2008).  The high interest rates that have characterized past recessions are nowhere in sight.

Source:  National Association of REALTORS

1.) A REALTOR knows your neighborhood and has a good track record in your community will go a long way in helping to find a buyer.

2.) Clean out the clutter.  Open spaces look best.  Clean, and clean some more to make a good first impression. 

3.) Make any improvements that will improve the show of your home.  When possible, stick with the simpler (and less expensive) options to be sure the buying price covers your investment. 

4.) Know the fair market value of your home.  Your REALTOR can help assess the cost.  You may also want to have the home appraised.

5.) A REALTOR can help you objectively set the price so that it reflects the value of your home and the trends of the surrounding community.

6.) Are you set on your price, or eager to move?   How low are you willing to go? 

7.) Get pre-approved for your next move.  If you're looking to buy make sure you know your financial situation. 

8.) Commission, ad costs, attorney fees, taxes and prorated costs may all come into play.  REALTORS deal with transactions every day and can give you estimated costs. 

9.) Clean windows, open curtains, turn on lights and display fresh flowers.  A bright house is welcoming.

10.) Be ready and willing to have your home shown any day, even with short notice.  Making it difficult to see will also make it difficult to sell.

1. Commit yourself to your new home for at least two years before moving into a new home.

2. Money matters. If you're considering a mortgage, shore up your credit and get a copy of your credit report.

3. Get pre-approved and save yourself the time and grief of looking at houses you can't afford.

4. Determine how large your mortgage can be. Explore different loan options to determine what is best for you.

5. Decide what (and where) you want to buy. Prioritize your needs (i.e.,location, schools, amenities).

6. Consider your re-sell value. Even if you don't have school-aged kids, a strong school district is a good thing.

7. Do your homework. Bid based on sales trends of similar homes in the neighborhood.

8. Calculate the hidden costs such as property taxes, insurance, maintenance and association fees.

9. Don't be house poor. Double and triple check to be sure you haven't maxed yourself out on the cost of your home.

10. Hiring a Realtor to get the most for your money. It pays to have someone looking out for your interests.