New Listing in Power Ranch!

Three bedroom, two and a half baths, 1340 square feet in the beautiful master planned community of Power Ranch.

Only $120,000! Visit www.BuyOrSellAHouseAZ.com for more details

New Higley Estates Listing!

This one will move quickly!

$375,000

3751 square feet

Five bedrooms, loft, bonus room, 4.5 baths, 3 car garage, pool

Visit http://www.buyorsellahouseaz.com/ for more information

Top Tips to Improve your Credit

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

Should You Refinance?

Rates are still lower than ever. Is it time to consider refinancing? If you have an FHA loan, you can refinance without a new appraisal and still get a new rate in the low fives.

http://www.frontdoor.com/tools/calculators/Should_I_refinance_my_mortgage.aspx

Contact Leann at The Lending Lady (Leann@TheLendingLady.com) to find out how much your payment can go down.

New Tax Credit Information!

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies for the Extended Credit?
First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
The price of the home.
The buyer's income.

Price:
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income:
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Spooky Homes For Sale!

Happy Halloween!

Some fun information for today... Frontdoor.com has information on six "haunted" houses that are currently on the market. If you know anyone who is looking for one, let me know!

http://www.frontdoor.com/buy/Surreal-Estate-6-Spooky-Homes-for-Sale/55343/p1/?nl=FD_v099_Scary

Valley Median Home Prices Rise

The median price of a Valley home has ticked up to $135,000 after falling to a 10-year low of about $120,000 six months ago.

The current median is half of what the record median high price for the market was in 2006, but it is heading in the right direction. Valley home prices started falling in mid-2007 but didn't plummet until late in the year when lenders placed thousands of foreclosure homes on the market all at once and began accepting low-ball offers.

The supply of foreclosure homes for sale in the Valley has also fallen, another good sign for the market. There currently are about 4,500 foreclosure homes listed for sale, compared with more than 20,000 in February.

The federal government's plan to push more lenders to restructure the mortgages of borrowers facing foreclosure could help ensure foreclosures don't soar again.

A full recovery isn't imminent, but the latest signs suggest the Valley's housing market is beginning to pull out of its nose dive.

New Home by Design Magazine

Did you receive your new issue? If you didn't and would like to be added to my mailing list, let me know!

New Rentals Available

I have two new rental properties available.

10658 E Lobo Ave, Mesa 85209

Three bedrooms, plus den, plus loft

Formal dining room, great room

3.5 car garage

Heated pool & spa

Every upgrade you can imagine

2746 square feet

$1,850 per month

8707 S 49th, Laveen 85339

Three bedrooms, formal living & dining room

2 car garage

New carpet, new paint throughout

1535 square feet

$950 per month- includes alarm system monitoring

Time is Running Out!

Time is running out for the first time home buyer's tax credit of $8,000. In order to qualify you must close on your new home by November 30th!

Remember, this credit is available for anyone who hasn't owned a home in the past three years- not just "first timers".

Take Charge: Is Your Credit and Debt Profile Optimized?

Here are some simple first steps to consider in liability management:

STEP 1: Understand How Credit Works–Now is not the time to be content with understanding 80% of what you need to know about your credit or saying, “I’ll get to it tomorrow because I don’t have time today.” Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works to assure they have the best credit and debt profile possible. In most cases they build credit over a lifetime of “trial and error.” The constantly changing credit environment creates a situation whereby everyone can use a trained professional to help keep them educated.

STEP 2: Continually Evaluate and Monitor the Health of Your Current Credit Profile–The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor.

STEP 3: Optimize Your Credit–Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their “preferred” interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly?

STEP 4: Rethink New Purchases–Excellent credit is like an insurance policy. When you need to use it you want to help ensure you qualify for the preferred interest rates and terms that will give you the best payment options based on your needs and capabilities. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material and impactful change in your profile overnight is very difficult.

Don’t let anyone mislead you. It takes time, knowledge and planning to assure you build, optimize and manage your personal credit and debt profile so that you can help maintain the affordability of what you have and/or create a better opportunity to qualify for preferred interest rates and terms on purchases requiring additional credit. Effective liability management all starts with the four steps above.

Budget Home Updates

From HGTV FrontDoor Real Estate

I know we all have things we'd like to update in our homes. Here are a couple of tips to spruce up your house now that will help it sell later!

Create curb appeal.
First impressions are critical, especially in a competitive market. If half the homes in your neighborhood are boasting for-sale signs, curb appeal can give your property the edge -- so put a fresh coat of paint on your siding, re-stain your deck or power-wash your patio, and trim back any overgrown shrubs. And don't overlook your front door, which can be a make-or-break detail for would-be buyers. "It's the first thing people see when they pull up, so do they want to come in or not?" Matzke says. If your entryway is lackluster, consider investing in a mahogany door or a decorative-glass style.

Lighten up.
It only takes a few dollars to make your home feel infinitely more warm and welcoming. If you've got clutter, box it up and put it in storage. Replace your mood lighting with the max allowable wattage for your fixtures. Tear down faded or dated wallpaper, and grab a few gallons of paint to cover up blemishes or soften a bold color palette. (So long, mauve living room!) "Neutral, neutral, neutral," Matzke advises. "It sounds really boring, but most people are looking for a house they can move into right now."

Modernize for less.
Kitchens and baths are big-ticket items, but there's no need to plunk down thousands of dollars on a total overhaul. In these rooms, even minor upgrades -- such as new faucets or fresh lighting fixtures -- can reap major rewards, and a little elbow grease can go a long way. "Ripping out and replacing kitchen cabinets is great, but unless they're really horrid, it's probably better just to enamel them," Matzke says. You can also find bargains on newer appliances and plumbing hardware at sites like eBay or Craigslist. In the bathroom, replacing a tired vanity with a pedestal sink can instantly renew the decor and create more space, and outdated vinyl flooring can be replaced with inexpensive ceramic tile. Many big-box home stores offer options for around a dollar per square foot, so tiling a small room won't strain your wallet.

Another Fun Fact...

Did you know the average age of a Realtor (R) is 54?

Return on Investment

Fun fact of the day: Per HGTV most homes receive a 74% ROI on basement remodels. If only we had more basements in Arizona! Stats that are more relevant to us to follow soon...

Credit-card Defaults Less Likely to Rise

Here is some good news for consumers!

Aug. 31, 2009 08:31 AM Bloomberg News

Aug. 31 -- U.S. credit-card defaults are less likely to rise in the fourth quarter, as they typically do, as delinquencies stabilize and monthly payment rates improve, according to Fitch Ratings.

The economic situation may have caused some front loading of losses this year, analyst Cynthia Ullrich said today in a statement accompanying the release of Fitch's Prime Credit Card Charge-off Index.

Write-offs for loans deemed uncollectible fell to 10.55 percent in July after setting record highs for five straight months as consumer credit quality showed signs of life, Fitch said. Moody's Investors Service, which reported a similar decline on Aug. 20, said the trend may require the company to revise its forecast that charge-offs will peak at 12 percent to 13 percent in 2010.

Defaults, driven by unemployment and bankruptcies, have squeezed credit-card issuers profits. The U.S. jobless rate fell to 9.4 percent in July, the first decline since the recession began in December 2007.

Existing home sales jump to two-year high

Aug. 21, 2009 07:22 AMBloomberg News

Sales of existing U.S. homes jumped more than forecast in July to the highest level in almost two years, signaling the housing crisis that crippled the world's largest economy is easing.

Purchases climbed 7.2 percent to a 5.24 million annual rate, the most since August 2007, the National Association of Realtors said in Washington. The gain was the biggest since records began in 1999. The median price fell 15 percent.

Foreclosure-driven declines in prices, government credits for first-time buyers and near-record-low borrowing costs may keep stoking demand, helping the economy recover from the worst recession since the 1930s. Ongoing job losses are a reminder that more Americans will probably lose their homes, indicating a rebound will be slow to take hold.

The housing market remains on the road to recovery due to good affordability, Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, said before the report. Even so, it's probably relegated to the slow lane until joblessness and credit standards ease.

Stocks jumped and Treasury securities dropped after the report added to evidence the housing market was turning. The Standard & Poor's 500 index rose 1.5 percent to 1,022.67 at 10:06 a.m. in New York. The yield on the 10-year note jumped to 3.50 percent from 3.43 percent late yesterday.

Exceeds Forecast
Existing home sales were forecast to rise to a 5 million annual rate, according to the median forecast of 64 economists in a Bloomberg News survey. Estimates ranged from 4.8 million to 5.25 million. Junes pace was unrevised at 4.89 million.
Sales had reached a 4.49 million pace in January, their lowest level since comparable records began in 1999.

Purchases of existing homes increased 5 percent compared with a year earlier. The median price dropped to $178,400 from the $210,100 in July 2008.

The number of previously-owned unsold homes on the market jumped 7.3 percent to 4.09 million in July, a notable increase, according to Lawrence Yun, the Realtors chief economist. At the current sales pace, it would take 9.4 months to sell those houses, the same as in June.
A seven months supply is usually consistent with stabilization in prices, Yun said last month.

Distressed Sales
The share of homes sold as foreclosures or otherwise distressed properties held to 31 percent in July, he said.
Today's report showed sales of existing single-family homes increased 6.5 percent to an annual rate of 4.61 million. Sales of condominiums and co-operatives climbed 13 percent to a 630,000 rate.

Purchases increased in three of four regions, led by a 13 percent jump in the Northeast.
The figures are compiled from contract closings and may reflect purchases agreed upon weeks or months earlier. Many economists consider new-home sales, recorded when a contract is signed, a more timely barometer of the market.

The Commerce Department may report next week that purchases of new houses rose in July to the highest level since November, according to the Bloomberg survey.
Home Depot Inc., the largest home-improvement retailer, is among businesses cutting costs to ride out the housing recession. The Atlanta-based company reported second-quarter profit that fell less than analysts estimated and raised its annual earnings forecast after trimming expenses, even as it projected a sales decline for the year.

Better Performance
Performance across most of our regions is better, Chief Executive Officer Frank Blake said on a conference call with analysts on Aug. 18. But caution is still appropriate, and we remain concerned by the high level of foreclosure activity, he said.

About $3.4 trillion worth of houses are at risk of default because the owners owe more than the property is worth, Santa Ana, California-based First American CoreLogic said last week. By putting more homes on the market, foreclosures are keeping inventory higher than levels consistent with stable prices.

Obama administration efforts to revive housing include an $8,000 federal tax credit for first-time buyers who complete the transaction before Dec. 1. The government also is offering lenders incentives to modify the terms of delinquent mortgages, and the Federal Reserve is buying mortgage-backed securities to help reduce borrowing costs.

22% Interest Free Loan

Just announced!! The state is offering a 22% interest free loan to help buyers purchase a foreclosed home. Call now for details and program restrictions. HURRY!

Rent Vs. Buy Calculator

Click on the link below to help you make the decision that is right for you!

http://www.frontdoor.com/tools/calculators/rent_vs_buy.aspx

Housing Market May Be Near Bottom

by Peter Corbett - Jul. 30, 2009 10:42 AM
The Arizona Republic

Has the local real estate market hit bottom?
That's what everyone wants to know. The Valley housing market is "near the bottom," according to a Grubb & Ellis BRE Commercial report updated this past week.
"However, stabilization may be deferred somewhat by the global recession - a context that will affect most economic activity," the report said.

Other reports indicate home values in the Valley are still declining.
The Case-Shiller Price Index released earlier this week shows that Phoenix-area prices declined for the 36th consecutive month in May.

Las Vegas, Los Angeles, Miami and Seattle were also down in May while 15 other major cities showed price increases in the Case-Shiller study, which relies on repeat home sales to track markets.

"Everyone agrees it's a slow process," Ross Smith, Grubb & Ellis senior vice president, said of the recovery.
"If we've stabilized, that's huge," he said. "If people see the price may go up if they don't act soon, that will get things moving again."

One sign of the improving market is builders are once again buying finished lots to resume building, Smith said.

High-end market still troubled
Scottsdale's housing market is more mature and was not as deeply affected by the downturn and foreclosures as the newer fringe areas, Smith said.
But financing constraints are still hurting sales at the upper end of the Scottsdale market, he added.

Still, sales are picking up, and John Hall & Associates in the Northeast Valley is on pace to have its best sales month in more than three years, Realtor Phil Sexton said.
"It's the tale of two markets," he explained.
He said most of the activity involves homes priced at less than $450,000.
There is a lot of downward pressure for homes priced above $450,000, and it's a buyer's market, Sexton said.

The upside of the Valley's declining home prices is affordability, especially for first-time buyers who are eligible for an $8,000 federal tax credit if they buy a home before Dec. 1.
More than 81 percent of the homes sold in the Valley in the first quarter were affordable to families earning the area's median income of $65,900, according to the National Association of Home Builders.

Home prices increase from April to May

Jul. 28, 2009 06:36 AM
Associated Press

NEW YORK (AP) - Home prices in May posted their first monthly increase since the summer of 2006, indicating prices are finally stabilizing, data Tuesday showed.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose 0.5 percent from April, but was still 17.1 percent below May a year ago. Thirteen cities showed monthly increases with the best results in Cleveland, Dallas and Boston.

The 10-city index rose 0.4 percent from April, but was off 16.8 percent from May last year. It was the fourth consecutive month both indexes showed slowing price declines.

The 20-city index has lost more than 32 percent since its peak three years ago, putting home prices back to mid-2003 levels.

"We likely do have a way to go before we see sustained home price appreciation," said David M. Blitzer, chairman of the S&P index committee.

The Case-Shiller index tracks repeat sales on a specific group of homes in each city. Sales between related parties, such as family members, are excluded.

Inventory Graph

I thought this graph gave some good news for valley real estate...

Home resales in U.S. rise 2.4% in May

Jun. 23, 2009 07:21 AM
Bloomberg News

Home resales in the U.S. rose in May for a second month as record foreclosures caused prices to drop.

Purchases increased 2.4 percent to an annual rate of 4.77 million, lower than forecast, the National Association of Realtors said today in Washington. The median price fell 17 percent, the third-largest decrease on record.

Tax breaks for first-time buyers in the Obama administrations stimulus plan, falling property values and lower mortgage rates have helped support the market. At the same time, any recovery is likely to be limited with unemployment rising and borrowing costs shooting back up.

Were seeing some signs of stability, Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida, said before the report. A lot is going to depend on mortgage rates if they stay low. You're still looking at a lot of supply out there and its going to take a long time to work through all of that.

Economists forecast existing sales would rise to a 4.82 million rate, according to the median of 74 projections in a Bloomberg News survey. Estimates ranged from 4.6 million to 5 million. Aprils reading was revised down to a 4.66 million pace from 4.68 million.

Mays sales pace was the strongest since October and last months gain marked the first back-to-back increase since 2005.

May traditionally is one of the top three sales months of the year as the weather turns warmer and families prepare to move before the start of the next school year, according to the NAR. The group adjusts the figures for these seasonal variation in order to facilitate month-to-month comparisons.

Sales were 3.6 percent compared with a year earlier.

The number of houses on the market dropped 3.5 percent to 3.8 million in May, NAR said. At the current sales pace, it would take 9.6 months to sell those homes, compared with 10.1 months in April.

The median price of an existing home fell to $173,000 in May from $207,900 a year earlier, the NAR said. The price has fallen as sales slumped and financial institutions auctioned off foreclosed properties.

While the loss has devastated some family, others were able to buy a house for the first time because of the drop in values. The federal government is trying to stabilize the market by offering lenders incentives to modify the terms of delinquent mortgages and the Federal Reserve has pledged to buy mortgage- backed securities to free up funding for home loans.

The share of homes sold as foreclosures or otherwise distressed properties was about 33 percent last month, down from the 40 percent to 50 percent seen earlier in the year, NAR said.
Foreclosure filings in the U.S. surpassed 300,000 for a third straight month in May and may reach a record 1.8 million by the first half of the year, RealtyTrac Inc. said June 11.

The jump in foreclosures is one of the reasons more first- time buyers have entered the market. First-time buyers accounted for about 29 percent of May sales.

The Obama administrations stimulus plan provided an $8,000 tax credit for first-time home buyers for purchases completed before Dec. 1.

Still, soaring unemployment and high levels of debt will put home ownership beyond the reach of would-be buyers even as home prices fall, according to a report yesterday by Harvard University's Joint Center for Housing Studies.

Mortgage borrowing costs are also starting to climb. The rate on a 30-year fixed loan has averaged 5.42 percent so far this month, up from 4.86 percent in May, according to figures from Freddie Mac. The rate reached 4.78 percent in April, the lowest level since records began in 1972.

How to Sell Your House Fast When Foreclosure Looms

By Tara-Nicholle Nelson, Esq., FrontDoor.com

When foreclosure looms, many homeowners try to sell their homes. For them, the goal is not just to get the home sold, but to do it quickly. Foreclosure rates are the highest in buyer's markets, when homes take a longer than average time to sell. What's a homeowner to do? Get aggressive, and get your home sold fast!

As a seller, you control the only three factors that influence whether your home sells quickly: pricing, marketing and condition. Here are some easy steps and insider secrets to make your home fly off the market in record time!

Pricing Your House

Don't try to salvage equity that does not exist. The fact that you bought your home for thousands more than homes are currently selling for in your neighborhood is irrelevant to the current fair market value of your home. You have to get clear on your goal: Are you trying to eke dollars out of your home by holding out for the highest price, or are you trying to avoid the seven-year black mark that a foreclosure will leave on your credit report?

Don't overprice your home. Get clear about what you want. If you'd like to get your home sold, make sure you price it aggressively and that means low. If your home is overpriced, some buyers won't even see it because it will appear to be out of their price range. Other buyers will focus on seeing properties whose sellers seem more realistic about pricing. Your house will sit on the market longer than it should and then the lowballers will crawl out of the woodwork.

Get real about what your home is worth. Have your real estate agent prepare a Comparative Market Analysis (CMA) that shows recently sold, similar homes in your neighborhood. If you're serious about getting it sold fast, take the sales prices (not the list prices) from the most recently sold homes in your area, and then go down 10 percent or so from there to get your list price. When a home is slightly underpriced, it seems like a bargain. More buyers will come out to see it, and chances of getting a qualified offer skyrocket.

Make sure you have an accurate understanding of how low you can go. A buyer is not going to pay a premium price for your home just because that's what you owe. If you owe more than your home is worth, you may need to consider a short sale (selling for less than you owe). A short sale blemishes your credit but not as badly as a foreclosure does!

Pending home sales rise 6.7 percent in April

Jun. 2, 2009 07:26 AM
Associated Press

Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.

The National Association of Realtors says its seasonally adjusted index of sales contracts signed in April rose 6.7 percent to 90.3. Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. It was the biggest monthly jump since October 2001.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales. The index was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January.

Top 10 Myths About Credit Scores Debunked

RISMEDIA, May 7, 2009-With many Americans considering a home purchase or refinance, seeking a new job, purchasing a new car, or striving to pay off credit card debt, 2009 might be the year of the credit score, said Bills.com president Ethan Ewing.

“Many Americans hold mistaken beliefs about credit scores,” cautioned Ewing, who heads the free online consumer portal at Bills.com. “Misinformation on television and in hearsay from friends and neighbors only compounds the problem.”

Here are the top 10 commonly held myths surrounding credit scores:

Myth #1: A credit score is a credit report. The credit report is a detailed listing of all debts and payments, going back throughout an individual’s entire payment history, Ewing explained. For each entry, it shows the creditor’s name, amount owed, the highest balance owed, the available credit, whether the account is open or closed (and who closed it), the number of late payments and whether the account is in default. A credit score is a number between 300 and 850 that is based on complex formulas incorporating all the data in the credit report.

Myth #2: Those who are not in default do not need to check their credit report. Everyone should check his or her credit report at least once a year (quarterly is not a bad idea in today’s market) to be sure the report contains no erroneous information. Visit www.annualcreditreport.com for a free, no-obligation copy of the report.

Myth #3: Checking a credit report damages credit. Reviewing your own credit information has no effect on a credit score, Ewing said. Neither does a credit report review by a prospective landlord or employer.

Myth #4: Everyone has one credit score. Credit score calculations are compiled using data from three different credit scoring agencies (Equifax, Experian and TransUnion). The resulting scores might vary slightly among the three agencies if they have slightly different information, but they will be similar.

Myth #5: Married couples share a credit score. If all of a couple’s accounts are joint, their scores will likely be similar, but each individual maintains a unique credit record and credit score. On the flip side, after a divorce, ex-spouses need to follow protocol to have creditors remove either party from a joint account.

Myth #6: Shopping for a loan destroys credit. It is true that “hard inquiries” - examinations of a credit score in preparation for extending credit can have a small negative impact on credit. However, credit bureaus take into account that consumers might inquire about a loan from multiple mortgage companies or auto lenders. “If multiple inquiries are received from the same type of lender within a 14-day period, the credit scoring companies do not count each inquiry against the borrower,” Ewing explained. But credit card account inquiries to open new accounts are counted individually.

Myth #7: To improve a score, close unused accounts. An important component of a credit score is available credit, or the unused credit that has been offered (on a credit card, for instance) but not used. Closing unused cards removes those available balances from the equation and can actually lower a credit score. Today, some banks are automatically lowering limits or closing accounts to reduce their own credit exposure. Individuals whose debt load is manageable should not experience an extreme effect on their scores.

Myth #8: To boost credit quickly, just pay off bills. Credit scores reflect performance over time. Scores will not change overnight.

Myth #9: For a fee, vendors can fix a bad score. Again, credit scores show historic behavior. Be cautious about companies that claim to “fix” or “repair” credit. “You yourself can remove inaccurate information,” Ewing said. “Beyond that, be aware that some companies send credit scorers a deluge of letters asking that they verify - and in the process, remove all past negative information. If and when truthful information is verified, however, it will quickly return to the credit report.”

Myth #10: Never get help - it is too hard on credit. It is true that credit counseling, debt settlement and bankruptcy all can cause significant black marks on a credit report. “If you are in real trouble, however, you can and should seek help,” Ewing urged. “Which option you choose will depend on the severity of your situation. Credit counseling can help to manage bills, and lower interest rates and monthly payments to creditors. Debt settlement firms can negotiate to lower the principal amount of your debts, typically providing a faster path to debt freedom than credit counseling. Bankruptcy, an even more serious alternative, should be discussed with a bankruptcy attorney.”

“Credit is important, but knowing the truth about credit might be even more important,” Ewing concluded. “Before taking action that might hurt or help your score, check your facts to be sure your actions will help your financial picture.”



Read more: http://rismedia.com/2009-05-06/top-10-myths-about-credit-scores-debunked/#ixzz0GTmiolHo&B

More First Time Buyer Tax Credit Info

Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Walking Away From Your Mortgage

Here is a great segment from the Today Show that was shared by one of my clients... (Thanks Jan!)

http://today.msnbc.msn.com/id/26184891/vp/30576183#30576183

Use tact with messy neighbors

by Ellen James Martin - Apr. 25, 2009 12:00 AM Universal Press Syndicate

With their third child on the way, a postal carrier and his homemaker wife were eager to sell their small, suburban house and move to a larger place in a nearby neighborhood. Their home was all ready for the market but for one snag: The next-door neighbor's yard was an overgrown mess, and they feared they'd take a hit on their home's price.
Homeowners who live near a neglected property may have to sacrifice as much as 20 percent off the market value of their home if nothing is done about the neighbors' mess, says Sid Davis, a real-estate broker and author of "A Survival Guide to Selling a Home."
Such a discount is especially likely nowadays, he says, "because buyers are looking for any rationale they can find to justify a deep price reduction."

But in many cases, home sellers living near "a neighbor from hell" can avoid such a costly discount by resolving the problem amicably, as the postal carrier managed to do, Davis says.
Though the neighbor refused to do the cleanup work on his unkempt yard, he agreed to let the postal carrier, along with other concerned residents, take on the task themselves. This helped lead to a successful sale for the postal carrier and his family.

Experts on neighbor relations say one key to such a positive outcome is for prospective sellers to try to resolve the problem with the neighbors' without an adversarial confrontation.
"Never blame your neighbors or call them jerks. Always treat people respectfully and avoid letting your anger get out of control," says Emily Doskow, an attorney and co-author of "Neighbor Law."

Here are a few pointers for home sellers seeking to get neglectful neighbors to cooperate:

• Try to reason with your neighbors.
Unless your neighbors seem dangerous or unbalanced, Doskow suggests you go to their home in person in hopes they could be willing to fix the problem voluntarily, as many people are.
"Go over to the neighbors' house with a positive attitude," she says. "Give them the benefit of the doubt. Start out with a statement such as, 'I'm sure we can resolve this together.' "
In a surprising proportion of cases, Doskow says residents who receive a neighbor's complaint in a tactful way will volunteer to take corrective action immediately.
"Take the approach that you want to provide information," she explains. "For example, you might say, 'I'm not sure if you're aware that your garbage is flowing into our yard.' "
When calling on your neighbors, Doskow recommends you go alone or with just one other person.

• Volunteer to do the corrective work on your neighbors' property.
In an ideal world, every resident of your community would maintain high standards of upkeep for their properties. They'd keep their lawns mowed, their bushes pruned and their trees trimmed. They wouldn't allow litter to accumulate in their yards or let a broken stair railing go unrepaired. But in the real world, some people are unwilling or unable to stay on top of their maintenance work, even when they're asked to do so politely, says Davis, the real-estate broker.
In your attempts to clean up a messy neighbors' property, you may be joined by other local residents who are equally concerned about the problem. Just remember to politely request the wayward neighbors' permission before you attack their cleanup work.

• Seek outside intervention as a last resort.
No matter how diplomatically you approach your neighbors, you may be repeatedly rebuffed. If so, you may need to take stronger action to get the problem solved, Davis says.
Short of a lawsuit, which could be very expensive and time-consuming, you may wish to consider filing a formal complaint with your neighborhood association (if you have one) or with your local government office, he says. Possibly you and your messy neighbors will be referred to a mediator in an attempt to settle your dispute harmoniously.

Caught in a mortgage mess? Contact your lender

Caught in a mortgage mess? Contact your lender
by Chad Graham - Apr. 26, 2009 12:00 AMThe Arizona Republic

Hiding in plain sight is one of the worst actions a homeowner who is facing foreclosure can take.
You won't save your house - or credit - by barricading the door and ignoring phone calls from bill collectors.
It is completely understandable that you want to isolate yourself. An unbelievable amount of shame, fear and guilt can wash over someone who is behind on payments or who is about to lose a home. It's not just you. Pre-foreclosures in metropolitan Phoenix topped 10,000 in March; a new record.
To prevent those becoming a wave of foreclosures, lenders are working with a lot more homeowners to fix or modify their loans. Last month, the number of foreclosures fell for the first time in a year and the number of foreclosures canceled by lenders rose.

That's good news. Here are 10 steps to try and save your home, suggested by Arizona Republic real estate reporter Catherine Reagor:

1. Don't wait. Call your lender immediately. New government-backed programs can help fix your loan so you can afford the payment.

2. Organize important papers. Locate such items as lender information, annual tax returns, paycheck stubs and monthly utility bills. Any organization providing help will ask for this information.

3. Click on http://www.makinghomeaffordable.com/. It's a federal Web site that determines if you can qualify for new programs, just by answering a few questions. Or, call 888-995-HOPE(4673).

4. Call 877-448-1211. It's the Arizona Foreclosure Prevention Hotline. It offers bilingual counselors.

5. Click on http://www.hud.gov/. That's a good way to find a counselor approved by the U.S. Department of Housing and Urban Development, or HUD. Click on the "foreclosure avoidance counseling" link and then choose Arizona.

6. Contact your lender again and again. The people who answer the phone for your lender are used to collecting on past debt. But the government is encouraging them to find a solution with struggling homeowners. Be nice to them. Don't get stressed and lose your temper. Have the names and dates of people you've spoken to previously. To be sure, this is a time-consuming, exhausting process, but it's benefiting an increasing number of homeowners. Lenders want to avoid getting stuck owning property.

7. Scan for scams. Mortgage fraud has risen 400 percent nationally. Housing advocates advise people not to pay big up-front fees to the growing number of groups offering help to struggling homeowners. Remember, HUD counselors provide help for free.

8. Slash your expenses. It'll show your lender you're serious about refinancing. Get a roommate to help meet your monthly mortgage payment. Cut up your credit cards. Have a garage sale. Check out how much you can save by cutting down on extras at http://www.finishrich.com/. Click the "learn" tab and then the "Latte Factor Calculator."

9. Consider a short sale. You won't make any money, but you won't have a foreclosure ding on your credit either. Lenders are being encouraged to consider more short sales. Or maybe you should consider filing for Chapter 13 bankruptcy, according to Bankrate.com. "Doing so temporarily halts the foreclosure process and can force the mortgage lender to accept a more borrower-friendly repayment plan, such as one that grants five years to repay the amount in arrears rather than one or two," according to the site.

10. Know when to fold 'em. Not everyone is going to be able save their home and not everyone wants a bankruptcy on their record. Be mentally prepared to turn over the keys to your lender.

Yes, it's a heartbreaking time, but it can mean have far less stress in your life. This is a good time to make a fresh start, while learning valuable lessons for the future.

5 Things You Need to Know Before Buying Renters' Insurance

5 Things You Need to Know Before Buying Renters’ Insurance
By Mary Umberger

RISMEDIA, April 18, 2009-(MCT)-It is, unfortunately, an all-too-familiar news image: An apartment building smolders in the hours after a major fire. The traumatized residents have gone off to put their lives back in order. In all likelihood, they have lost most of their possessions.
Some of those tenants will find financial support for their losses through their renters’ insurance policies. However, a majority of renters probably don’t have coverage, either because they believe they can’t afford it or because they don’t even know such a thing exists, according to a 2007 survey by Apartments.com.

“The average renters’ insurance in the U.S. is about $200 annually,” according to Loretta Worters, a spokeswoman for the Insurance Information Institute, a trade group in New York. “A lot of people don’t think about purchasing it because they think their landlord is responsible, but in reality, it’s the tenant that’s responsible for their own belongings,” Worters said.
And the value of those belongings can add up, even in the households of many young adults just starting out on their own: Computers, stereos, plasma-screen televisions, etc., are part-and-parcel of many an urban lifestyle these days.

Insurers say beyond personal property, renters may need to consider another possession - protection from liability lawsuits in this litigious age.

Here are five things renters should know about insurance:

1. What’s the real cost? That $200 annual cost is a generalization, though it’s generally regarded as a reliable one. “It depends on where you live and how much property you’re insuring,” said Janet Patrick, a spokeswoman for the Illinois Insurance Association. “It also depends on the size of the deductible and other coverage.”
Patrick said a $250 deductible (an amount the insured party pays out-of-pocket before coverage kicks in on a claim) is probably most commonly found in the standard wording of renters’ policies. “But you should take the highest deductible you can afford, maybe a $500 one, because it’s going to lower your premium cost,” she said.

2. Two forms of coverage. Policies usually cover property in one of two ways, providing either the “actual cash value” or the “replacement value” of the household objects in paying out a claim.
Actual cash value policies pay what a possession is deemed to be worth at the time of the loss. In other words, if, your laptop cost you $800 a few years ago, its value would be less today, an amount the insurer would calculate in determining how much to pay you for the loss.
Replacement-cost coverage is just what it sounds like - it pays out the equivalent cost if you were to go out and get a similar laptop today. Such coverage, because of the higher payout, carries a higher premium.

3. Beyond property. Policies cover more than lost property. For example, they also provide payment for living expenses if you’re displaced from the unit for covered events, such as fires.
Another major area of coverage is liability. “If somebody comes into your apartment or rented home and trips on a rug, that’s still a liability issue,” Patrick said.
Generally, policies include up to $100,000 liability coverage, according to Worters. “However, experts recommend that you purchase at least $300,000 of protection,” she said.

4. Talking about catastrophes. The list of catastrophes and circumstances that are likely to be covered by renters’ insurance is a long one, ranging from “typical” events such as fire, vandalism or theft to things such as damage from frozen pipes or even riots. What often isn’t included is damage from flooding, and insurance experts suggest if you live in a flood-prone area, you’ll need separate coverage.

5. Other things affecting costs. There may be ways to keep your premium costs down. Or drive them up.
Some policies, for example, may give you a discount if your building has a security system - especially if you have it connected to a central station alarm. And then, there’s a lifestyle consideration that might make your coverage pricier - that is, having a dog. “Some companies are concerned because of the additional liability of certain dogs that are aggressive in nature,” Patrick said.
Additional dog-related insurance costs and whether you get coverage or not depend on the company, she said. “Some won’t write a policy if you have a certain type of dog; others will take a look at the risk and evaluate it differently.”

$8,000 Tax Credit Q&A's

As you all know, right now is a phenomenal time to buy a home. The best benefit out there is for the First-Time Home Buyer. Not only are home prices the most affordable we have seen in the past 13 years, the government is offering an $8000 tax incentive. Here is a quick Q & A to help understand some of the points on this incentive:

Q:
A:
How much is the credit?
The tax credit would be $8,000 or 10% of the purchase price, whichever is less.
Q:
A:
What type of purchase is eligible?
Similar to the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit included in the 2009 economic stimulus plan is available for the purchase of a principal residence by first-time homebuyers.
Q:
A:
Who qualifies for the first-time homebuyer credit?
According to the IRS, any taxpayer who has not owned a home during the 3 years prior to the date of purchase can qualify for the credit.
Q:
A:
And I really don't have to repay the credit?
No. This is a change from the previous $7,500 tax credit. However, if the home is sold within three years of purchase, the credit will be reversed.
Q:
A:
Are there income limitations on the tax credit?
The tax credit begins to phase out for individuals with adjusted gross income over $75,000 ($150,000 for joint filers).
EXAMPLE: If an individual has a tax liability of $4,000 and was a first time home buyer, they will, instead of paying $4,000 to the IRS, get $4,000 back.


Remember also that when purchasing a home through FHA that the minimum required down payment is only 3.5% and FHA will allow the seller to contribute up to 6% of the sale price for closing costs, pre-paids and impounds. So if the buyer is tight on cash 3.5% is much better than a regular conventional 10% down payment. FHA rates are still in the 5 percent range for a 30 year fixed!

As always, if you or any of your clients have questions regarding any loan programs I would be happy to sit down with you or feel free to give me a call at the number below or shoot me an email.

Thank you,

Jason


Jason T. Beckington
Sr. Mortgage Planner
State Financial Services
Phone: 480.444.2260
Facsimile: 866.854.8555
Email: jbeckington@LO4Hire.com
Web: www.LO4Hire.com

Promising Signs from Valley Housing Data 4/4/09

Promising signs from Valley housing data
In March, foreclosures fell, sales in some areas hit record highs
Apr. 4, 2009

For the first time in years, there's good news coming out of metropolitan Phoenix's housing market.

In March, home sales soared to levels not seen since 2005, foreclosures fell for the first time in a year and prices showed signs of leveling off in some areas.

The Valley's most affordable communities, including many edge neighborhoods, are leading the housing rebound. "The affordable end of the Valley's housing market could finally be at the bottom looking up," said Mike Orr, a real-estate agent and analyst who publishes the Cromford Report. "Homes priced for $150,000 or lower are selling fast and even getting multiple offers. My money is on home prices in many of those neighborhoods being slightly higher by June."

High-priced areas such as Paradise Valley and north Scottsdale aren't seeing the same increases in home sales, though, and are likely to experience more price declines, Orr said.
Valley pending home sales hit 7,550 in March, a 70 percent jump from a year earlier, according to the Cromford Report, which has partnered with the Information Market to track housing indicators by analyzing data from the Arizona Regional Multiple Listing Service and real-estate records. The data track mostly resales but include some new-home sales.
Pending home sales, more than 90 percent of which become final, are a leading indicator for the housing market and include only deals that have a signed contract and set price.

Several Valley cities, including Phoenix, Avondale, Glendale, Peoria, Surprise and Goodyear, posted record sales in March, even beating monthly sales figures from the housing boom of 2005-06.
All of the West Valley cities seeing record sales were battered by foreclosures last year. Those foreclosures pushed down home values.

Now investors, first-time home buyers and retirees are buying those foreclosed homes from lenders. About two-thirds of all Valley home sales are foreclosure properties being resold. All those sales are putting a serious dent in the foreclosure inventory.
"There aren't that many foreclosure homes on the market now," said Orr, who is in the process of buying a foreclosure home in Queen Creek for $94,000. "Many of those deals will soon be gone."

In Queen Creek, the number of foreclosure homes for sale has dropped to 79 at the end of March from 169 in February.
Foreclosure homes are selling nearly twice as fast as they did last fall, when lender-owned homes began to dominate the Valley's housing market. On average, it is taking 117 days for a foreclosure home to sell now, compared with 227 days in November.
The number of foreclosure homes on the market could continue to fall. There were 3,377 foreclosures in metro Phoenix during March, almost 2,000 less than in February. At the same time, foreclosure cancellations nearly doubled to 3,168 last month.

Preforeclosures hit a new high of 10,689 in March. However, Tom Ruff of the Information Market doesn't believe all those will turn into foreclosures. He cites as reasons the growing number of successful short sales in the Valley and the loan-modification programs available under the federal government's housing plan.
Short sales can drag down prices but not as much as foreclosures.

The average sales price per square foot of a Valley foreclosure home has held steady at $66 for the past three weeks. The Valley's overall average price per square foot fell in March to $83 from $89 in February. But Orr doesn't see that number going below $80 because of the recent increase in demand for houses and the shrinking inventory of foreclosure homes.

The Valley's median home price fell in March to $129,000 from $136,000 in February. Prices are a lagging indicator of deals made months ago, before President Barack Obama's housing-rescue plan was announced and before sales began to pick up.
Orr says home prices will continue to fall in Paradise Valley, where there are about 550 houses for sale and only about six are selling a month.
At the current sales rate, that's at least a seven-year inventory of houses on the market in Paradise Valley. In most other parts of the Valley, the inventory of homes for sale is less than a year.

If sales continue to climb in other metro Phoenix communities this month and in May, there's a good chance home prices in the Valley's most affordable communities could tick up in June.
"April will be the turning point for the housing market," Orr said. "People are beginning to perceive we are at the bottom, and there's no reason to wait to buy anymore."

How Will Foreclosure Effect Your Credit Score? 3/22/09

How Will Forclosure Effect Your Credit Score? 3/22/09

Looks like FICO has figured out that they may need to adjust their scoring guidelines. Could 650 be the new 850? How Will Foreclosure Effect Credit Scores? The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''

One of the country’s largest credit unions Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”Source: The New York Times, Ron Lieber (03/14/2009)

Who Qualifies for housing Plan? 2/17/09

Who qualifies for housing plan? Owners who 'played by rules'

The president's $75 billion housing plan will help as many as 9 million U.S. homeowners refinance their mortgages if they owe more than their home is worth or avoid foreclosure if their payments are climbing beyond their reach.

The Homeowner Affordability and Stability Plan will help more people than expected.
But there will be no assistance for speculators who bought multiple homes as investments, or for people who bought homes they couldn't afford and then tapped all their home equity.

"The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly," President Barack Obama said during his speech at Mesa's Dobson High School.
Before Obama's speech, top White House advisers also emphasized that the goal of the plan is to stabilize the housing market for all homeowners. Treasury Secretary Timothy Geithner; Sheila Bair, Federal Deposit Insurance Corp. chairwoman; and Shaun Donovan, Housing and Urban Development secretary, accompanied the president to the Valley to discuss the housing plan.
Details on exactly how it will work will be released on March 4.

Leveling out mortgages
A key element of the initiative will allow up to 5 million borrowers who owe more than their house is worth to refinance through Fannie Mae and Freddie Mac.
That provision will help tens of thousands of homeowners in the Valley, where home prices have fallen more than 45 percent.
"I have not lost my job, so I can pay my mortgage, but it (the home) is worth less than I owe," said Sharon Bonds of Surprise. "I'm not greedy. I'm not an investor. I just have my one home. This is going to help me."
Previously, homeowners who were underwater with their mortgages, owing more than their home is currently worth, couldn't refinance with the mortgage giants. Now many in Arizona can.
Homeowners who have mortgages of more than $500,000 are not likely to qualify for aid, as Fannie Mae and Freddie Mac will typically guarantee only loans for less than that amount in Arizona.

The housing plan will also assist as many as 4 million U.S. homeowners facing or already in foreclosure but who still own their homes.

Avoiding foreclosure
For this group, the federal government will provide matching funds to lenders to lower interest payments on loans. The plan requires that mortgage payments be no more than 31 percent of monthly incomes.
"We have never missed a payment," Marilyn Uhl said. She lives in Mesa with her husband, who is a mortgage broker making much less money because of the housing downturn. "We are trying to make our house payments on my public-school teacher salary. Honestly we need help," she said.

Foreclosures push down overall home values. A new White House statistic shows every foreclosure in a neighborhood can reduce home values in that area by 9 percent.
"All Americans have a stake in making this work, not just those Americans who were the victim of bad underwriting standards or in communities where you've seen foreclosures," Geithner said.
The government wants to entice lenders to work with more homeowners before they go into foreclosure.
Lenders can earn $500 for each modified loan that enables a borrower to afford the payment and avoid foreclosure.
Borrowers, who stay current on modified mortgage payments, can get up to a $5,000 reduction in the principal they owe.
Donovan said government estimates show another 6 million U.S. homeowners will go into foreclosure during the next few years without this plan. Last year, 2.2 million houses were foreclosed on nationwide.

Not everyone will get help
People who own a home but do not live in that home will not be eligible for relief, including individuals and speculators who bought multiple homes as investments.
Also, people who have too much debt and can't afford a mortgage payment even with significant rate cuts won't be eligible for the loan modifications.
"This plan will not save every home," Obama said.
"It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans."

New Economic Stimulus Plan 2/17/09

Economic Stimulus Plan Benefits the Housing and Mortgage Industries

Revised February 17, 2009

Just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.

Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan.

Here is what we know as of today...
Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.