Let's Talk Real Estate

As a real estate broker, I have a lot of people approach me with questions regarding how the Homeowner Affordability and Stability Plan impacts their specific situation. Below you will find Q&A from President Obama's blog. You may find this helpful when trying to determine what options are available for you. Borrowers Who Are Current on Their Mortgage Are Asking: What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value? Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities. I owe more than my

The $790 billion stimulus package hammered out by House and Senate conferees late yesterday afternoon drops the repayment feature on the home buyer tax credit. This is great news since the repayment requirement was a discouraging some buyers from taking advantage of the tax credit. The legislation also extends the effective date of the tax credit, which is for up to $7,500, to September 1 (from June 30). Buyers that purchase a home in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well. Hopefully the combination of changes will encourage more buyers to "get moving". Other provisions reportedly in the bill that could help housing markets and communities include: FHA and conforming loan limits - Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be a

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, many believe that we could be on the brink of a substantial turn around in the real estate market. Now we need to make sure that our legislators support this stimulus. It is critical that we all join together and deliver a powerful message. Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences. Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence. If these two provisions sur