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The U.S. Treasury plan to help homeowners avoid foreclosure potentially applies to 75 percent of the mortgages in the U.S., including those backed by Freddie Mac or Fannie Mae (those two organizations are currently devising guidelines). The plan, which provides incentives for lenders and homeowners for completing Short Sales, is many-faceted: It provides incentives to lenders and borrowers for completing Short Sales It streamlines and standardizes the documentation necessary for Short Sales It limits the ability of subordinate lien-holders to obstruct the Short Sales process It sets limits on the time it takes lenders to approve or reject Short Sales requests It steps up pressure on lenders to make permanent the 650,000 trial loan modifications they started earlier in 2009 Incentives to Borrowers Under the plan, borrowers who complete a Short Sale are released from all mortgage debt. Additionally, they receive $1,500 for moving expenses. Incentives for Lenders The plan provides for pay

The Pending Home Sales Index , a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5. Economists are saying that buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market. Since first-time buyers must finalize their purchase by November 30 to get the credit, increased activity is expected in the months ahead Geographic Breakdown: Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. South: The index slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008. There are numerous buyer a

New income limits for the USDA Guaranteed Rural Housing Program went into effect on April 20th. This includes an increase in the income limits nationwide, as well as the implementation of the new “2-Tier” income limit structure, which will simplify program requirements and the qualification process. Previously, income limits for many counties, including Cumberland & York Counties, depended on the number of persons. There was a different income level for each additional person. The new structure only has two income levels (1-4 persons and 5-8 persons). This increases the maximum income level for most families. Cumberland & York County: $73,600 for 1-4 person household $97,150 for 5-8 person household Portland Metro: $83,250 for 1-4 person household $109,900 for 5-8 person household This is great news for many buyers! Here is the link to look up the Rural Development income limits for your area.

The Department of the Treasury and the Department of Housing and Urban Development recently launched a new Web site for consumers seeking information about the Making Home Affordable loan modification and refinancing program. The site offers interactive self-assessment tools to help borrowers determine if they are eligible to participate and calculate the monthly mortgage payment reductions under the program. Go to: http://www.makinghomeaffordable.gov/ to check it out!

The Federal Reserve announced today that it would purchase an additional $750 billion in Fannie Mae and Freddie Mac mortgage-backed securities and up to $300 billion in longer term Treasury securities. This is great news for American home buyers and homeowners because mortgage interest rates will continue to remain at historic lows (and potentially drop even more). This should help improve many home buyer’s ability to purchase a home. Potentially homeowners facing challenges will be able to refinance into better terms. We are already experiencing a great improvement in housing affordability due to historically low interest rates, and the Fed’s move will push affordability conditions to the best levels in 40 years. In addition, continued low rates will lessen foreclosure pressure and help stabilize home prices sooner, as more American buy homes and draw down inventory.

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