SW Minneapolis Real Estate

Realty Times - Avoiding Mortgage Scams

2010-10-05T10:16:00.000-05:00

Realty Times - Home Maintenance for First-Timers

2010-09-29T21:29:00.000-05:00

Realty Times - Home Maintenance for First-Timers

Realty Times - Tools for New Homeowners

2010-09-29T20:52:00.000-05:00

Realty Times - Tools for New Homeowners

Tools for New Homeowners
by Carla Hill

Living in a condo or a rental unit comes with one definite perk. You don't have to make your own repairs!

Now that you have moved into your new home, it's time to put on a new hat, that of "handyman." For the big jobs, like roofing and rewiring, you'll more than likely still rely on a professional. And unless you are truly versed in those specialties, that is what we'd recommend!

But there will be many small jobs that come up which you will be able to fix on your own. Really! Not only will it save you money, but you'll experience a nice swelling of pride that you made whatever it was, work again. To complete those jobs, you'll need tools.

So, what tools will you need as a new homeowner? Here is a list of suggestions from our experts:

1.A toolbox. There is nothing more tiring than having to search for the tool you need. Is the screwdriver in that box under the sink or in the garage? Where do we keep the extra screws? Keep everything together and you'll never waste time hunting for the right tool.

2.Hammer. It seems basic enough, and it is. If for nothing else, you'll need it to hang all your artwork and pictures.

3.Level. From hanging pictures to framing a garage, a level is a must for any handyman.

4.Screw Driver. You'll need more than one! Be sure you have multiple sizes of both phillips-head and flat-blades.

5.Plyers. Have you ever tried to disconnect a fitting on a pipe? You need plyers.

6.Hand Saw. Many handymen prefer power tools, but for those remote spots with no electrical access, you can always count on a hand saw.

7.Tape Measure. How long does that new counter-top need to be? Do we have room for the couch to fit through the front door? Exactly. Use a tape measure.

8.Wire cutters. For what else? To cut wires!

9.Cordless, Reversible Drill and Bits. It's perfect for the ladies that need a little extra oomph to finish a project.

10.Utility Knife. This is great for cutting exact edges.

11.Vice/clamps. Connect a vice to your workbench and use it to stabilize items you are cutting.
This is just a starter kit. There is a tool for practically every need, so over time, your tool box will grow considerably!

Rely on the tool experts at your local home improvement stores, as well. They have been trained to help you find your way. If you are unsure what exact tool you need or how to use it, don't be afraid to ask.

Becoming your own handyman is a learning process, so don't be too hard on yourself. There will be a lot of trial and error. That's half the fun. Enjoy your new home!

Published: September 29, 2010

Use of this article without permission is a violation of federal copyright laws.

REALTOR® Magazine-Daily News-Fannie and Freddie Offering Hard-to-Beat Deals

2010-09-29T20:41:00.000-05:00

REALTOR® Magazine-Daily News-Fannie and Freddie Offering Hard-to-Beat Deals

Beginning this week, Fannie Mae and Freddie Mac are trying to sell off 150,000 foreclosed homes by offering low down payments, no requirement for mortgage insurance, and up to $30,000 added to the mortgage for renovations. In addition, the real estate practitioner selling the property gets a $1,500 bonus.

In some neighborhoods, these properties undercut the average listing by $100,000.

Fannie and Freddie already have repaired the biggest problems with the property including roofs, plumbing, and electrical work.

Buyers who plan to live in the properties get a 15-day chance to view the homes before investors can purchase them. Investors with cash will likely snap up any properties remaining at the end of the grace period.

“Our goal is to recover as much as we can to offset our loss and not to be low balling properties just to move them,” says a Freddie Mac spokesperson. “We absolutely have no motivation to be leading a downward spiral in home prices."

Source: Smart Money, Anna Maria Andriotis (09/28/2010)

Note: This market is a buyer's and/or Investor's paradise - seize the opportunity and buy low in order to sell high later.

REALTOR® Magazine-Daily News-5 Reasons Homeownership Trumps Renting

2010-08-30T13:27:00.000-05:00

REALTOR® Magazine-Daily News-5 Reasons Homeownership Trumps Renting

iPad 3G Giveaway Contest

2010-08-30T12:54:00.001-05:00

" I read a great ipad accessories review at iPadAccessoriesOnlineStore.com"

For Sale: 3BR/1+2BA Single Family House in Minneapolis, MN, $475,000

2010-08-27T15:21:00.000-05:00

For Sale: 3BR/1+2BA Single Family House in Minneapolis, MN, $475,000

10 States with Pricey Closing Costs

2010-08-16T15:09:00.000-05:00

10 States with Pricey Closing Costs
Closing costs have risen an average of 36.6 percent compared to 2009, according to Bankrate.com’s annual survey.

The big increased was caused by the U.S. government requiring lenders to provide accurate good faith estimates of closing costs. Previously, lenders weren’t penalized for a bad estimate.

On average, the origination and third party fees on a $200,000 purchase mortgage added up to $3,741.

Here are the 10 highest states:

1. New York, $5,623
2. Texas, $4,708
3. Utah, $4,605
4. California-San Francisco, $4,566; California-Los Angeles, $4,406
5. Alaska, $4,327
6. Oklahoma, $4,254
7. Pennsylvania, $4,236
8. New Jersey, $4,110
9. Idaho, $4,077
10. Massachusetts, $4,025

Source: Bankrate.com (08/16/2010)

For Sale: 3BR/2BA Single Family House in Minneapolis, MN, $460,000

2010-08-05T16:55:00.000-05:00

For Sale: 3BR/2BA Single Family House in Minneapolis, MN, $460,000

2010-08-05T16:54:00.000-05:00

Jackie Funk | Coldwell Banker Burnet | jefunk@cbburnet.com | (612) 821-7183

3636 Edmund Boulevard, Minneapolis, MN

OPEN HOUSE: SUNDAY, AUGUST 8, 2010 FROM 1:00 - 3:00 P.M. Don't miss the opportunity to own this great home in a terrific neighborhood!

3BR/2BA Single Family House

offered at $460,000

Year Built	1931
Sq Footage	2,323
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	3
Parking	2 Car garage
Lot Size	7,405 sqft
HOA/Maint	$0 per month

DESCRIPTION

Sharp, all-brick expanded bungalow overlooking West River Road. Lovely woodwork & built-ins; hardwood floors; fireplace; new vintage kitchen; dramatic, spa-like Master Suite + spacious, LL family room.

Step out your door & revel in the ever-changing Theatre of Seasons!

see additional photos below

PROPERTY FEATURES

- Fireplace	- High/Vaulted ceiling	- Hardwood floor
- Family room	- Living room	- Bonus/Rec room
- Office/Den	- Dining room	- Breakfast nook
- Dishwasher	- Refrigerator	- Stove/Oven
- Microwave	- Stainless steel appliances	- Basement
- Washer	- Dryer	- Laundry area - inside
- Yard

OTHER SPECIAL FEATURES

- West River Parkway - Mississippi

- Minnehaha Academy

- St. Paul Academy

ADDITIONAL PHOTOS

Front View	Living Room
Dining Room	Backyard

Contact info:

Jackie Funk

Coldwell Banker Burnet

jefunk@cbburnet.com

(612) 821-7183

For sale by agent/broker

Equal Opportunity Housing

Posted: Aug 5, 2010, 1:25pm PDT

For Sale: 2BR/1BA Single Family House in St. Paul, MN, $284,900

2010-07-07T13:49:00.000-05:00

For Sale: 2BR/1BA Single Family House in St. Paul, MN, $284,900

Housing Market Isn't What it Used to Be

2010-06-10T10:12:00.000-05:00

Realty Times - Housing Market Isn't What it Used to Be

Transform Your Home with Home Staging

2010-06-04T15:01:00.000-05:00

http://realtytimes.com/rtpages/20100604_staging.htm

For Sale: 3BR/2BA Single Family House inLinden Hills - Minneapolis, MN, $410,000

2010-06-04T11:35:00.000-05:00

For Sale: 3BR/2BA Single Family House in Minneapolis, MN, $410,000

Tips for Great Yards

2010-06-03T10:07:00.000-05:00

Realty Times - Tips for Great Yards

Daily Developments: Twin Cities Residential Permits Continue to Rise

2010-06-01T13:50:00.000-05:00

Daily Developments: Twin Cities Residential Permits Continue to Rise

REALTOR® Magazine-Daily News-April Homes Sales Spike 14.8%

2010-05-27T11:50:00.000-05:00

April Homes Sales Spike 14.8%
Sales of new homes jumped in April, climbing 14.8 percent to a seasonally adjusted rate of 504,000 last month, up from 439,000 in March, the U.S. Commerce Department reported Wednesday.

Sales were up 47.8 percent over the same period a year ago.

The surge was driven by the home buyer tax credit, which expired April 30. "We got two solid increases in March and April," says Mark Vitner, senior economist at Wells Fargo. "We may see sales fall to a record low in the aftermath of the tax credit program, but any fallback should be short-lived."

The government estimates that there were 211,000 new homes on the market at the end of April, a five-month inventory.

Source: CNNMoney.com, Hibah Yousuf (05/26/2010)

For Sale: 4BR/3BA Single Family House in Minneapolis, MN, $965,000

2010-05-20T18:18:00.000-05:00

For Sale: 4BR/3BA Single Family House in Minneapolis, MN, $965,000

REALTOR® Magazine-Daily News-Top 10 Places for New Grads to Live and Work

2010-05-06T18:17:00.000-05:00

Top 10 Places for New Grads to Live and Work
Apartments.com and CareerRookie.com, CareerBuilder’s college job search site, have identified the 10 best cities for recent college graduates to both find a job and an affordable apartment.

The list was compiled by identifying the top U.S. cities with the highest concentration of young adults, the largest inventory of jobs requiring less than one year of experience, and the most apartments affordable on a median new graduate’s salary.

Here’s the list of selected cities and the cost of renting a one-bedroom apartment.

1. Atlanta, $723
2. Phoenix, $669
3. Denver, $779
4. Dallas, $740
5. Boston, $1,275
6. Philadelphia, $938
7. New York, $1,366
8. Cincinnati, $613
9. Baltimore, $1,041
10. Los Angeles, $1,319

First-Time Home Buyer Tax Credit Extended For Armed Service Members

2010-05-04T14:06:00.000-05:00

First-Time Home Buyer Tax Credit Extended For Armed Service Members
by Carla L. Davis
The expiration date of the $8,000 first-time home buyer may have already passed for most, but there are some potential homebuyers who can still take advantage of this great opportunity.

For those who are qualified service members, you have an extra year to cash in on the credit. Your new deadline is April 30, 2011. The government defines "qualified service member" as a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community."

The reasoning behind this extension is simple. National Association of Home Builders Chairman, Bob Jones, says, "Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas. It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country."

There has been another modification to the credit for members of the armed service. Currently, a buyer must repay the credit if they move out of their new home within three years. This particular contingency has been waived if the move is due to government ordered extended duty service.

Buyers must meet the other qualification for the credit, however, including the income limits. These limits are set at $125,000 for single taxpayers and $225,000 for married taxpayers filing joint returns.

You must be a first-time home buyer, which is defined as "a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse."

If you don't fit under this definition, then be sure to check into the $6,500 repeat buyer tax credit.

To get the first-time home buyers credit, you will need to claim it on your federal income tax return. There is a specific form (IRS Form 5405) that helps you determine how much the credit will be. Be sure to talk to your tax professional about the credit to ensure it is submitted correctly.

For those interested in the credit, you can visit FederalHousingTaxCredit.com to find out more information.

Published: May 4, 2010

The Renovation, Repair and Painting Rule

2010-04-13T10:00:00.001-05:00

The Renovation, Repair and Painting Rule

What's New
The RRP Course
This course was developed by the U.S. EPA, in collaboration with the U.S. Department of Housing and Urban Development (HUD) to train renovation, repair, and painting contractors how to work safely in housing with lead-based paint and comply with EPA's Renovation, Repair, and Painting (RRP) Rule, and HUD's Lead Safe Housing Rule. Below are links for the initial renovator model training course materials. This course should be used for individuals needing EPA certification as renovators. Visit EPA's "Model Renovator Training Course" website for course materials.

Helpful Tools
Are you a Renovator?
Find HUD-approved Lead Safe Work Practices Training Curricula
How to comply with the LSHR and the RRP
Frequently Asked Questions from OHHLHC Grantees
Lead-hazard information for renovation, repair and painting activities in the EPA lead hazard information pamphlet Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF)
En Español (PDF)

Lead-safe work practices for contractors in the EPA pamphlet Contractors: Lead Safety During Renovation (PDF) color, in English
En Español (PDF)
HTML version
Other formats

How to comply with EPA's rule in the: EPA Small Entity Compliance Guide to Renovate Right (PDF)
En Español (PDF)

Find additional EPA publications and brochures on lead-safe renovation, repair and painting and on lead poisoning prevention.
U.S.EPA/HUD Lead Safety for Renovation, Repair and Painting (RRP) Train-the-Trainer Program Presentation

Additional Information is available on EPA's RRP Website for States and Tribes | Property Owners of Rental Housing, Child-Occupied Facilities | Homeowners Working at Home | Tenants and Families of Children Under Age 6 in Child Care Facilities and Schools | Contractors Fee Rule Information for Training Providers | Lead Test Kit Vendors Related Notices, Final and Proposed Rules | EPA's Lead Renovation, Repair and Painting Program Rule

Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children.

On April 22, 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. Until that time, HUD and EPA recommend that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices.

There are some differences between the EPA RRP Rule and the HUD Lead Safe Housing Rule (LSHR). A major difference is that the LSHR requires clearance examinations. All housing receiving federal assistance must still comply with the LSHR. OHHLHC provides Information on complying with the LSHR and RRP, and Frequently-asked Questions from Grantees. Additional information for renovators is available.

All contractors should follow these three simple procedures:

Contain the work area.
Minimize dust.
Clean up thoroughly.
From December 2008, the rule has required that contractors performing renovation, repair and painting projects that disturb lead-based paint provide to owners and occupants of child care facilities and to parents and guardians of children under age six that attend child care facilities built prior to 1978 the lead hazard information pamphlet Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF) | en español (PDF)

Starting on April 22, 2010, the rule will affect paid renovators who work in pre-1978 housing and child-occupied facilities, including:

Renovation contractors
Maintenance workers in multi-family housing
Painters and other specialty trades.
Under the rule, child-occupied facilities are defined as residential, public or commercial buildings where children under age six are present on a regular basis. The requirements apply to renovation, repair or painting activities. The rule does not apply to minor maintenance or repair activities where less than six square feet of lead-based paint is disturbed in a room or where less then 20 square feet of lead-based paint is disturbed on the exterior. Window replacement is not minor maintenance or repair.
Read EPA's Lead Renovation, Repair and Painting Program Rule.

Additional information on becoming an EPA-certified renovator or training provider is available on EPA's Renovator and Trainer Tool Box site.

Effective Dates of the Rule
June 23, 2008 Unaccredited renovator or dust sampling technician training programs may not advertise or provide training leading to EPA certification

States, Tribes, and Territories may begin to apply for authorization

Persons performing renovations for compensation in pre-1978 child-occupied facilities (e.g., child care facilities, kindergarten and pre-kindergarten classrooms) must provide either Protect Your Family or Renovate Right to the owners and occupants before beginning renovations

Modifications/exemptions to Pre-renovation Education Rule take effect:

(1) Minor repair and maintenance exception changes to < 6 ft2 per room for interiors, 20 ft2 for exteriors. To qualify, the project cannot involve the use of high dust generating (“prohibited”) practices or window replacement.
(2) Emergency renovations specifically include interim controls performed in response to an elevated blood lead level in a child.
(3) Persons performing renovations for compensation in pre-1978 housing may use either Protect Your Family or Renovate Right to comply with the existing requirement to provide a lead hazard information pamphlet to the owners and occupants of target (pre-1978) housing before beginning renovations

December 22, 2008 Persons performing renovations for compensation in target (pre-1978) housing or child-occupied facilities must provide Renovate Right to the owners and occupants before beginning renovations
April 22, 2009 Training providers may begin applying to EPA for accreditation to provide renovator or dust sampling technician training

Persons seeking certification as renovators or dust sampling technicians may take accredited training as soon as it is available

October 22, 2009 Firms may begin applying to EPA for certification to conduct renovations
April 22, 2010 Renovations in target (pre-1978) housing and child-occupied facilities must be conducted by certified renovation firms, using renovators with accredited training, and following the work practice requirements of the rule

Realty Times - Top 10 Home Buying Mistakes

2010-04-08T11:22:00.000-05:00

Top 10 Home Buying Mistakes
by Broderick Perkins
Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete

Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make.

In order to avoid titanic trip ups during such a trying transaction, RealEstate.com suggests buyers get to know the most common home buying blunders.

To know them is to avoid them.

Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search.

Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget.

Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.

Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.

Making an unconditional offer Protect yourself with these contingencies:

• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

Published: April 8, 2010

Realty Times - Only in America

2010-03-30T10:19:00.000-05:00

Realty Times - Only in America

Just Say No to Bidding Wars

2010-03-30T10:13:00.000-05:00

Just Say No to Bidding Wars
by Jim Adair
Real estate sales are still booming in urban areas across Canada, as buyers get into the market before mortgage interest rates go up. With rates still hovering at near historic lows, it's a great time to buy. However, it is also creating bidding wars for homes in neighbourhoods across the country, driving prices up and leaving would-be buyers angry and frustrated after they are unable to get the home they want.

Losing a house you had your heart on buying is emotionally draining and it can also be costly if you've spent money on a home inspection and gone to the trouble of getting a certified cheque for the deposit. A recent survey by pollster Harris/Decima, conducted for BMO Financial Group, found that 15 per cent of homebuyers have been in bidding wars, and of those who didn't get the home, 14 per cent say it caused them to overspend on their next offer.

Some bidding wars happen because a particular house strikes the fancy of a number of buyers who love a specific neighbourhood or feature of the home. But encouraging multiple offers on a home is also a marketing tactic used by some real estate agents, who under-price the home and state they will not accept any offers until a specified time. The goal is to get a number of offers simultaneously and take the best one.

In many cases, unsuspecting buyers get excited about buying a home that seems to be in their price range, when it's likely to sell for much more than they can afford. Once buyers discover they have competition for the house, they may already have an emotional and financial investment in the house (if they've paid for a home inspection) and it prompts them to push up their bids. In Toronto, some would-be buyers reportedly sent the sellers photos of themselves and their children, along with flowers and candies, in an effort to boost their offer. This is all great news for the seller, right?

Maybe not. Some agents say that multiple offers don't necessarily net a higher price than if the home had been put on the market at its fair market value in the first place. Often many of the bidders can't afford the home and are only involved because the house was priced so low in the first place.

Others argue that the under-pricing strategy is sleazy and unethical, because the seller has no intention of accepting an offer at the listed price. But real estate agents defend the practice as a way to get the best price for their client, which is their contracted duty. Sellers have the right to list their property for whatever price they wish.

Some of the under-pricing policies are extreme, including listing homes for sale for $1 and waiting for offers. A couple of years ago there was also a controversy in Toronto when an agent complained that "phantom offers" were being invented by agents to make it seem like there was competition for a home when none existed. A Toronto Real Estate Board task force investigated the claims and determined that provincial law had provisions in place to prosecute any agent who was found guilty of this activity.

So if you're shopping for a home and have fallen in love with that impossibly cheap home in a great neighbourhood, how do you know if you should place an offer?

First of all, remember the old adage that if it sounds too good to be true, it probably is. Educate yourself about value of homes in the community by looking at the sale price of comparable homes or finding out from your real estate agent what other homes sold for recently. If it's clear that the house is being underpriced to create multiple offers, you have a choice to make. You can play the game or walk away.

There's a lot to be said for refusing to participate in bidding wars. Normally when you are thinking about buying a home, there's time to look at the place carefully, come back a few times to make sure it's what you're after, compare it to other homes that are on the market, and have a home inspection done on the property. In a bidding war, you may not have time to do any of this. If you are bidding against others, you likely will have to come in with a "clean" offer – meaning no conditions. If there isn't time to get a home inspection done before the offer deadline, you may have to buy without one. Your dream home may have all kinds of hidden problems.

It's also good to remember that bidding wars are not happening everywhere. They are generally confined to the most popular neighbourhoods or condo buildings. There are lots of other great properties available for sale, and although listings were in short supply early in 2010, they are now increasing every month. Look around and you might find something you like even better than this one.

What if you are absolutely sure this is the house of your dreams and you HAVE to have it?

First, before you even start looking, get a preapproved mortgage. Shop around among banks, mortgage brokers and financial institutions to get the best deal, and you'll know exactly how much you can afford to spend and when to say no. Your total housing costs including mortgage payments, property taxes and utility payments should be no more than one-third of your household income.

For the best shot at getting the house, make an offer over the asking price. The more offers that are coming in, the more you'll have to pay. In a bidding war you must make your best offer immediately because you may not get a second chance. Try to meet the homeowner in person at some point and get to know them a little – it can't hurt. Put as few conditions in the offer as possible. Use the closing date that the vendor is seeking. Come up with a hefty deposit, in the form of a certified cheque, to show the vendor you are serious.

In the end, if you don't get the house, just relax and let it go. Don't worry – you'll find another one!

Published: March 30, 2010

Use of this article without permission is a violation of federal copyright laws.

For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $559,900

2010-03-27T09:29:00.000-05:00

For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $559,900

First-Timer's Guide To Mortgage Shopping

2010-03-25T09:49:00.000-05:00

Realty Times - First-Timer's Guide To Mortgage Shopping

REALTOR® News-HUD Attorney Clarifies Add-on Fees

2010-03-24T09:40:00.000-05:00

HUD Attorney Clarifies Add-on Fees
Add-on fees have been a source of confusion since a U.S. District Court last year ruled that these fees violate federal law when the bill doesn’t detail specific services for which the fees are being billed.

Recently, Helen R. Kanovsky, general counsel for HUD, released some more detailed guidance about the court ruling. She wrote:

Commissions may be quoted “using a flat fee, a percentage of the sales price, or a combination” — all listed on the revised HUD-1 sheet. But Kanovsky said that if the total charges "exceed the amount of the commission for listing and selling the home that is reflected in the real estate broker's or agent's listing agreement," then HUD has the right "to determine whether additional services were provided" to justify the add-on.

If few or no services appear to have been performed, HUD can consider these charges a violation of the Real Estate Settlement Procedures Act. Such a violation is subject to significant penalties.

Kanovsky also warned against charging fees when there is no contract or other agreement that permits the levying of these charges. For instance, an administrative fee with no contractual language could be considered by HUD as an illegal fee.

Source: Washington Post Writers Group, Kenneth R. Harney (03/20/2010)

Foreclosure Inventory Is Increasing

2010-03-19T20:42:00.000-05:00

Foreclosure Inventory Is Increasing
The inventory of foreclosed homes that banks are sitting on is rising, threatening to push home prices down further in some parts of the country.

Analysts at Barclays Capital estimated that banks and mortgage investors held about 645,800 foreclosed homes in January, up 4.6 percent from December. That is down significantly from the peak of 845,000 in November 2008.

States with the largest number of foreclosures are Florida, Arizona, Nevada, California, and Michigan.

Source: The Wall Street Journal, James R. Hagerty (03/19/2010)

Analysts Say Rates Should Remain Low

2010-03-16T19:40:00.000-05:00

Analysts Say Rates Should Remain Low
Projections about where credit rates will go in the next year vary widely, but most mortgage analysts think the effect of the Federal Reserve’s move away from the market won’t be dramatic.

Analysts at Credit Suisse and FTN Financial Capital Markets predict that mortgage rates will stay between 5 percent and 5.25 percent for the rest of the year. Moody's Economy.com projects about 5.7 percent, and Barclays Capital says 6 percent.

“There is a lot of private money on the sidelines waiting to buy mortgage securities once the Fed stops gobbling most of them up,” says Laurie Goodman, senior managing director at mortgage-bond trader Amherst Securities Group.

Source: The Wall Street Journal, James R. Hagerty (03/13/2010)

Housing Experts Say Real Estate is Recovering

2010-03-15T19:50:00.000-05:00

Housing Experts Say Real Estate is Recovering
Some of the nation’s top economists believe the housing market has turned and better days are on the way for the housing industry.

Increases in jobs, credit, and affordable homes will overcome impediments such as rising interest rates, and the expiration of the Federal stimulus program to push the housing market toward recovery, says Dean Maki, chief U.S. economist for Barclays Capital.

“I would bet even odds that we’re at a bottom and that we’re going to see improvement in the coming months,” says Karl Case, co-creator of the S&P/Case-Shiller Home Price Index and a professor of economics at Wellesley College.

“The underlying trend is turning positive,” says Bruce Kasman, chief economist at JPMorgan Chase & Co.

Source: Bloomberg, Kathleen M. Howley and Rich Miller (03/15/2010)

FHA Head: Don't Raise Down Payments

2010-03-12T14:41:00.000-06:00

FHA Head: Don't Raise Down Payments
Now is not the time to raise the downpayment requirement on a Federal Housing Administration loan, warns FHA Commissioner David Stevens.

Stevens, testifying before a committee of the U.S. House, said his agency would probably insure 300,000 fewer home loans per year if the mandatory down payment was raised from 3.5 percent to 5 percent — a 40 percent increase.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the downpayment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.

The National Association of REALTORS® also opposes the proposal to raise the mandatory down payment for an FHA loan. The FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity.

“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”

Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.

McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.

Source: Associated Press, Alan Zibel, and NAR (03/11/2010)

Fewer Sellers Are Cutting Prices

2010-03-10T16:57:00.000-06:00

Fewer Sellers Are Cutting Prices
The prices on 19 percent of homes for sale as of March 1st have been reduced at least once, the lowest percentage in the last year, according to Trulia.com.

In October and November, when the market was feeling the effect of the tax credit, 26 percent of sellers cut their asking prices.

“Better pricing is leading to less time on the market, less price reduction, and in a lot of markets we're starting to see bidding wars on lower end properties," said Ken Shuman, spokesperson for Trulia.

Trulia calculates that these U.S. cities experienced the biggest decline in price reductions from Feb. 1, 2010 to March 1, 2010:

Charlotte, N.C.
Colorado Springs, Colo.
Houston
Raleigh, N.C.
Jacksonville, Fla.
Albuquerque, N.M.
Tucson
Omaha, Neb.
San Antonio, Texas

Source: Trulia.com (03/09/2010)

Sharing Spaces: Architecture Coach: REALTOR® Magazine

2010-03-08T13:18:00.002-06:00

Sharing Spaces: Designs That Set Boundaries

The right layout, flexibility, and agreed-on rules can bring family members of multiple generations, or even outsiders, together under one roof.
By Barbara Ballinger | April 2010

Shared living is on the rise, and for many reasons. In some cases, multiple-family generations come back together as boomerang kids return home due to job loss and financial hits. Some families decide to reside among several generations for familial or cultural tradition. Older parents may require greater care and companionship. Or, nonfamily might share space to defray mortgage payments and other expenses.

After all, a single-family home built for a nuclear family with a few children may not fit their needs, since they likely require spaces to share and ones that encourage privacy and a sense of independence.

The more a home can build in flexibility, the better, says Cynthia Cohen, president of Strategic Mindshare, a strategy consulting firm based in Miami. Then, the home can be adapted as the family's needs change.

Finding the Right Space
Chicagoans Susan Yount and husband Michael Pichowsky have mastered well the lessons of successful multiple-generation living. Three years ago the couple became concerned about Michel’s 90-something grandmother and 70-something mother living in a cramped one-bedroom apartment in Brooklyn, N.Y.

Because residing with relatives was part of both family cultures, the younger generation encouraged “the grandmas,” as they collectively call them, to move into a three-story, two-flat they had purchased and which Michael was remodeling.

The older women took the two-bedroom, two-bathroom garden apartment with separate kitchen and entrance, so they could maintain some independence. Meanwhile, the young couple and their now 3-year-old son Dirac settled into a three-bedroom, two-bathroom apartment upstairs, also giving them privacy, plus room to gather everyone together.

Builder Fernando Pages learned these lessons a much harder way. He used to design and build single-family, affordable houses in suburban Los Angeles, but he quickly discovered that many of the Mexican-American buyers who would move in would remodel the homes.

“I studied how they used them and recognized that many Americans may want open floor plans and large master suites, but other ethnic groups want bedrooms of a uniform size and to share bathrooms," says Pages. "Some also wanted outdoor kitchens long before they became a trend; they used their garages too.”

When he relocated to Omaha, Neb., he knew to understand his buyers’ cultural preferences from the get-go, and adapt the floorplans to fit his buyers' lifestyles.

Making the Space Work
No single model satisfies all needs. Iliana Abella, a real estate saleswoman with Greater Miami Investments Inc. in Coral Gables, Fla., receives several buyer requests for home options that build in flexibility. Some young couples seek homes with a cottage in back they can rent to subsidize their mortgage.

“They’re being much more responsible due to the economy,” she says.

Other buyers with bigger budgets favor the area’s larger, older Spanish-style homes with garage apartments, she says.

Creighton Gibson, president of a Home Instead Senior Care franchise in Statesville, N.C., which provides nonmedical in-home care for the older adults, was happy he was able to convert a space to fit his family's flexible needs. His wife's mother lives with them and resides in a spare bedroom. The couple was also able to convert an adjacent bedroom to a sitting room so she would have space to invite friends over to socialize.

Affordable Shared Options
Increased demand has generated affordable, green options too. The Center for Sustainable Development at the University of Texas in Austin has worked with city and community leaders to build green, infill “alley flats” in impoverished city neighborhoods.

“Most represent some sort of intergenerational housing with a separate kitchen, bathroom, living space, and shared garden area, all designed to allow those living together to retain their dignity,” says Barbara Wilson, assistant director. The Center is also working to develop a pattern book of designs that buyers can purchase.

Designer Marianne Cusato, who helped develop the compact, affordable Katrina Cottage after the 2005 hurricane along the Gulf Coast, has designed another small-scale house that offers the option of separate quarters.

Dubbed The New Economy Home, it measures 1,770 square feet, has four bedrooms, three and one-half bathrooms, and offers flexibility to age in place or adjust to economic changes. A first floor bedroom and bathroom have a separate entry to the outdoors and a closet can be fitted with a kitchenette to work for an adult child, older parent, or renter, says Cusato.

Setting Boundaries

While physical separation is essential, clearly defined, articulated rules are also keys to meet expectations and minimize inevitable conflicts that can arise from shared spaces—which can run the gamut from who’s not paying their share to who’s not pitching in enough, says Dr. Scott Haltzman, clinical assistant professor in psychiatry and human behavior at Brown University.

“It’s best if everyone discusses their core values together—what defines them and is most important, such as what makes them feel comfortable at home, rather than just focusing first on how many square feet they need,” says Haltzman.

LEARN MORE

Books from the following experts have more information on this topic:

•Marianne Cusato, Get Your House Right (Sterling, 2008)
•Dr. Scott Haltzman, The Secrets of Happy Families: Eight keys to building a lifetime of connection and contentment (Jossey-Bass, 2009)
•Fernando Pages, Affordable Remodeling (The Taunton Press, 2007)

Foreclosed Borrowers May Get Loans Again

2010-03-05T15:34:00.000-06:00

Foreclosed Borrowers May Get Loans Again
Will people who currently face foreclosure or short sales or who walk away from their underwater properties ever be able to get financing to buy another home down the road?

Banks haven’t been very forthcoming on this issue. However, knowledgeable observers of the situation say that while it may take some time, the situation will right itself for most people.

Because bankrupt borrowers have eliminated their debts, they should "constitute attractive fodder for mortgage lenders," says University of Michigan law professor John Pottow, whose specialty is bankruptcy.

As home prices and the mortgage market stabilize, lenders will be motivated to lend to people who previously had financial troubles if they look like they can pay the next time around, says Alan Riegler, a consultant with CCG Catalyst, which advises banks.

"The lender who figures out how to do more of this case-by-case stuff cost-effectively is going to end up ahead of the pack," Riegler says.

Source: Inman News, Matt Carter (03/05/2010)

REALTOR® Magazine-Daily News-Buyers Who Wait May Lose a Lot

2010-03-04T18:12:00.000-06:00

Buyers Who Wait May Lose a Lot
Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

REALTOR® Magazine-Daily News-Analysts See Rise in Apartment Construction

2010-03-04T17:38:00.000-06:00

Analysts See Rise in Apartment Construction
Developers of apartment buildings are getting back in the game, betting that the improving economy and limited new construction will provide an opportunity for success.

Multi-family housing starts in January rose 9.2 percent, according to the U.S. Commerce Department.

Investors are encouraged by the number of people between the ages of 20 and 34 — prime renting age — which is expected to grow by 5 million over the next decade, says Hessam Nadji, managing director of Marcus & Millichap.

Plus, building costs — including labor, lumber, and concrete — have all fallen over the last two years.

"Apartment REITs (real estate investment trusts) may generate the best property net-operating-income growth that they've seen in a very long time, maybe ever," says Haendel St. Juste, a REIT analyst with Keefe, Bruyette & Woods Inc.

Source: The Wall Street Journal, Dawn Wotapka (03/03/2010)

REALTOR® Magazine-Daily News-FDIC Considers Principal Reduction Program

2010-02-26T12:25:00.001-06:00

FDIC Considers Principal Reduction Program
The Federal Deposit Insurance Corp. is experimenting with a plan to help underwater home owners by reducing principal as long as they continue to pay their mortgages for an as-yet-undetermined period of time.

"We're thinking about it in terms of earned principal forgiveness. If you stay current on your mortgage, you would earn a principal reduction. It would only be for loans significantly underwater," says FDIC Chair Sheila C. Bair.

The initiative would be very limited in scope and would be launched later this year.

Lender Wells Fargo also has been carefully experimenting with principal reductions on a limited basis. "I do not believe that you can do a programmatic-wide or country-wide principal forgiveness [program]. You end up with many problems if you try to do this across the board," says Mike Heid, co-president of Wells Fargo Home Mortgage.

Source: Washington Post, Renae Merle (02/26/2010)

Daily Developments: Greater Minnesota Receives Housing Grants

2010-02-25T13:52:00.000-06:00

Greater Minnesota Receives Housing Grants
The grants, which will be distributed by DEED, will aid nine communities throughout the state.

The Minnesota Department of Employment and Economic Development (DEED) announced Tuesday that nine cities in Greater Minnesota will receive grants to aid infrastructure and housing improvements.

The funding, which totals more than $3.6 million, was provided through U.S. Department of Housing and Urban Development’s Small Cities Development Program.

The program funds infrastructure, housing, and commercial rehabilitation projects that benefit people of low to moderate incomes. Cities with populations under 50,000 and counties with populations under 200,000 are eligible to apply for the grants.

“This funding will create jobs and help improve Greater Minnesota communities,” DEED Commissioner Dan McElroy said in a statement. “The Small Cities Development Program is an important part of DEED’s strategy for strengthening the Minnesota economy.”

Grants were awarded to the following communities:

• Brandon: $600,000
• Doran: $210,000
• Bertha: $600,000
• Milan: $600,000
• Riverton: $127,500
• Belgrade: $417,400
• Elk River: $350,000
• Lismore: $501,000
• Owatonna: $250,000

—Jake Anderson

2009 Minneapolis Metro Residential Real Estate Activity Report

2010-02-24T14:56:00.003-06:00

The MplsRealtor annual publication is bursting with research and analysis for the Minneapolis–St. Paul metropolitan area housing market—clean charts, organized tables, quick analysis and easy-to-read maps.

This online version includes "Historical Average Sales Price by Area" along with the stronger metric "Historical Median Sales Price by Area." The "Average" tables won't be in the print edition.

A BIG thank you to everyone at the Minneapolis Area Association of REALTORS who contributed to this incredibly informational report. I am very pleased to be a member of such great association!

To view the report, please click on this link: http://www.mplsrealtor.com/downloads/market/RREAR/RREAR_2009.pdf

IRS Clarifies What's Needed to Claim Tax Credit

2010-02-22T12:34:00.000-06:00

IRS Clarifies What's Needed to Claim Tax Credit
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

Five Areas To Scrub to Make Yours Sparkle

2010-02-19T07:53:00.000-06:00

Clean Homes Show Better--Five Areas To Scrub to Make Yours Sparkle
by Phoebe Chongchua
So, here's a question for you. Would you rather walk into a clean home or a dirty one? No, it's not a trick question but it is an important one. You see, when it comes to selling a home, many people forget how important the answer to that question really is. Sellers get busy looking for their new home, preparing the kids for a move, packing up their belongings, getting organized for their new life and relocation so much that sometimes their home that's for sale doesn't get the TLC that's needed to push it to the top of the buyers' must-have list.

4 Demographic Trends That Will Affect Housing

2010-02-01T21:14:00.000-06:00

4 Demographic Trends That Will Affect Housing
A new report from the Urban Land Institute predicts two major changes in the U.S. housing market as we began a new decade.

Home appreciation will slow considerably to about 1 percent to 2 percent annually.
The current U.S. homeownership rate, now at 67 percent (which is down from a record high of 69 percent), will fall further to about 62 percent.

4 Major Demographic Trends

The report also cites four major U.S. demographic trends that will have a major impact on housing.

1. Aging baby boomers (ages 55 to 64 years old): They will keep working, and many will be forced to stay in their suburban homes until values recover. Those who are able to move will choose mixed-age living environments that cater to active lifestyles. Walkable suburban town centers also will appeal to this group.

2. Younger baby boomers (46 to 54 years old): They are now entering their prime earning years but they will lack home equity and unlike the older members of their generation, they won’t be able to purchase second homes. This will likely curb the prospects for the second-home market.

3. Generation Y: They are larger than the baby boom generation (with a population of about 86 million). As they enter the housing market, they are less interested in homeownership than their parents were when they were young adults. “They will be renters by necessity or choice for years ahead,” says John K. McIlwain, author of the report.

4. Immigrants – both legal and illegal: They are nearly 40 million strong. They often prefer multi-generational households and if they can afford them, larger homes in neighborhoods with a strong sense of community.

Source: The Urban Land Institute (01/27/2010)
REALTOR® Magazine-Daily News-4 Demographic Trends That Will Affect Housing

Living Smaller: House and Home Special Issue: Home & Design: REALTOR® Magazine

2010-01-28T15:55:00.000-06:00

Living Smaller: House and Home Special Issue: Home & Design: REALTOR® Magazine

Easy QuickBooks Inventory Optimization By Phitch

2010-01-27T21:40:00.000-06:00

Easy QuickBooks Inventory Optimization By Phitch

U.S. Department of Housing and Urban Development (HUD)

2010-01-26T17:24:00.000-06:00

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.
New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%
The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders
Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches
In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

U.S. Department of Housing and Urban Development (HUD)

U.S. Department of Housing and Urban Development (HUD)

2010-01-26T17:23:00.000-06:00

U.S. Department of Housing and Urban Development (HUD)

REALTOR® Magazine-Daily News-New Support for State Housing Agencies

2009-09-28T14:50:00.001-05:00

REALTOR® Magazine-Daily News-New Support for State Housing Agencies

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Solar Panel Prices Drop Dramatically

2009-09-09T13:07:00.001-05:00

Solar Panel Prices Drop Dramatically
Prices for solar panels are falling fast. Compared to a year ago, prices for panels and installed systems are about 25 percent less, retailers and installers say.
REALTORÃâÃÂ® Magazine-Daily News-Solar Panel Prices Drop Dramatically

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Short Sale, Foreclosure, or Deed in Lieu: Which is Best for the Borrower?

2009-09-08T10:29:00.003-05:00

Short Sale, Foreclosure, or Deed in Lieu: Which is Best for the Borrower?
by Bob Hunt

If only the President’s foreclosure-prevention plan worked as well as “cash for clunkers”. But it hasn’t. When the Administration announced the Making Homes Affordable plan in February of 2009, officials said they hoped it would help 4 million distressed homeowners to stay in their homes. As of this writing (8/2/09), the Administration has acknowledged that there are only 200,000 trial loan modifications under way.

Clearly, lenders have been reluctant to modify loans. (Moreover, there are good reasons for their reluctance according to a recent study by the Boston Federal Reserve.) Also, many borrowers have turned out to be ineligible for the programs or – because they are so far ‘under water’ – uninterested. Whatever the cause, the result is the same: a distressed borrower typically needs to choose between (1) a short sale (where the lender agrees to take less than the amount owed) in which, among other things, a commission (paid by the lender) is generated. (2) a foreclosure, or (3) a deed in lieu of foreclosure (where the borrower ‘gives back’ the property to the lender without a foreclosure proceeding). Which is better for the borrower?

Many real estate agents will say and advertise that a short sale is clearly preferable. In support of this view, two claims are usually asserted. (1) A short sale is less damaging to the borrower’s credit than a foreclosure. (2) A short sale provides the borrower with a shorter ‘waiting period’ until the borrower will be able to purchase a home again.

It is important to note that these are two different claims. For example, in a period of time a borrower could become eligible for a purchase loan under Fannie Mae/Freddie Mac guidelines, but he or she might still not have sufficient credit or income to qualify for the loan.

While many say that a short sale is less damaging to one’s credit than is a foreclosure, documenting that claim is another story. This writer has looked hard, but can’t find any verification from Fair Issac (the developer of the FICO scoring system) or any of the major credit providers. That is probably no surprise, because their systems are proprietary. Nonetheless, one wonders what might be the source of the claim.

On the other hand, people who apparently should know deny that there is any difference. Greta Guest of the Free Press (Freep.com) quotes John Ulzheimer, president of consumer education for Atlanta-based Credit.com. Ulzheimer spent seven years at Fair Issac. “The credit bureau sees those all as equal,” Ulzheimer said. “They are all essentially in the eyes of FICO a major delinquency.” Elizabeth Razzi wrote in the Washington Post (July 20, 2008), “A foreclosure and short sale inflict equal damage to your FICO score, according to Fair Issac…” though she provides no specific citation.

Moving on from the credit score issue, there is the question of being again eligible to buy. More precisely, it is a question of when, in the future, the defaulting borrower could get a loan that would be purchased by Fannie Mae or Freddie Mac. The issue is dealt with in Fannie Mae Announcement 08-16, released June 25, 2008.

When it comes to foreclosures and deeds in lieu of foreclosure, the policy distinguishes between events that were precipitated by extenuating circumstances (e.g. job loss, major illness) and those that were not (e.g. financial mismanagement). If you’ve had a foreclosure without extenuating circumstances, you can’t purchase with a Fannie Mae – backed loan for five years. However, if there were extenuating circumstances, it drops to three years. Suppose you chose the deed in lieu of foreclosure option. If there were no extenuating circumstances, the period would be four years, but with such circumstances, it drops to two. Fannie Mae doesn’t draw the distinction when it comes to short sales: the period is two years, the same as doing a deed in lieu with extenuating circumstances.

May 15, 2009, the Treasury Department issued an update to the Making Home Affordable plan. Among other things, it provides for financial incentives (e.g. a $1,500 moving allowance) to distressed borrowers who meet the general eligibility requirements for a loan modification and who will engage in an approved short sale or who will give a deed in lieu of foreclosure.

Distressed and underwater borrowers face a minefield of options for resolving their problems. Not the least of their problems is the vast amount of misinformation floating around. They need to step very carefully.

Read more here... http://tinyurl.com/maqlz6

IRS Is Scrutinizing Mortgage Deductions

2009-08-26T13:47:00.002-05:00

REALTORÃƒâ€šÃ‚Â® Magazine-Daily News-IRS Is Scrutinizing Mortgage Deductions

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Demand Grows for Affordable Senior Housing

2009-08-25T14:49:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-Demand Grows for Affordable Senior Housing

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What Has the Housing Crash Cost Americans?

2009-08-21T20:02:00.001-05:00

REALTORÃÂ® Magazine-Daily News-What Has the Housing Crash Cost Americans?

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Minneapolis Real Estate Market Update for July 2009

2009-08-20T15:59:00.002-05:00

http://tinyurl.com/nysg78

Message to Buyers: You Can Probably Afford It

2009-08-20T13:58:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-Message to Buyers: You Can Probably Afford It

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For Sale: 3BR/3.5BA Townhouse in Minneapolis, MN, $365,000

2009-08-19T10:37:00.001-05:00

For Sale: 3BR/3.5BA Townhouse in Minneapolis, MN, $365,000

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MN Ranks High in Stimulus Funding | Daily Developments | Twin Cities Business

2009-08-11T20:27:00.001-05:00

MN Ranks High in Stimulus Funding | Daily Developments | Twin Cities Business

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Daily News-FHA Drops Lender on Suspicion of Fraud

2009-08-05T13:20:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-FHA Drops Lender on Suspicion of Fraud

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REITs Face an Uphill Climb

2009-08-03T14:45:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-REIT Face an Uphill Climb

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Virtual Staging: Brilliant and Maybe Dangerous

2009-07-30T15:12:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-Virtual Staging: Brilliant and Maybe Dangerous

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REALTOR® Magazine-Daily News-Author: Don't Abandon Underwater Mortgages

2009-07-29T15:47:00.002-05:00

REALTORÃƒâ€šÃ‚Â® Magazine-Daily News-Author: Don't Abandon Underwater Mortgages

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REALTOR® Magazine-Daily News-Easy Ways to Improve Curb Appeal

2009-07-27T23:11:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Easy Ways to Improve Curb Appeal

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REALTORÂ® Magazine-Daily News-For Some, Renting Still Makes More Sense

2009-07-23T13:45:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-For Some, Renting Still Makes More Sense

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For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $357,900

2009-07-23T12:33:00.001-05:00

For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $357,900

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REALTORÂ® Magazine-Daily News-FHA Loans Set Record

2009-07-21T13:46:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-FHA Loans Set Record

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REALTORÂ® Magazine-Daily News-Housing Experts: Now Is a Perfect Time to Buy

2009-07-20T13:20:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-Housing Experts: Now Is a Perfect Time to Buy

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REALTORÂ® Magazine-Daily News-Report: New-Home Construction Increasing

2009-07-17T13:09:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-Report: New-Home Construction Increasing

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REALTORÂ® Magazine-Daily News-NAR: Housing Incentives Critical to Economy

2009-07-16T15:03:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-NAR: Housing Incentives Critical to Economy

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REALTORÂ® Magazine-Daily News-First-Time Buyers: Hurry for $8,000 Tax Credit

2009-07-15T15:19:00.001-05:00

REALTORÃâÃÂ® Magazine-Daily News-First-Time Buyers: Hurry for $8,000 Tax Credit

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Congratulations to Chanhassen, Chaska, Lino Lakes and Owatonna!

2009-07-13T11:13:00.002-05:00

REALTOR® Magazine-Daily News-Money Magazine Picks Best Places to Live

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To see full details visit: http://money.cnn.com/magazines/moneymag/bplive/2009/states/MN.html

REALTORÃÂ® Magazine-Daily News-Top 10 Cities With Most Price Reductions

2009-07-10T12:29:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Top 10 Cities With Most Price Reductions

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REALTORÃÂ® Magazine-Daily News-Congressman Proposes Home Plan to Save Jobless

2009-07-09T13:43:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Congressman Proposes Home Plan to Save Jobless

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REALTORÃÂ® Magazine-Daily News-Tips for Negotiating a Mortgage Deal

2009-07-08T10:50:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Tips for Negotiating a Mortgage Deal

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REALTORÃÂ® Magazine-Daily News-Canadians Seek U.S. Property Bargains

2009-06-30T12:51:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Canadians Seek U.S. Property Bargains

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REALTORÃ® Magazine-Daily News-Mortgage Applications Bounce Back

2009-06-26T12:47:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Mortgage Applications Bounce Back

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REALTORÂ® Magazine-Daily News-Best Cities for Finding Opportunity

2009-06-24T09:50:00.001-05:00

REALTORÃÂ® Magazine-Daily News-Best Cities for Finding Opportunity

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REALTORÂ® Magazine-Daily News-Green Housing Is in Demand, But Costly

2009-06-22T12:08:00.001-05:00

REALTORÂ® Magazine-Daily News-Green Housing Is in Demand, But Costly

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Knowing When Homeowners Should Abandon Ship

2009-06-22T10:05:00.000-05:00

Knowing When Homeowners Should Abandon Ship
by Ralph Roberts

Homeowners are beginning to wonder whether holding on to their homes is a mistake. Many have seen their property values drop 25 percent or more. Some experts claim that the housing market hasn't yet hit bottom. A few are even saying that we’re only halfway there. Read more: http://realtytimes.com/rtpages/20090622_abandon.htm

REALTORÂ® Magazine-Daily News-Fannie Mae Changes Job-Transfer Rules

2009-06-19T11:18:00.001-05:00

REALTORÂ® Magazine-Daily News-Fannie Mae Changes Job-Transfer Rules

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Mayo Clinic Signs Deal to Expand at MOA | Daily Developments | Twin Cities Business

2009-06-18T13:30:00.001-05:00

Mayo Clinic Signs Deal to Expand at MOA | Daily Developments | Twin Cities Business

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REALTORÂ® Magazine-Daily News-Strapped Condo Boards Initiating Foreclosures

2009-06-18T12:45:00.001-05:00

REALTORÂ® Magazine-Daily News-Strapped Condo Boards Initiating Foreclosures

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REALTORÂ® Magazine-Daily News-Consumer Agency Wants to Revamp Lending

2009-06-17T17:59:00.001-05:00

REALTORÂ® Magazine-Daily News-Consumer Agency Wants to Revamp Lending

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REALTORÂ® Magazine-Daily News-How to Woo First-Time Buyers

2009-06-16T15:42:00.001-05:00

REALTORÂ® Magazine-Daily News-How to Woo First-Time Buyers

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8725 Fremont Avenue South, Bloomington, MN | Powered by Postlets

2009-06-12T13:26:00.001-05:00

8725 Fremont Avenue South, Bloomington, MN | Powered by Postlets

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REALTORÂ® Magazine-Daily News-How to Find Cash in a Second Home

2009-06-09T18:16:00.001-05:00

REALTORÂ® Magazine-Daily News-How to Find Cash in a Second Home

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REALTORÂ® Magazine-Daily News-Former Countrywide CEO Charged With Fraud

2009-06-05T22:17:00.001-05:00

REALTORÂ® Magazine-Daily News-Former Countrywide CEO Charged With Fraud

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REALTORÂ® Magazine-Daily News-Former Countrywide CEO Charged With Fraud

2009-06-05T22:15:00.001-05:00

REALTORÂ® Magazine-Daily News-Former Countrywide CEO Charged With Fraud

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Minneapolis - An Art Lover's Dream!

2009-05-27T18:07:00.003-05:00

Minneapolis is truly a mini New York City! We have the arts, the restaurants, the culture, parks galore, lakes, and activities to meet just about everyone's desire. One of my favorites is the The Minneapolis Sculpture Garden which received national recognition on USA Weekend list of 10 top national travel destinations. Though the next door Walker Art Center has an admission charge, the 11-acre Sculpture Garden is free, and showcases 40 iconic and often whimsical works by Alexander Calder, Louise Nevelson, Richard Serra and Frank Gehry, and more, USA Weekend reports. This spring, shocked visitors found the cherry missing from Spoonbridge and Cherry but found out they were "not to worry"as it was just away for a new paint job. For information about this wonderful (now nationally recognized) site, use this link: www.minneapolisparks.org Contact info: 726 Vineland Pl. Minneapolis, MN 55403 612 230-6400, Hours: 6 a.m.-midnight Tip: Don't miss the Cowles Conservatory, on the edge of the park, open Tues-Sun 10-5 (also free) the the Walker next door (info at http://www.walkerart.org/.

Viva Minneapolis!

$8,000 Tax Credit Can Be Used for Down Payment

2009-05-13T21:58:00.003-05:00

I won't make a habit of copying news into my post, but I felt the news that first time home buyers (someone who has not owned a home for three years or more) can now use the $8,000 tax credit towards the down payment of their home purchase is too important and wanted to share with my readers the exact language.

I hope many of my readers, their family and/or friends will be able to take advantage of this very nice incentive!

Daily Real Estate News May 12, 2009 Share
Tax Credit Can Be Used for Down Payment

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit.

The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Source: NAR

SW Minneapolis Real Estate

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REALTOR® Magazine-Daily News-Fannie and Freddie Offering Hard-to-Beat Deals

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For Sale: 3BR/1+2BA Single Family House in Minneapolis, MN, $475,000

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For Sale: 3BR/2BA Single Family House in Minneapolis, MN, $460,000

For Sale: 3BR/2BA Single Family House in Minneapolis, MN, $460,000

For Sale: 2BR/1BA Single Family House in St. Paul, MN, $284,900

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For Sale: 3BR/2BA Single Family House inLinden Hills - Minneapolis, MN, $410,000

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Daily Developments: Twin Cities Residential Permits Continue to Rise

REALTOR® Magazine-Daily News-April Homes Sales Spike 14.8%

For Sale: 4BR/3BA Single Family House in Minneapolis, MN, $965,000

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First-Time Home Buyer Tax Credit Extended For Armed Service Members

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Just Say No to Bidding Wars

For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $559,900

First-Timer's Guide To Mortgage Shopping

REALTOR® News-HUD Attorney Clarifies Add-on Fees

Foreclosure Inventory Is Increasing

Analysts Say Rates Should Remain Low

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FHA Head: Don't Raise Down Payments

Fewer Sellers Are Cutting Prices

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Foreclosed Borrowers May Get Loans Again

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REALTOR® Magazine-Daily News-Analysts See Rise in Apartment Construction

REALTOR® Magazine-Daily News-FDIC Considers Principal Reduction Program

Daily Developments: Greater Minnesota Receives Housing Grants

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IRS Clarifies What's Needed to Claim Tax Credit

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REALTOR® Magazine-Daily News-New Support for State Housing Agencies

Solar Panel Prices Drop Dramatically

Short Sale, Foreclosure, or Deed in Lieu: Which is Best for the Borrower?

IRS Is Scrutinizing Mortgage Deductions

Demand Grows for Affordable Senior Housing

What Has the Housing Crash Cost Americans?

Minneapolis Real Estate Market Update for July 2009

Message to Buyers: You Can Probably Afford It

For Sale: 3BR/3.5BA Townhouse in Minneapolis, MN, $365,000

MN Ranks High in Stimulus Funding | Daily Developments | Twin Cities Business

Daily News-FHA Drops Lender on Suspicion of Fraud

REITs Face an Uphill Climb

Virtual Staging: Brilliant and Maybe Dangerous

REALTOR® Magazine-Daily News-Author: Don't Abandon Underwater Mortgages

REALTOR® Magazine-Daily News-Easy Ways to Improve Curb Appeal

REALTORÂ® Magazine-Daily News-For Some, Renting Still Makes More Sense

For Sale: 4BR/2BA Single Family House in Minneapolis, MN, $357,900

REALTORÂ® Magazine-Daily News-FHA Loans Set Record

REALTORÂ® Magazine-Daily News-Housing Experts: Now Is a Perfect Time to Buy

REALTORÂ® Magazine-Daily News-Report: New-Home Construction Increasing

REALTORÂ® Magazine-Daily News-NAR: Housing Incentives Critical to Economy

REALTORÂ® Magazine-Daily News-First-Time Buyers: Hurry for $8,000 Tax Credit

Congratulations to Chanhassen, Chaska, Lino Lakes and Owatonna!

REALTORÃÂ® Magazine-Daily News-Top 10 Cities With Most Price Reductions

REALTORÃÂ® Magazine-Daily News-Congressman Proposes Home Plan to Save Jobless

REALTORÃÂ® Magazine-Daily News-Tips for Negotiating a Mortgage Deal

REALTORÃÂ® Magazine-Daily News-Canadians Seek U.S. Property Bargains

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Knowing When Homeowners Should Abandon Ship

REALTORÂ® Magazine-Daily News-Fannie Mae Changes Job-Transfer Rules

Mayo Clinic Signs Deal to Expand at MOA | Daily Developments | Twin Cities Business

REALTORÃÂ® Magazine-Daily News-Top 10 Cities With Most Price Reductions

REALTORÃÂ® Magazine-Daily News-Congressman Proposes Home Plan to Save Jobless

REALTORÃÂ® Magazine-Daily News-Tips for Negotiating a Mortgage Deal

REALTORÃÂ® Magazine-Daily News-Canadians Seek U.S. Property Bargains

REALTORÃ® Magazine-Daily News-Mortgage Applications Bounce Back