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Provided By Realty Times

The National Association of Realtors has extended its successful “Operation Home Relief” campaign, which is designed to give military service families a voice by contributing financial counseling and aid to help keep them in their homes. Though launched just last month, the NAR has already matched $20,000 in donations.

The NAR has used this Facebook campaign to promote USA Cares, an organization dedicated to providing aid to help post-9/11 veterans and active-duty military personnel avoid foreclosure.

Through the consumer website, HouseLogic.com, a free comprehensive website about homeownership for homeowners, Operation Home Relief aims to increase awareness, rally support and raise funding that provides foreclosure assistance in the form of financial counseling and grants to post-9/11 active duty U.S. military service personnel, veterans and their families.”

“NAR believes that any family who loses a home to foreclosure is one family too many,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Foreclosures don’t just affect the families that lose their homes; a foreclosure lowers the value of every home in the surrounding neighborhood. That’s why we’re so pleased with America’s response to Operation Home Relief, and why we’re committing additional funds to support military families who need assistance.”

What financial hardships do service members face? The NAR reports:

•Reserves called to active service often find themselves earning far less money in the military than they did at their civilian jobs.

•Spouses often have to cut back on working hours to take care of children, since they have no one to share childcare duties with.

•Service members may find jobs gone when they return—the factory they worked for is now padlocked.

•Service members may have injuries that prevent them from returning to the same jobs they had, and various disability programs don’t make up the difference. Meanwhile, spouses have to take care of them, and

•Service members’ homes have lost significant value, making refinancing difficult.
Invite your friends (Operation Home Relief will donate $1 for every join until they reach their goal) by visiting apps.facebook.com.

Provided By Realty Times

The past few years of rocky real estate markets has left some people wondering, why buy a home? If you find that thought running through your mind consider these things.

A recent survey commissioned by the National Association of Home Builders found that 72 percent of its respondents opposed any effort to get rid of the homeowners’ mortgage interest deduction. That’s despite the fact that doing so could help ease the nation’s budget deficit.

Gil Gross host of Real Estate Today Radio reported that, “The survey cut across partisan lines, and even across homeowner status. 76 percent of Republicans and 64 percent of Democrats oppose eliminating the deduction, as do 75 percent of owners and even 55 percent of renters. They all recognize the importance of homeownership to the nation’s economy.”

But why when you hear the horror stories of markets crashing, housing underwater and homeowners facing foreclosure, would you want to buy a home?

The first reason, we just addressed. When you buy a home there are tax advantages. Effectively, homeownership provides an excellent tax shelter. But there are more reasons to trade your rent payment for a mortgage. Buying a home for this tax advantage isn’t how you should look at it. Rather, think of it this way. You need a place to live. Receiving a tax advantage for the place that you choose to live in, is a nice bonus.

When carefully used, a home equity loan (line of credit that allows you to borrow against your home) can be a better way to carry credit. That’s because home equity lines can have lower interest rates and are also deductible whereas typical credit card interest is not.

Owning your own home gives you more freedom and the opportunity to create a living environment exactly how you want it. There’s no consulting with landlords to see if you can do something to the home or who will pay for the change. Of course, that means when you buy a home you should consider what additional changes you plan to make, so that you can appropriately budget. Also, keep in mind that with homeownership come unexpected expenses for repairs and maintenance. While that may sound like a reason not to buy, it shouldn’t be. Think about owning a car. There are maintenance issues and expenses but most people still like to own their own vehicle.

Homeownership provides a sense of stability and security. Instead of wondering when the landlord might decide to sell the home, you are in control of that decision. Additionally, homeownership provides immeasurable values of belonging to a social community. Also, as a homeowner, you’ll have a greater influence on community affairs. Renters, being usually more transient, have less influence on policymakers.

What it comes down to is how long you plan on staying in a particular home and area and what you can afford. Owning your home weds you to a property which some people feel limits them. However, many others see a home as their life and the legacy they’ll leave behind… a place where they raise children, enjoy company, experience life’s ups and downs, and eventually pass on their home to loved ones.

Looking to purchase a new home? Give us a call at 972.772.7029 or email us at debbie@debbie-brown.com.

Provided By Yahoo!

WASHINGTON – President Barack Obama has rejected a bill that the White House fears could worsen the mounting problems caused by flawed or misleading documents used by banks in home foreclosures.

White House press secretary Robert Gibbs said Thursday that Obama is sending a newly passed bill back to Congress to be fixed because the current version has “unintended consequences on consumer protections.” The bill would loosen the process for providing a notary’s seal to documents and allow them to be done electronically.

Obama will not sign a bill that would allow foreclosure and other documents to be accepted among multiple states. Consumer advocates and state officials had argued the legislation would make it difficult for homeowners to challenge foreclosure documents prepared in other states.

The White House said Thursday it is sending the bill back to Congress for revisions, and that the administration would work with lawmakers on it.

O. Max Gardner, a consumer lawyer in Shelby, N.C., said the bill would have made the problems with foreclosure documents worse. That’s because mortgage companies would have been able to mass-produce documents and affix a digital version of a notary’s seal rather than one on paper.

“They could process more foreclosure cases with improper and invalid documents and make it more difficult for consumers to try to fight,” he said.

Obama used a rare “pocket veto” — a tactic for killing a bill that can be used only when Congress is not in session. It essentially takes effect when the president fails to sign a bill within 10 days. Obama has yet to issue a traditional veto during his presidency; he has used a pocket veto once before, in December 2009, to address what amounted to a technicality on a defense spending bill.

A furor has been growing as mounting evidence has surfaced that mortgage lenders have been evicting homeowners using flawed court papers. State and federal officials have been ramping up pressure on the mortgage industry over concerns about potential legal violations.

Texas Attorney General Greg Abbott has asked for a moratorium on home foreclosures in Texas.  Another 23 states have already haulted Foreclosures for 60 – 90 days until they can get a handle on the proper documentation needed to foreclose.  Texas is a non judicial state, different from the other states,  so the foreclosure process is not as legally complicated in Texas.  The attorney general?s office is asking lenders to respond by October 15, 2010.  Looks like a couple of the big lenders, Bank of America, JPMorgan Chase have voluntarily declared stays in foreclosures.  Analysts say a moratorium would only delay the foreclosures, those homeowners who aren?t able to keep up with the payments on their properties will have to do something, or they will still go to foreclosure.  
I see this as time for these homeowners to seek out their options, to either get their home listed for a short sale, and get it sold and settle the mortgage with the banks, or work out a loan resolution, if they qualify.
But do not wait too late.  People may have some breathing room, but don?t waste it and let the time slip by.  Take action and get that mortgage settled.

By Debbie Brown
Ph  972-772-7029   
OfficialShortSaleSite.com

Provided By Yahoo!

If you’re like many first-time homebuyers, chances are you’ve been spending your weekends driving around visiting open houses and new model homes. This is a great way to get a feel for what you want. The problem is that what you want isn’t always what you should get.

Before you start touring homes for sale, it’s important to start off with a budget so you know how much you can afford to spend. Knowing what mortgage payment you can handle will also help you narrow the field so you don’t waste precious time touring homes that are out of your reach.

Where to begin
The key factor in figuring how much home you can afford is your debt-to-income ratio. This is the figure lenders use to determine how much mortgage debt you can handle, and thus the maximum loan amount you will be offered. The ratio is based on how much personal debt you are carrying in relation to how much you earn, and it’s expressed as a percentage.

The ideal ratio
Mortgage lenders generally use a ratio of 36 percent as the guideline for how high your debt-to-income ratio should be. A ratio above 36 percent is seen as risky, and the lender will likely either deny the loan or charge a higher interest rate. Another good guideline is that no more than 28 percent of your gross monthly income goes to housing expenses.

Doing the math
First, figure out how much total debt you (and your spouse, if applicable) can carry with a 36 percent ratio. To do this, multiply your monthly gross income (your total income before taxes and other expenses such as health care) by .36. For example, if your gross income is $6,500:

$6,500 (Gross monthly income)
x .36 (Debt-to-income ratio)
= $2,340 (Total allowable monthly debt payments)

Next, add up all your family’s fixed monthly debt expenses, such as car payments, your minimum credit card payments, student loans and any other regular debt payments. (Include monthly child support, but not bills such as groceries or utilities.)

Minimum monthly credit card payments*: ____________
+ Monthly car loan payments: ____________
+ Other monthly debt payments: ____________
= Total monthly debt payments: ____________

*Your minimum credit card payment is not your total balance every month. It is your required minimum payment — usually between two and three percent of the outstanding balance.

To continue with the above example, let’s assume your total monthly debt payments come to $750. You would then subtract $750 from your total allowable monthly debt payments to calculate your maximum monthly mortgage payment:

$2,340 (Total allowable monthly debt payments)
- $750 (Total monthly debt payments other than mortgage)
= $1,590 (Maximum mortgage payment)

In this example, the most you could afford for a home would be $1,590 per month. And keep in mind that this number includes private mortgage insurance, homeowner’s insurance and property taxes. To determine the price of home you can afford based on this amount, use a home affordability calculator.

Exceptions to the 36 percent rule
In regions with higher home prices, it may be hard to stay within the 36 percent guideline. There are lenders that allow a debt-to-income ratio as high as 45 percent. In addition, some mortgage programs, such as Federal Housing Authority mortgages and Veterans Administration mortgages, allow a ratio higher than 36 percent. But keep in mind that a higher ratio may increase your interest rate, so you may be better off in the long run with a less expensive home. It’s also important to try to pay down as much debt as possible before you begin looking for a mortgage, as that can help lower your debt-to-income ratio.

Published By Ruth Mantell, MarketWatch

WASHINGTON (MarketWatch) — Children could be prevented from realizing their potential in school and, eventually, the labor force as consequences from the problem of home foreclosures last for years, a Federal Reserve official said Thursday.

“A foreclosure is likely to mean not only a loss of home, but also a disruption in where, or whether, kids are in school,” said Eric Rosengren, president of the Federal Reserve Bank of Boston, at a Fed conference in Washington about neighborhood stabilization. “Since foreclosure is often related to unemployment, marital stress, or physical ailments, the foreclosure is likely to make it difficult for even the most determined student to excel.”

Rosengren added that he is encouraging staff to look at how children are affected by foreclosures. Read more about the conference.

Foreclosures may be a symptom of “broader problems” having effects on neighborhoods, such as high rates of unemployment and property crime, Rosengren said. He noted that higher foreclosure rates could exacerbate such problems.

“My own view is that too little focus has been on community problems because the focus has been more targeted to housing and foreclosures,” Rosengren said.

Areas with high concentrations of real estate owned properties — properties held on the books of banks typically after failing to sell at foreclosure auctions — have also been associated with greater incidence of babies with low birth weight, higher high-school dropout rates and more frequent failures on statewide math tests.

States and the federal government may need to examine how to address the broader problems in these communities, Rosengren said, including “potentially looking at revenue sharing that provides a flexible way to address the fiscal gap faced by many of our hard-pressed communities.”

Also speaking Thursday at the neighborhood stabilization event, Sandra Pianalto, president of the Cleveland Fed, said “decades of progress” have been wiped away in the past few years in many low-income communities.

‘Collateral damage’

“The longer properties remain vacant, the more collateral damage is done to property values nearby, and it doesn’t take long for neighborhoods to suffer from increased crime, arson, and blight,” Pianalto said. “We are still far from a recovery in the housing markets in our region. The losses and hardship that our neighborhoods have experienced is staggering.”

The housing-market collapse resulted from “a destructive cycle that feeds on itself,” Pianalto said.

“In our region, mortgage delinquencies led to a high number of foreclosures, which led to an oversupply of housing, which led to home prices depreciating and borrowers and financial institutions taking on big losses,” Pianalto said. “To break this cycle, a coordinated set of policies is needed to target multiple points of the breakdown in the housing market.”

She said loan modifications alone won’t be enough to address the housing crisis, noting that the main reason that most borrowers cite for needing assistance is income loss due to the weak economy.

“We have learned that numerous interventions are required to address the multiple causes and consequences of the foreclosure crisis, and we will continue to focus our outreach and analysis on understanding and contributing to solutions in real time,” Pianalto said. “A healthy housing sector is critical both to the overall economy and to a sustainable economic recovery.”

Facing foreclosure? There are other options, to learn what you can do to avoid foreclosure call us at 972-772-7029 or email us at debbie@debbie-brown.com

One in 10 American households with a mortgage was at risk of foreclosure this summer as the government’s efforts to help have had little impact stemming the housing crisis.

About 9.9 percent of homeowners had missed at least one mortgage payment as of June 30, the Mortgage Bankers Association said Thursday.

That number, which is adjusted for seasonal factors, was down slightly from a record-high of more than 10 percent as of April 30.

In a worrisome sign, the number of homeowners starting to have problems with their mortgages rose after trending downward last year. The number of homes in the foreclosure process fell slightly, the first drop in four years.

More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year.

The number of Americans missing payments and falling into foreclosure has followed the upward trend in unemployment, which has been near double digits all year and has shown no sign of dropping soon.

“Ultimately the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story,” Jay Brinkmann, the trade group’s top economist, said in a statement. “Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers.”

There was some modestly encouraging news. The percentage of mortgage borrowers receiving foreclosure notices fell slightly to 4.57 percent in the April-to-June quarter. That’s down from 4.63 percent in the January-to-March period and the first drop in four years.

And the percentage of loans receiving their first notice of foreclosure also dipped. That fell to 1.1 percent in the second quarter from 1.2 percent in the first quarter.

Besides forcing people from their homes, foreclosures and distressed home sales have pushed down on home values and crippled the broader housing industry. They have made it difficult for homebuilders to compete with the depressed prices and discouraged potential sellers from putting their homes on the market.

Government efforts haven’t made much of a difference. Nearly half of the 1.3 million homeowners who have enrolled in the Obama administration’s main mortgage-relief program have been cut loose through July, the Treasury Department said last week. The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments.

Roughly 32 percent of those who started the program have received permanent loan modifications and are making their payments on time.

Provided By msnbc.com

It’s a trend that started decades ago. Even President Jimmy Carter, in his 1979 “Malaise” speech, warned of its effects if Americans continued on their path.

He said, “In a nation that was proud of hard work, strong families, close-knit communities, and our faith in God, too many of us now tend to worship self-indulgence and consumption. Human identity is no longer defined by what one does, but by what one owns.”

Yes, more than a handful of Americans are guilty of living beyond their means. The symptom of this fact was never more evident than during the recent onslaught of foreclosures during the recession.

Nowadays, the average American has 3.5 open credit cards, with an average household carrying credit card debt equaling $15,788 (Federal Reserve). And on that they pay an average of nearly 15 percent interest!

Just 20 years ago, comparative figures were practically inconsequential in comparison. The average family had just under $3,000 in credit card debt in 1990.

As a country as a whole we are inching towards the trillion dollar mark in credit card debt. Yes, trillion. The grand total as of March 2010 was $852.6 billion. Compare that to 1968 when consumer credit debt was $8 billion (in current dollars).

The current debt figures outlined above don’t even begin to reflect the amount of debts we hold in non-revolving debt, such as car loans, mortgages, and student loans. It’s a scary prospect for a nation that was once touted as the economic leader of the world. We are now a nation of debtors.

Is a change on the horizon for the United States? One positive that has come out of the recent recession is a slowly growing savings rate.

The New York Times reported on August 3, 2010, “A new government report released on Tuesday showed that consumers saved 6.4 percent of their after-tax income in June, and that this savings rate had shot up as high as 8.2 percent in May 2009. Before the recession, the rate had hovered at 1 to 2 percent for many years.”

It may take a while to repair the damage that has been done by rampant over-spending, however. The New York Times continued that “along with high unemployment, high debt levels continue to discourage consumer spending. American households, though borrowing less, still are paying for their free-spending ways in the credit bubble of the mid-2000s. Their debt levels are far higher than they were in the 1980s and 1990s, when they had less than a dollar of debt for every dollar in disposable income.”

Some economists fear that with a larger savings rate comes less consumer spending, something needed to reinvigorate an ailing economy. But in the long-run, a healthier savings rate may mean a stronger economic base for American households.

Financial experts give simple tips on how to start building your savings.

First, create a budget. Take a realistic look at your finances and develop a plan for making sure your monthly expenses do not exceed your income. This may take cutting out some extras that you have become accustomed to, but in reality can do without. If you can’t afford to pay for an item without using credit, then you cannot afford it. It’s as simple as that.

The same goes for buying items you don’t need, instead of putting money into savings. The second simple step is to learn to identify the difference between wants and needs. You may want to have digital cable, but you could certainly survive without it. And even though you may be able to pay all of your bills without using credit, you might be living paycheck to paycheck. What can you do without?

Thirdly, be thankful. Gratitude is a wonderful start in adjusting your spending habits. Most Americans are blessed with a lifestyle and affluence that the majority of the world’s population would envy. If your savings rate is anemic, then consider re-evaluating what you really need. Be thankful for the things that you have already in your life. And remember that possessions don’t define you, and never will.

Provided By Realty Times/ Carla Hill

Have questions about short sales? Call the experts at 972-772-7029 or email us at debbie@debbie-brown.com!