Barry (Lynn) Miller Jr.

The other day after the tax credit was approved I was brainstorming on how to help a friend of mine sale a property he has that he of course owes more than its worth well it hit me find out was his bottom line is reduce my commission some and then sale it short by $6500 let him take out a loan to cover the difference and when he gets his tax credit pay off the note. He could then move on and buy another house in which I make the buyers agent commission it’s a win win situation but is it really.

Yes and No

Yes it helps that client move on and sale a property that has been listed on and off for 2 plus years. It helps me make a commission on two transactions but lets look at what could negatively happen to this area, if I thought of it then so did somebody else.

Let’s say there are 10 sellers that are desperately ready to move their property and say 5 get this same marketing recommendation. What’s that do to the local market, if you have 5 properties that are listed around $200k and they use this practice and lower the sales price by $6,500 then in June at the pick of the market when things are moving again, all of our comparable sales are lowered by an average of 3% (an appraisal is not going to calculate or consider this practice) there by forcing are market down even lower.

NO

I do not like this tax credit I feel that it will hurt more than it helps and yes in the short term it will generate some sales but in the long run I feel it will hurt or economy and local markets. So all I can say is be careful what kind of deals you guys put together and later this year when you have appraisal issues remember that when you point your finger at the man you have 3 pointing back at you.

I List and sale property for REMAX in Pell City AL and Logan Martin Lake waterfront property so I would like to see what your thought are in the different market areas.

God Bless, and Good luck with your business

Barry Lynn Miller

REMAX Properties Unlimited

www.biglynn.com

Big news over the last couple of days and the number 1 question I am being asked “Is the USDA Rural Development out of funds?” and “Can I close on my Loan?”

Well “YES” and “NO”

“YES” USDA has issued notice and gossip is that purchase funds may

be exhausted on or about October 27^{th 2009}

However if your lender did their job properly, they should have already reserved your funds so your closings should be ok. Going forward might be a different story but at some point they will release funds again and Start funding. What most people don’t understand is that this happens every year. This year is different because more and more people are doing this type of loan.

“NO” They are not out of funds they are just so we say on hold. The solution to this problem is simple, there are a few lenders out there that will continue to process, issue approvals and close on MOST USDA loans while waiting for more funds to become available from USDA.

Basically what happens is said lender will hold your mortgage portfolio in what lenders refer to as a warehouse line of credit and once the funds are released by USDA they then summit the file and in essence sale your mortgage to the USDA. There is some risk to said leader because these files are not insured by USDA at closing, so for those who have marginal credit don’t be discouraged that you can’t get a loan you just might have to wait until USDA has funding before you can proceed to the closing table.

If you have any USDA questions or if you would like the contact information on a lender that can fund your USDA loan then give me a call at 205-338-5555 or send me an e-mail at miller.remax@gmail.com

P.S. A good alternative to an USDA loan is the Alabama step up Program with is only one half of one percent down payment. So if you buy a property for 100K your down payment is $500. I do have a lender that can close that loan before the Nov. 30^th deadline for the $8000 tax Credit.

Sincerely

Barry (Lynn) Miller Jr.

Realtor

I'd like to invite you to join the Financial Fitness 180 family.

Please either go to this link:

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That will save you $10 on the already low price of $189.00

In todays market you need the highest score possiable if you have great credit with a 660 score you will still loose money because there is a pricing hit (your rate will be higher) for any mortgage customer with a credit score below 680.

Please visit the website if you have any questions and you may call me at anytime.

Oxford Alabama is still going strong according to CNN money (see information below) The numbers are a little misleading because they are incorporating both Anniston and Oxford and Anniston in my opinion is not as desirable as Oxford is so that being said if you are located in Oxford and wish to buy or sell you should be OK compared to the other cities around the country. Luckily for all of Alabama is varying pretty well considering the shape that the country is in.

If you are selling look for people to try and low ball because of all the bad press that bleeding over from everywhere else and if your buying don't get discouraged if a seller doesn't seem to be willing to give the property away. The forcast for the area according to CNN is slightly lower for 2009 compared to 2008 but all in all we are holding our own.

In other news Rates are looking great I hear you can get as low as 5.5% on purchase and refi FHA loans

If you have any questions about Oxford or surrounding area or if you like general information please feel free to give me a call or visit my website at www.biglynn.com

I will assist you with ever phase of the real estate transaction and I specialize in First Time Home buyers, Investment property and working with investors, Short sales, and I also have a special program for clients who wish to buy REO or Foreclosures

Your local forecast 381 markets tracked

Anniston-Oxford, AL
Forecasted change in home prices: 2008	+2.9%
Forecasted change in home prices: 2009	+2.4%

Source: FiServ Lending Solutions