Overcoming Fear of Foreclosure Critical for Many People to Keep Their Homes
RISMEDIA, October 10, 2009—Foreclosure numbers continue to rise and many homeowners are at an increased risk of losing their home. While foreclosure can be prevented, many homeowners remain confused or afraid to confront their mortgage problems and take action to help save their home. “Fear often prevents many consumers from seeking help,” said Michelle Jones, senior vice president of counseling for Consumer Credit Counseling Service (CCCS) of Greater Atlanta, Inc. “Overcoming these fears can mean the difference between staying in your home and losing it.”
CCCS counselors address some of the common fears homeowners have about seeking help:
Fear: Homeowners are afraid to let the mortgage company know they are having a problem because they think it will speed up the foreclosure process.
Contacting your lender is an important first step if you want to save your home from foreclosure. It provides you with an opportunity to explain why you have fallen behind on your payments and what steps you are taking to get back on track. Lenders have a financial interest in keeping you in your home and may be willing to alter the terms of your loan or devise a repayment plan.
Fear: Homeowners believe that if their mortgage company has already turned them down for a loan modification, there is no point in contacting a counseling agency.
Many homeowners are turned down for a loan modification because the information they provide to their lender indicates that their expenses exceed their income or that they have not provided accurate documentation and information about their loan. In other cases, the lender may have made a processing error or the investor who owns the loan will not modify loans in accordance with the Making Home Affordable program.
A housing counselor may be able to suggest alternatives that better suit your current financial situation or help you make adjustments that make you a better candidate for a loan modification with your lender.
Fear: Homeowners fear being judged by others for seeking help.
These are challenging financial times. While it may feel like you are the only one struggling, the reality is that many of your friends and neighbors are also finding it difficult to stay afloat. By seeking help, you will not only increase your chances of avoiding foreclosure, you may also serve as an inspiration to others.
Fear: Homeowners think it is better to use all of their financial resources before seeking help.
Many homeowners try to ride out the financial storm, using their savings and depleting their retirement accounts before seeking help. By the time they do seek help, they are in an even more desperate financial situation and they have spent the resources that may have given them more options in dealing with their mortgage crisis.
Fear: Homeowners facing foreclosure fear that their situation is hopeless.
For homeowners facing foreclosure, the feelings of hopelessness and despair can be overwhelming. While for some, seeking help may mean saving their home, it is inevitable that some homeowners will end up in foreclosure. A certified housing counselor can help homeowners work through the foreclosure and build a new path for long term financial success.
Fear: Companies claiming they can save your home charge large, up-front fees.
You can receive counseling from a reputable, nonprofit housing counseling agency at no charge. While there are unscrupulous businesses looking to take advantage of homeowners, there are also many HUD-approved housing counseling agencies that offer help for struggling consumers.
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RISMEDIA, October 9, 2009—The best available tool for sustaining the still-fragile housing market is the $8,000 home buyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors® testified at a hearing of the U.S. House Small Business Committee recently.
The tax credit expires November 30.
NAR Regional Vice President Joseph L. Canfora, a broker-owner with Century 21 Selmar Realty in East Islip, N.Y., also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct, which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.
“The credit is working,” Canfora said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas.
Further, NAR data has estimated that every home purchase pumps into the recovering economy about $63,000- the equivalent of one new job added to the employment figures. But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery.
In a “normal” market, optimal housing inventory is about six to seven months, he said. When the tax credit was enacted in February, inventory was 9.1 months. Because of the spurt in homes sales since then due to the tax credit, inventory declined to 8.2 months in August, closer to “normal” than at any time since 2007.
In urging Congress to extend the credit, Canfora said, “The more robust the credit and the greater its duration, the greater the chance that the housing market can perform its traditional role of helping the economy move out of a recession.”
“But problems arising from the implementation of the HVCC may reverse the market’s positive momentum at a time when the real estate industry is just starting to show signs of a rebound in many markets,” Canfora said. According to an NAR survey of its members, approximately 40% of Realtors report having lost at least one sale since May 1 because of appraisal problems due to the HVCC rules. Twenty percent say they have lost more than one sale.
The culprit, he said, was that appraisal management companies, which have gained prominence because of the HVCC, have assigned appraisers to areas where they lack geographic competence. That has resulted in unreliable appraisals. It is not uncommon that second and third appraisals have to be done to ascertain fair market value. Appraisal fees have also risen and are being passed on to consumers.
Both Fannie Mae and Freddie Mac have issued guidance on appraisals, but NAR is calling upon the mortgage giants and the Federal Housing Administration to issue a consolidated guidance that should be codified and incorporated into the existing policy to ensure proper information on appraisals is available to the real estate industry.
FHA Commissioner David H. Stevens has asked FHA staff to explore that recommendation with Fannie and Freddie. Last month, Stevens reaffirmed FHA appraisal policy, taking into consideration the unintended consequences that have burdened Fannie and Freddie, and issued two Mortgage Letters focusing on appraisal changes. The policy reaffirms appraiser independence and geographic competence.
The FHA announcement also included timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; and shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers.
Canfora told the committee that FHA has performed remarkably well through the housing crisis. “The reason the FHA capital reserve ratio fell below 2% had nothing to do with FHA’s current business activities. It is simply a reflection of falling housing values in their portfolio.” He cited an FHA announcement that a 2009 audit will show that even if FHA does nothing, the cap reserves are expected to rise back to that required level within a few years. He also pointed out that FHA total reserves are not in as dire straits as some have reported since the cap reserve fund is not the only FHA reserve fund- FHA also has a separate cash reserve that is higher that it has even been- and the combined assets total $30.4 billion.
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U.S. Homebuyers Pay Closer to Listing Price in August, but Are Still Negotiating Thousands in Discounts
RISMEDIA, October 9, 2009—Home buyers in much of the U.S. are still paying thousands of dollars below the home’s asking price, but had slightly less negotiating power in August 2009 than they did in July, according to the August Zillow Real Estate Market Reports. Buyers paid a median $6,525, or 3% less than the last listing price on homes bought in August, down from $7,018, or 3.3%, less for homes bought in July. Negotiating power peaked in January 2009, when buyers were paying 4.5% less than last listing price, a median of $10,096. Meanwhile, sellers continue to cut prices on unsold homes. One quarter (24.7%) of all homes listed for sale on Zillow had at least one listing price reduction as of Oct. 1, 2009. The median U.S. price reduction was 6.6% off the original listing price.
Florida home buyers again in August had the most negotiating power, with buyers in the Vero Beach metropolitan statistical area (MSA) paying 8.9%, or a median $20,974, less than the last listing price. Buyers in the Naples MSA paid 8% less than list price. The Naples, Daytona Beach, Miami-Fort Lauderdale, Ocala, Lakeland, Punta Gorda, Melbourne, Gainesville, Tampa, Jacksonville and Fort Myers MSAs also ranked, in that order, as the top markets for negotiation.
But in two California markets, buyers paid more than asking price during August. In the El Centro MSA, buyers paid 2.2%, or a median $2,479, more than asking price. In the Stockton MSA, buyers paid 1.3%, or $2,515, more.
“Negotiating power is a clear reflection of inventory levels, which dropped nationally in August. Tighter supply in some markets is translating into less of a discount off listing price,” said Zillow Chief Economist Dr. Stan Humphries. “Unfortunately, the brisk spring and summer home shopping season is drawing to a close now, and with foreclosures on the rise again, inventory levels will likely head back up in the coming months, leading buyers’ negotiating power to regain the ground it lost in August.”
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1.4 Million Families Have Taken Advantage of First-Time Home Buyer Tax Credit, More Claims Expected
RISMEDIA, October 8, 2009—With the First-Time Home Buyer Tax Credit deadline quickly approaching, the Internal Revenue Service recently reminded potential home buyers they must complete their first-time home purchases before Dec. 1, 2009 to qualify for the special first-time home buyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.
The credit of up to $8,000 is generally available to home buyers with qualifying income levels who have never owned a home or have not owned one in the past three years.
The IRS encouraged all eligible homebuyers to take advantage of the first-time home buyer credit but at the same time cautioned taxpayers to avoid schemes that help ineligible people file false claims for the credit. Currently, the agency is investigating a number of cases of potential fraud and is using computer screening tools to identify questionable claims for the credit.
Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.
The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.
For those considering a home purchase this fall, here are some other details about the first-time home buyer credit:
-The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing jointly. The limit is $4,000 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $80,000 or more.
-The credit reduces the taxpayer’s tax bill or increases his or her refund, dollar for dollar. Unlike most tax credits, the first-time home buyer credit is fully refundable. This means that the credit will be paid to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
-Only the purchase of a main home located in the United States qualifies. Vacation homes and rental properties are not eligible.
-A home constructed by the taxpayer only qualifies for the credit if the taxpayer occupies it before Dec. 1, 2009.
-The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on the taxpayer’s modified adjusted gross income (MAGI). MAGI is adjusted gross income plus various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.
-The credit must be repaid if, within three years of purchase, the home ceases to be the taxpayer’s main home. For example, a taxpayer who claims the credit based on a qualifying purchase on Sept. 1, 2009, must repay the full credit if he or she sells the home or converts it to business or rental use at any time before Sept. 1, 2012.
Taxpayers cannot take advantage of the credit even if they buy a main home before Dec. 1 if:
-The taxpayer’s income is too large. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
-The taxpayer buys a home from a close relative. This includes a home purchased from the taxpayer’s spouse, parent, grandparent, child or grandchild.
-The taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses. For example, if the taxpayer bought a home on Sept. 1, 2009, the taxpayer cannot take the credit for that home if he or she owned, or had an ownership interest in, another main home at any time from Sept. 2, 2006, through Sept. 1, 2009.
RISMEDIA, October 7, 2009—Workers who want to share the latest news with Facebook friends and Twitter followers will need to wait until after hours or risk violating company policy, a new survey suggests. More than half (54%) of chief information officers (CIOs) interviewed recently said their firms do not allow employees to visit social networking sites for any reason while at work.
The survey was developed by Robert Half Technology, a leading provider of information technology (IT) professionals on a project and full-time basis, and conducted by an independent research firm. It was based on telephone interviews with more than 1,400 CIOs from companies across the United States with 100 or more employees.
CIOs were asked, “Which of the following most closely describes your company’s policy on visiting social networking sites, such as Facebook, MySpace and Twitter, while at work?”
Their responses:
Prohibited completely 54%
Permitted for business purposes only 19%
Permitted for limited personal use 16%
Permitted for any type of personal use 10%
Don’t know/no answer 1%
“Using social networking sites may divert employees’ attention away from more pressing priorities, so it’s understandable that some companies limit access,” said Dave Willmer, executive director of Robert Half Technology. “For some professions, however, these sites can be leveraged as effective business tools, which may be why about one in five companies allows their use for work-related purposes.” Willmer cautioned that employees should always exercise good judgment, no matter how lenient their company’s policy. “Professionals should let common sense prevail when using Facebook and similar sites- even outside of business hours,” he said. “Regrettable posts can be a career liability.”
Robert Half Technology offers the following tips for protecting your professional reputation when using social networking sites:
Know what’s allowed. Make sure you understand and adhere to your company’s social networking policy.
Use caution. Be familiar with each site’s privacy settings to ensure personal details or photos you post can be viewed only by people you choose.
Keep it professional. Use social networking sites while at work to make connections with others in your field or follow industry news- not to catch up with family or friends.
Stay positive. Avoid complaining about your manager and coworkers. Once you’ve hit submit or send, you can’t always take back your words- and there’s a chance they could be read by the very people you’re criticizing.
Polish your image. Tweet or blog about a topic related to your profession. You’ll build a reputation as a subject matter expert, which could help you advance in your career.
Monitor yourself. Even if your employer has a liberal policy about social networking, limit the time you spend checking your Facebook page or reading other people’s tweets to avoid a productivity drain
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If you are a 1st time Home Buyer, Real Estate Investor or just need to prepare your home to sell quickly please allow me to help you through your Real Estate transaction.Visit www.SanDiegoHomeSold.com
You will find me to be a careful listener, a prudent advisor, a shrewd negotiator and very familiar with what is currently happening in the real estate market in the San Diego area. I approach each transaction with dedication, integrity and a sense of humor. I work in partnership with each client to ensure his or her success.
I have lived and worked in San Diego for over 25+ years. I currently live in Carmel Valley ,CA and hava an office on Prospect Street in La Jolla. Keller Williams Realty office locations in La Jolla, UTC, Carmel Valley, Rancho Bernardo, Escondido, Carlsbad , Mission Hills, El Cajon & La Mesa. As a local area expert with knowledge of the communities, my objective is to work diligently to assist you in meeting your real estate goals. I'm a standing member with these real estate organizations:
Not only have I learned to work smart in this business I'm not afraid of working hard to achieve my Goals!
San Diego encompasses a large area with many communities. I live in Camel Valley but I do sell homes in these other San Diego County Beach communities: La Costa, Carmel Valley , Cardiff ,Del Mar, Torrey Pines, Rancho Santa Fe, Solana Beach, La Jolla, Fairbanks Ranch all the way up to Carlsbad. My home is right off the highway 56 so I also cover these Golf communities of Rancho Bernardo, Carmel Mountain Ranch, Poway & Rancho Penasquitos. My office is on 848 Prospect in La Jolla. Although I do sell high-end homes I have been currently working with investors and 1st time home buyers to help them buy pre-foreclosure propertys, fixers and Short Sale homes in San Diego County. Some of these investors turn the properties for profit others keep them for the rental income.
Most of my business is by referral so If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call or e-mail me
"Donna and I really enjoyed working with Gary Giffin. He made us feel at ease knowing that the sale of our home was in good hands with a qualified real estate expert. Keller Williams and Gary took care of everything, advertising, holding open houses, displaying the proper "For Sale" signs, following up with prospective buyers and of course selling our home. Escrow was a breeze because Gary handled it all! I would highly recommend Gary Giffin and Keller Williams for the sale of your home."
Mike & Donna Krytek ~ 2221 Vita Rodeo, El Cajon CA ~ Sellers
THE ENGLISH RESIDENCE
THIRTY-SIX O-FIVE-DASH-TEN SAN DIEGO, CA~ Buyers
GARY, JUST A FEW WORDS OF THANKS FOR THE WAY YOU TOOK CARE OF ALL MY NEEDS DURING THE PURCHASE OF MY HOME. YOU WERE ALWAYS READY TO HEAR WHAT I WANTEDAND LET ME CHOOSE THE HOME FROM THE ONES THAT YOU TOOK ME TO VIEW. I KNOWTHAT YOU TOOK CARE OF A HUGE AMOUNT OF THE BURDEN KNOWING THE LACK OF TIME IHAD TO COMMIT TO THE DETAILS. YOU HELPED MY BROKER GET THE HELP THAT HENEEDED TO GET THE LOAN APPROVED AND CLOSED. THE ADDED SURPRISE OF SPONSORINGA HOUSE WARMING RIGHT DOWN TO THE DECORATIONS WAS A TRUE EXAMPLE OF YOURPROFESSIONALISM. MY THANKS TO BOTH YOU & APRIL FOR YOUR COMMITMENT TO MYHOME LIFE AND I LOOK FORWARD TO OUR FUTURE AS FRIENDS AND ASSOCIATES.
MY SINCERE THANKS,
PATRICK ENGLISH
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