Joe Long - Purchase Perfect

The link below is an article written by Meg Sullivan, outlining the research done by two UCLA economists that argue Government Intervention makes recovery from a depressed economy worse, not better.

I found it pertinent to note now as the argument has never been more relevant. Certainly we are facing two different situations, and different circumstances. Unions and Corporations that played a role in the recovery from the Great Depression (or lack thereof) have been replaced by struggling job markets and credit strapped banks, but the central issue remains the same, will Government Intervention hurt or help our economy recover?

The Economists argue that FDR's New Deal policies led to increased labor wages, and increased unemployment, while the elimination of anti-trust prosecution led to collusion and an increase in the costs of goods of services.

If you aren't sure where you stand on the stimulus package, or the Government Intervention in the market this article is a good place to start. Clearly whatever happens, much care needs to taken to be sure that the Government does not in effect hinder the natural recovery process of the markets.

I'm reminded of a quote: "If we choose to ignore history, we are doomed to repeat it."

I am certainly not going to promise you any priceless wisdom on this issue, nor will I pretend to understand the economy to the point where I could sustain a coherent argument either way, but I find it interesting that once researched thoroughly, the Man credited for getting our Country out of it's largest economic crisis, may in fact have been responsible for prolonging it!

Use your voice, speak your mind, and follow your heart...

http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx?RelNum=5409

The following housing states are for both Madison, and for Wisconsin as a whole. Some markets may be down but Madison is a perfect example of how all Real Estate markets are local.

Between 2003 and the time of writing this blog, Home prices in the Madison MSA have increased 29.8%, compared to 28.2% for the rest of the state. Nationally prices have declined, but here in Madison ytd our home prices have appreciated 1.2%.

In our MSA, the average home price is $227,400, higher than any other MSA in Wisconsin, and Wisconsin as a whole. If you had purchased a $200,000 home in Madison 5 years ago, your equity appreciation alone would be worth $54,000!

Madison has very stable employment, the largest non-farm sector of which is Government. This is partially due to our large University. The State and Local government employ 23% of the Madison MSA non-farm workers. Trade, Transportation, Utilities, Professional and Businesses Services are the next largest employers.

Employment in the Madison MSA is expected to grow .4% in 2008, which is greater than the State and National trend. It is expected to be .4% in 2009, 1.6% in 2010 and 2.3% in 2011.

If you are still on the fence about buying here and laying down your roots, don't wait too long. Nationally pending home sales have increased 7.2%. New construction permits and housing starts are down, and current inventory numbers just released show the inventory is coming of the market, partially due to sellers and banks reducing purchases prices for buyers.

All of these stats point to the turnaround of the buyers market. Prices are stabilizing, inventory is disappearing and at least in Madison, we are experiencing growth.

Please do not wait for the bottom to make your decision, because when the bottom comes, you will have already missed your opportunity to take advantage of the buyers market.

I wanted to shine a little light on an amazing program that does not get much promotion, the FHA Good Neighbor Next Door home loan. This is a program to help borrowers who are employed in Law Enforcement, pre K through 12^thgrade Teachers, (Public or Private Schools) Firefighters and Emergency Medical Technicians (EMT's).

The highlights of the program are as follows:

A borrower that falls into one of the categories listed above, is eligible to purchase a HUD foreclosure at a 50% discount from the list price. This means an incredible buying opportunity for anyone in these categories that intends to purchase and occupy the property as their primary residence for at least 3 years.

To be clear, this is not a "fix and flip" program. HUD requires owner occupancy for a minimum of 3 years with this program and imposes strict penalties should the owner occupancy rule be broken. Borrowers are required to sign a "silent second" mortgage on the property at closing securing the other 50% of the equity should the terms be violated.

The Good Neighbor Next Door Program only reqires a $100 down payment! Closing costs and prepaid items will still be the responsibility of the borrower.

Other highlights of the Good Neighbor Next Door Program:

• Eligible borrowers must live in the area they are purchasing the HUD property
• To purchase a HUD property through the program you must be working with a Realtor (you may work with your own agent, or we will recommend an agent for you)
• Only single family homes/condos qualify, no duplex or triplex, etc...
• No first time home buyer requirement
• Earnest money of at least 1% is required

For more information, contact me, for a pre-approval consultation.

Premier Financial Solutions, a company I work very closely with and a company that has done a great service for several of my clients was recently featured on a local news story here in Madison.

Premier works both on credit history, removing credit errors and repairing credit, and on credit education, preparing their clients to maintain their credit worthiness in the future.

I wanted to share this with you, in hopes that if you are one of the many prospective homebuyers that are either on the fence, or have been denied for a mortgage due to your credit history you will contact a reliable professional like Premier and myself, and work towards your families financial future.

To contact Premier Financial Solutions go to www.thecredityoudeservewisconsin.com.

Many, many, many homeowners have found themselves forced to make a tough decision, to feed their family or to keep a roof over their head. And if you're one of these people or have a friend or family member that can just no longer make it you know it's a painful embarrassing situation to be in.

I'm talking to clients on a weekly basis in this situation, "I could make my payment until my Husband lost his job" is what you're saying, or "I thought I could refinance out of my ARM when my home appreciated and now I owe more than my home's worth!"

Some people did just buy too much house, or made a bad financing decision. I'll be the first one to tell you the blood from this mortgage crisis is on every ones hands. The Presidential nominee's will tell you the lenders ripped you off, and the media will blame it on the economy. The bottom line is the bank is guilty or creating the product, and the banker is guilty for selling it wrong, but in the end the consumer is just as guilty for signing the papers. And now WE'RE ALL paying the consequences.

If you are in this situation, and you don't want a foreclosure to ruin your credit for 4 years (5 very soon) and your chances of getting a conventional loan, consider a better option, a SHORT SALE.

A short sale is what occurs when you communicate to your mortgage servicer your need to get out of your financial obligation on the home and the servicer agrees to approve a sale on the property for less than what is owed, forgiving the remaining debt. It is a better option than foreclosing for most servicers because it is very expensive and time consuming for them to foreclose on your house, and in most cases the short sale will net them more proceeds in the end.

I work with a network of full time Real Estate Agents that are experienced in working with foreclosures, negotiating short sales for sellers and writing offers for buyers looking for a good deal. If you are unsure of how to negotiate a short sale yourself, or you would like more information regarding the process or even how to purchase a short sale please contact me and I will refer you to an experienced Real Estate Agent to help you navigate your situation.

You have options, if you cannot negotiate a short sale you may qualify for loan modification. A loan modification can be negotiated either by the seller or by a company specializing in modifications (for a fee). You may be able to freeze, or reduce your interest rate for a period of time if you have yet to receive a foreclosure notice.

The worst thing you can do is nothing! There are still good people here to help!