Chad McDowell

No wonder used car salesmen are sleazy, it starts at the top apparently!

As bailouts continue, and we try to teach our children that money doesnt grow on trees while obviously forgetting that lesson ourselves, the automakers were back in front of Congress yesterday. All I can say is WOW!!!

After blowing through billions the automakers unveiled their new plan. The new plan involved very little planning(ironic, huh?) but involved a lot more money. The CEO of GM was on the news this morning trying to justify the additional amount saying that it would be a "Bargain"(his words!) to give the auto industry an additional $30Bil. compared to the effect of NOT giving it. With thousands more laid off and THAT negative effect on the economy, AND then of course the millions of dollars in unemployment to be paid, etc. etc. OH AND there is that little part about if they go under they cant pay back the original BILLIONS they borrowed. OOPS...nice oversight.

To me and my humble opinion, sounds like blackmail. And whats worse, we'll give in. If the last few weeks are any indication we will continue to throw any amount of money at any problem. Maybe its the Capitalist in me, but there should be no such thing as "Too Big Too Fail", if you run your company into the ground, another enterprising entrepreneur will step up and make a better company. That's how it works! If there is money to be made, and there is in the automobile industry, someone will be out there too make it. Step aside BIG THREE! That's Capitalism!

I wish I could give proper credit to this quote, but I cant remember where I heard it. "A Capitalist Democracy is the worst political system there is...except for all the rest." Well Said.

Well, the home buyers who were hoping to see the tax credit raised from $7500 to $15,000 will be slightly disappointed. Apparently there wasnt enough in $787 Billion budget to pull that off! BUT...the government has extended the tax credit of 2008 AND increased it from $7500 to $8000 giving first time home buyers a lot of reasons(8000 of them in fact)to buy a home before December of 2009.

I called a client of mine a few days ago who closed in November to make sure that he had done his taxes and taken advantage of his tax credit for buying his first home. As a family with three kids and the usual deductions that come with that AND their $7500 tax credit, he couldnt stop going on about his $11,900 tax return this year!!

These are tough times economically but the Nashville housing market is staying steady and with several no money down financing options out there AND $8000 coming back when you buy, this is a wonderful time to be a first time buyer in Tennessee!!

First time home buyers in Tennessee qualify for a Tax Credit of up to $7500 if they purchase their first home between April 9th, 2008 through June 1st, 2009!

This is a wonderful program that first time buyers need to be aware of and take advantage of. This is NOT a deduction against your taxes, it is a tax credit. There is a difference. If you file your taxes next year and you would have normally owed $1000...now you would RECIEVE $6500. If you owed nothing, you would recieve the entire benefit.

Repayment of the benefit comes two ways and it is INTEREST FREE! First, you will pay an additional $500 per year with your tax filings(again, if you would have owed $1000...now you would owe $1500. If you were going to get a tax return of $1000, now you would only get $500). That continues for 15yrs OR until you sell the home. If you sell for a big enough profit, the remaining balance comes due...if you do not sell for a big enough profit, the note is forgiven.

I urge all first time home buyers in Tennessee to consult with their tax preparer and get details on this credit and take advantage of this opportunity if it makes sense for you!

For additional information, here is a link to FAQ's about this tax credit.

http://www.federalhousingtaxcredit.com/faq.php#12

What an incredible program! If you are a homeowner over 63 years old in Tennessee you can suppliment your retirement income with a Reverse Mortgage.

What is a Reverse Mortgage?

A Reverse Mortgage is exactly what its name implies. It is a mortgage that pays you, instead of you paying the bank. And you can receive your benefit in one of three ways: monthly installments paid directly too you, a lump sum payment for you to use as you see fit, or by not taking any money at all but having no more payments on your current mortgage.

Who qualifies for a Reverse Mortgage?

Homeowners over 63 years of age. There are no credit requirements, you can have good credit or bad, it does not matter. Even REALLY bad does not matter, this is not a credit driven benefit. There are no income or asset requirements (other than owning a home), because there is no monthly payment made to the bank, you do not need a qualifying income. However, there are equity requirements, so speak to a mortgage broker to see what the equity requirements are for your area.

Will the bank take my house?

No! Just like a standard "forward" mortgage, you are on the title along with the bank as a lien holder. Your Reverse Mortgage will remain exactly as it is until the time that you no longer live in the home. The only obligations you have in order to keep your Reverse Mortgage from coming due are: you must maintain your property as your primary residence, you must stay current on your property taxes AND home owners insurance, and the property must remain in livable condition and be reasonably maintained.

At the point that you no longer live in the home, the bank STILL does not take the property. The heirs of your estate have first right to either refinance the home or sell it to pay off the debt. Should the heirs NOT take any action, then, and only then, will the bank take possession. And when the bank sells the home to clear the debt owed to them, if it is sold for a profit, that profit goes to your heirs.

Sounds too good to be true, what's in it for the bank?!?

We've all heard the saying "if it sounds too good to be true, it probably is". So let's be honest, we all know banks are not in the habit of handing out money for free. So where do they get a return on their investment? Its simple, like any other "forward" mortgage, the bank charges an interest rate. That means that when you are no longer living in the home and it comes time to clear the debt with the bank, the balance owed will be higher then the original loan, and the bank will have its profit. However, that balance can NEVER exceed the value of the home. You heirs will never be "upside down" on the home. Even if that means the bank gets shorted, that is the risk that the bank assumes when writing the original loan.

For more details about Reverse Mortgages, visit www.aarp.org for answers to other frequently asked questions.

At least its still alive and kicking here in Nashville, TN! We have more to offer then Honky Tonks and Country Music(although we excel in both), Middle Tennessee continues to be a wonderfull place to buy! And contrary to so much you hear about the credit crunch and the mortgage meltdown, you can still buy here in Nashville for NO MONEY DOWN!

We still have Rural Development Loans---100% financing with NO MI. The HUD100 loan is a wonderful program to buy previously foreclosed properties for only a $100 down payment(I know its not zero, but its close, right?!?), of course there is VA. FHA is still a great low down payment loan for borrowers and all rumors point to some sort of down payment assistance or second mortgage option returning in the near future to help make FHA a No down payment option again!

It's not as bad as CNN says it is, there are still options for prospective homebuyers!