Joe Murphy

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.

It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?

Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights

• the stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by April 30, then you will qualify as long as you close by July 1, 2010.
• "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
• All U.S citizens that file taxes are eligible
• The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT

• Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
  
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
  
• The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
• The maximum price of the home can not exceed 800,000. Bummer..

When you need a great Realtor in Manatee County please give me a call. I am ready to help.

Short sale expert, REO-Bank owned, and investment properties

Joe Murphy

Coldwell Banker Residential Real Estate

941-780-3260

This was a great day! I just had a short sale come back approved in less than 30 days pending!

I love Wells Fargo. I listed the home preparing the seller for a long painful process that would take 6 months to a year to complete. I advised her to call her lender to let them know she wanted to do a short sale.

The NEXT day, I get a call from the assigned negotiator. That same day, I get a call from the BPO agent! THIS WAS BEFORE I EVER HAD AN OFFER!

Within two weeks I get the unit under contract with a realistic buyer with a 90 day approval deadline.

The seller provids all required documents, and we sent in the contract.

(light at the end of the tunnel, and this was a short tunnel)

I get a call from the negotiator the next week with some questions, and some required changes for the HUD. No big deal.

Then, today, I get the call that the deal is approved, and the WRITTEN approval is on its way.

The only down side is that the deal has to close THIS MONTH. Wow, I called the buyer's agent who was in disbelief. They were expecting a close next year, and hopeful that we would get a response in 90 days.

This is how all short sales should go. Kudos to the Short sale dept at WELLS FARGO.

I hope this is a sign of things to come for 2010!

If you need help with selling a short sale in Manatee County Call me today. Free advice, and no cost short sale assistance. Helping buyers and sellers in Manatee county for the past 7 years.

Joe Murphy 941-780-3260

www.manateemoves.com

I just attended a Foreclosure rescue seminar this past weekend. One of the things that I learned is their is another victim besides the homeowner, the INVESTOR. These "mortgage backed securities" were supposed to be safe investments. Triple AAA rated, SAFE, reasonable returns. The kind of investments that were sold as low risk. They too are being burned in this real estate bubble.

The people in the middle: servicer(s), and the firms that sold these mortgages to the investors got their profits and no consequence.

The homeowner loses their home and credit, and the INVESTOR that actually put up real money, takes the loss. No one that originated, or sold, and resold the mortgages had any loss. In fact they are making money with fees from the foreclosures! The pension fund that owns your mortgage does not have an REO dept, do they!

I attended the seminar because I wanted to gain insight, and perspective from homeowner's and their attorneys that are attempting to defeat, or force REAL loan modifications. In some (rare) cases the homeowners are getting their home "free and clear", most often the attorneys are able to stall the foreclosure sale to help the homeowner get back on their feet. Their arguments make sense. Some of it attracts the people that are just trying to get their mortgage wiped out. Sounds good, but really this is the exception not the rule.

What I found was a lot of people that are in tough situations, upside down in their homes, but wanting desperately to keep them. These were people that I meet everyday that end up short selling their homes.

My experience is that the "token" loan modifications never include principle reduction, and typically only reduce the payment by a very small percentage. Soon they realize that if their home has lost half the value it makes no sense to stay. Short sales look attractive.

One major insight that I gained was a major conflict of interest between the "SERVICER", and the "INVESTOR". It was amazing to see how much money was made off the mortgage mess for all the people in the middle. Every time the loan was sold, repackaged, split-up, someone made money.

The servicer makes money, handling the payments for the investor. They also make additional fees when they start dealing with a default situation, then when the homeowner defaults, they make money farming out the REO deal. The investor gets the short end of the stick, they get the loss. I think that more investors would be eager to actually take principle reduction loan mods. If the "middle men" had some real incentive to make a deal happen. Just the fixed foreclosure costs being reduced from the principle would be incentive for many homeowners to stick it out, work harder, and find a way to keep their home.

In my market homes are selling for HALF of their boom price. When will the banks, and investors get it that keeping people in their homes is good for them, and everyone else too.

If you or someone you know needs help buying or selling real estate in Manatee County please give me a call, text, or email. There is help for you if you need it! I have closed 38 transactions in the past 12 months, and I am ready to help with yours. Short sales do not have to be scary.

Joe Murphy, Broker-Associate

Coldwell Banker Residential Real Estate

941-780-3260

joe@manateemoves.com

www.activerain.com/manateemoves

www.manateemoves.com

High schools try to get pregnant teens out of the main student population. Pregnancy can be contagious among teen girls.

People that get the flu are told to stay home, and away from other people. The Flu is contagious.

When there is group of people clamoring around a sales rack, grabbing an item quickly and decisively, other shoppers can be influenced to do the same. Like when there is a hurricane warning and people start hording items. Shopping can be contagious.

I think that foreclosures are also contagious. One family on a street runs into hard times, gets late on their mortgage payments, and decides to give up the home either as a short sale or foreclosure. Soon neighbors are starting to do the same whether they have a hardship or not.

I have seen concrete examples doing short sales here in Bradenton, FL. One of my last meetings with a home owner is distress revealed that on their street there were 6 other homes adjacent that were in some phase of foreclosure. What was interesting to me was the neighborhood was one that was perceived as stable, with less than a 3% annual turn over, developed "pre-boom", and historically very little active inventory. After looking at the tax records it looked like that cul-de-sac got hit with the plague.

After my meeting with the homeowners, I found out that they had known of 2 of the other families losing their homes, they too were surprised by the news of the other 4 homes being lost to the banks.

I have seen clumps of foreclosures, and short sales in other areas but they were usually neighborhoods that were 1. Built during the boom years (2004-2006) 2. Bought by investors and flippers 3. Had high turnover rates, and high inventory.

Could foreclosures be contagious? My opinion is YES, when a home owner learns that a neighbor, or friend is giving up their home I think that it lessens the negative perception to others about how bad foreclosures are. Just like most people today are much less "showy" with their lifestyles. Facing economic hardship, especially as it relates to home-ownership is viewed as much less of a taboo today, then it was just a few years ago.

I found this interesting document through searching for info on foreclosure defense, and loan modifications. With the rise in mortgage defaults attorneys that specialize in foreclosure defense have plenty of work

Most people that I meet with are interested in first a "principle reduction loan modification". They are having a tough time keeping up with the mortgage because of lower income, interest rate resets, or they just realize that they are severely upside down in their home. I do not see many instances where the homeowner has been successful in reducing the mortgage balance.

It makes common sense that the current home owner is really the best person to own the home most of the time. I am only there because they were denied a reasonable loan modification, or they really need to move. That''s when the foreclosure defense attorney can potentially help.

In working short sales I have seen there effect is mostly stalling a foreclosure sale and responding to homeowners being served foreclosure papers.

This guide gives examples of cases where Judges have actually reduced or wiped out mortgages on defendants properties! ( which is really what everyone really wants!)

Anyway, this makes for an interesting read into the world of foreclosure defense, and I thought I would post it as a resourse for consumers to get educated, and other agents to gain knowledge. It is written by an attorney for other attorneys so be prepared.

http://www.miamidade.gov/csd/library/foreclosure_dtlrespa.pdf

Let me know what you think.