Ellen & Doc Stephens

After weeks of rumors and premature announcements from "industry experts", Congress has finally passed the extension of two important measures for you and everyone you know. Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the Home Buyer Tax Credit. That bill will be sent to President Obama for his signature in the next day or so. We are certain that he will sign it.

So, why is that important to you?

1. The First-Time Home Buyer Tax Credit ($8,000 TAX FREE CASH) to anyone* who hasn't owned a home in the last three years - extended through (under contract April 30, 2010 - close by July 1). This means if you or someone you know has not owned a home in the last three years (and meets generous maximum income standards) Buys a home, they can get up to $8,000 TAX FREE CASH back from Uncle Sam, either as a Tax Credit or Rebate check. That's equivalent to getting an $11,000 +/- Bonus check from your employer. Over 60% of our Home sales in the last six months have been to First-Time Buyers. It was extended to keep the economy growing and to give relief to a large number of Active duty Military who have been extended in Iraq or Afghanistan who could not make the previous November 30 Deadline.

2. So, if they buy an existing home, where does the current owner move to? Now, under the new program, if you have owned your home for at least 5 of the last 8 years, you may qualify for a $6,500 TAX CREDIT when you sell your old home and buy another. It's a little complicated, so I have attached a chart from the National Association of REALTORS® that lays it out clearly. That helps move everyone up the ladder a little.

So, how do you feel about this? Some of our friends on both sides of the political aisle get exercised over programs like this. We won't argue the politics - there are enough folks doing that already. Choose up sides and have a blast. We choose to be reality-based. The programs exist. They are about to become the law of the land. They will propel home values upward again, interest rates are staying (for the moment) at historic lows, bargains abound, and this is the best time in our lifetime to buy a home - period.

*Unless you make more than $220,000 per year jointly, $110,000 if single, it is unlikely that you will ever have a better shot at getting a foothold in the American Dream than now. If you do make more than that, let's talk about investment properties! J

We are very fortunate that San Antonio remains the #1 most recession-resistant city in the entire USA. Our home values are stable and rising, we have never had the great value plunge that, say parts of California, Nevada and Florida "enjoyed", our job base (both Military and Civilian) is increasing, and it hasn't snowed here since 1985.

If you are thinking about changing your habitat, or if you know someone who might benefit from our services, we always appreciate your referrals. There is no greater compliment. Let us know how we can help you and those you love. Call or e-mail us today, or visit our website: TellEllen.com.

Like you, every day, I receive several offers to instantly repair credit (for myself or for my clients), and I pass dozens of bandit signs on street corners offering Expert Credit Repair. Here's why that's still a bad idea.

The usual way do-it-yourself gurus go about the credit repair process is to protest everything on the report that is negative. They hope that the reporting company doesn't have the staff to keep up with all of those reports, and won't comply with the thirty day deadline to reaffirm. Instead, so the theory goes, they just delete it and move on. Presto - Clean Credit!

First of all, if you are complicit in a fraudulent effort to "bump up" a credit score to qualify for a mortgage loan, that's considered mortgage loan fraud. Check with your wardrobe consultant to see how you will look in orange coveralls. At best, you will spend the next twenty years looking over your shoulder.

There are lots of legitimate things one can do, challenging truly erroneous items, settling old judgments or defaults, paying down accounts, etc., but mindlessly challenging everything also will update the adverse information with a current verification date instead of a stale one. In addition, and this is the trap many are falling into today, under a recent change, Fannie and Freddie will NOT underwrite any loan that has trade lines reported as ‘disputed'. So, while "credit repair" might remove some of the bad accounts, if any of the trade lines still show up as disputed, the borrower can't get a loan!

Working with a competent Loan Officer who is skilled and up to date in these issues is still the only real way to fix problem credit. We don't originate loans, but we work with several delightful and intelligent folks who work with people who need a little assistance with credit issues. The result is almost always a delighted client with a new home, acquired without the need for scams. If you know someone who needs a referral in the San Antonio area, we will be glad to point them in the right direction. We have a list on our website: www.TellEllen.com.

You ask, "How's the Market?" Every REALTOR® is asked that question numerous time each day, and the answer always depends upon what the questioner wants to accomplish: Buying or Selling?

As a general rule, our market in San Antonio is still robust and balanced, with qualified Buyers treated to a large inventory (7,817 homes), and well-prepared Sellers able to find a Buyer in reasonable time (92 days average). But the seemingly large inventory is really three inventories, and one of them is going nowhere.

In the last six months, according to the San Antonio Board of REALTORS Multiple Listing Service, 1,532 listings expired, unsold. They were rejected by the Market. Here's why:

Most Buyers, whether they are First-Time Buyers taking advantage of the $8,000 Tax Credit or Move-up Buyers who are getting bargains on their Dream Homes, want a home that is Move-in ready, sparkling clean, well-maintained, and priced right. (Ask yourself, when you are grocery shopping, do you buy dented cans?) The Buyers generally don't have extra funds or time available to do substantial repairs or remodeling, and they think what they can see is only the tip of an unmaintained iceberg.

Homes which are priced right (average list price to sale price ratio for the last 6 months was 96.1%), in top condition, well-staged for showing, and advertised effectively, move almost immediately and command top prices. Those which are in sad shape, but are priced as distressed properties will attract their share of Investor Buyers. They compete with Foreclosures and Lender-Owned homes, and price is the name of that game. Investors snap up those bargains almost as soon as they appear.

In the middle are the bulk of homes that sit for months, maybe getting a few showings, but generating little excitement. They are priced too high, and they are not ready for prime time. After 60 days, Buyers start wondering "What's wrong with that house?" If they make an offer, it will generally be a "low-ball", to allow for repair and redecorating money. Or, more likely, they snap up something new on the Market which is in the first group. Eventually, the Seller either lowers to price to market expectations for a lack-luster house in that condition or gives up altogether.

If you are thinking about Selling, ask for our FREE booklet 97 Easy Ways to Make Your Home Sell Faster. You may also request at no obligation our FREE Market Snapshot, which shows all the homes in your neighborhood which are for sale or have sold in the last three months. Ask your REALTOR to professionally stage your home. It's almost always worth the extra effort, and it may mean the difference in Selling and not selling. If you need specific information, your calls and e-mails are always welcome.

What happens when mortgage rates drop? Lots of good things:

• ALL homes become more affordable - Those who couldn't afford to buy can finally take the first step. Those who wanted to move-up can finally afford to buy their dream home. Investors can take advantage of bargain prices to lock in solid cash flow.

• Builders can build more homes, and employ lots of folks, buy supplies, make payrolls.

• People stuck in a high interest mortgage can refinance at a reasonable rate. (Now, we don't originate or participate in any mortgage loans, but we know several quality lenders with high integrity who can help you find the right loan for your situation.) To see if refinancing might help you, go to our Refinance Calculator.

• Blighted neighborhoods spring back to life, as the glut of lender-owned properties decreases and new owners move in.

• Homes that were hard to sell become more attractive.

To see if this is a good time for you to make a move, contact your local REALTOR®. ALL Real Estate is Local! Find a REALTOR who knows the local market well and who will take the time to counsel you about your options. If you don't have a REALTOR, ask us to refer you to one of our colleagues who fits that description in your market. Contact us.

Did you know that homes across the US are now at their most affordable in decades? Here's why:

This Month In Real Estate Video

San Antonio Homes are among the most affordable in the entire nation and STILL appreciating and going fast IF they are priced right at the market and in top condition. Homes in poor condition are FLIP candidates, and of course, the Flippers expect to make a profit after doing all the repairs, so they discount their offers. Homes in the middle, overpriced and not in top shape, just sit there month after month.

So, this is a fabulous time to BUY, especially if you know a First-Time Buyer who can take advantage of the $8,000 TAX FREE CASH from Uncle Sam. This expires on November 30, so don't delay. We expect a RUSH during October and November, and that might affect prices and loan rates.

If you or someone you know might be thinking about selling, ask us for our FREE booklet, 97 Easy Ways To Make Your Home Sell Faster. Also, we are still helping lots of folks renegotiate their mortgages to avoid foreclosure or get beter loan terms. This is a pro bono service (FREE), because we have the lender contacts and training to help. Doc has just received his CDRS Designation (Certified Default Resolution Specialist).

If they CAN keep their home, we negotiate a loan modification with the lender; if they just can't afford to keep it, but can't sell it because they owe more than it's worth, we arrange for a Short Sale - Selling for less than is owed (Short) on the home. They avoid foreclosure and get a chance for a fresh start. So, if you know anyone (anywhere in the USA) who needs a little help, please feel free to refer them to us. We have wide contacts of others across America who provide the same service.

We appreciate the many referrals we have received from our friends. Let us know how we may be of service to you.