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President Obama promised some creative approached to fixing the economy. His latest budget recommendation to reduce the mortgage interest deduction for high income taxpayers has produced many arguments on both sides. The approach may be creative, but it is also very controversial.

This year, the mortgage-interest deduction for owner-occupied homes is estimated to cost the government $100 billion. This makes it the largest government for subsidy for housing and one of the most expensive tax deductions. The new budget hopes to raise over $318 billion over the next decade by lowering the itemized tax deductions for the wealthy, which includes interest paid on home mortgages. Those currently paying income taxes at the 33 % and 35 % rates would only be able to claim deductions at the 28 % rate. Therefore, if you are in the top tax bracket you would only realize a savings of $280 for every $1000 in deductions instead of $350, starting in 2011 should the proposal take effect.

The real estate industry strongly believes mortgage deductions should be left alone, especially at a time when the housing market is floundering. Lawrence Yun, chief economist for the National Association of Realtors, does not think this is a good time for such a policy, and noted, "the source of economic problems is falling home prices, and this proposal raises additional uncertainty about where and when prices would set a floor."

Other economists feel those that can afford homes will buy them with or without a deduction. They also believe the mortgage-deduction is what led borrowers to purchase homes that they cannot afford. In states such as Florida, California, and New York where the population is large, this cap proposal could have a tremendous effect, as many home prices have been declining and foreclosures are on the rise. Economists again faulted the mortgage-interest deduction for inflating prices in high housing supply market such as Manhattan and coastal California. Edward L. Glaeser, a Harvard economist says, ""If supply is fixed, a demand subsidy will just push up prices, making housing less affordable for ordinary Americans,"

Stay tuned! The debate on this issue is just beginning. Check out the Marla Schneider Team website today for the best in Wilmette real estate. Whether you're buying or selling on the north shore, we can help.

With more houses currently being listing on the market, you may be surprised what buyers are really looking for in their dream homes. Every potential buyer looks through many homes; sadly in the last twenty years, most houses have the same kinds of floor plans and the same kinds of outside design. Sellers are counseled to make everything neutral, so even the insides are similar. Homebuyers just want something that jumps out at them and yells, "BUY ME". For every buyer, this one compelling feature is different. If your house has a unique feature, promote it to potential buyers.

Architecture is a given. Some buyers are attracted to unusual architecture, whether it be a specific style of home: American Colonial, Victorian Colonial, Classical House Styles, Gilded Age Styles, Frank Lloyd Wright Styles, 2oth Century Styles, Post War Styles, Modern Styles - from the 1930's to present, "Neo" House Styles - from 1965 - Present, Spanish and Mediterranean Styles, French Houses, Earth Houses, Prefab Homes, or Dome Houses. Even if you hired an Architect and had your home designed, finely designed homes will attract buyers. Architectural preferences go in and out of style, so emphasize the features of what you have.

The "going green" trend is flourishing, especially now that the new stimulus bill is offering tax credits for making homes more energy efficient. More buyers are searching for updated houses with more efficient features. Home buyers want energy efficient heating and cooling systems, foam insulation, appliances, filter, sky lights, and solar panels in the homes they are considering purchasing. Buyers are looking at the long term picture, making a conscious effort to make smarter choices for their future. The National Association of Realtor conducted a study and estimated the average homebuyer is spending an extra $12,400 to put extra amenities in their homes. Even paying $50 a month extra on their mortgage payments for "green" foam insulation so they will save $150 on their utility bills! The going green trend is spreading, and as more home buyers are looking for a home, they are looking for homes that have the features already included.

Some buyers also want "spoiling features." With many of the houses having the similar features, you could easily sell them on your home with something as simple as a large master bath. Especially one with his and her sinks, a walk in shower, jetted tub, and walk in his and her closets. Make that your strong point. Portray it as if it is a hidden sanctuary. Somewhere they can disappear to when all the stress of the day has taken its toll, and they know that jetted tub awaits them with soft music, bubbles, and they can disregard the world around them.

Playrooms are marvelous for the families with small children. If they envision a room arranged safely for a youngster to play in, this can be a wonderful selling point to a home. If you have an agent showing the home to a young couple, she can advise if they plan for children in the future they can visualize what they might do with that space, or possibly turn it into an office or game room!

Now then there's the backyard. This is the ultimate retreat on a gorgeous day. You can easily help buyers envision themselves sitting on a gorgeously handcrafted back deck, as they view the beautiful landscaping , the fountains, the pond filled with brightly colored tiny fish, the delicious flowers growing so nicely that they planted weeks before.. Besides that relaxing jetted tub, this can be another place sells the house.

Do you need a realtor who can translate the unique features of your home into the language buyers speak? If so, the Marla Schneider Team can help you sell your Glenview home. Move with Marla!

To help up to 9 million borrowers stay in their homes, the Obama administration has launched a "Making Home Affordable" program. This program is designed to keep struggling borrowers in their homes through refinanced mortgages or loans that are modified to lower monthly payments.

To qualify for the modification program, which will run through 2012, you must provide your most recent tax return, two pay stubs, and "affidavit of hardship." Your loan can only be modified once, and this is only for loans made on or before January 1, 2009. These mortgages are for single-family properties worth up to $729,750 (depending on the area.) Lenders could reduce the interest rate as low as 2 percent over five years, with the rate rising to 5 percent until the loan is paid off.

The refinance program is only good for those who have loans with Fannie Mae or Freddie Mac. You must apply by June 2010 to be eligible. You should contact your loan officer (or the servicing company that sends out your bill) to see if your loan is owned by one of these companies. These two companies own 31 million of U.S. home loans which accounts for more than half of U.S. Mortgages. A senior Treasury Department official told reporters that this will not stop all homes being foreclosed, but will help those who are the "most responsible." (In other words, your home must be able to be made affordable by the programs.) Other government officials also believe this is only a partial fix to our failing economy, and in fact, many in areas with high volume of plunging real estate, such as California, Florida, Nevada, and Arizona are not eligible for the programs.

Finding banks willing to participate may also be an issue. Pava Leyrer, president of Heritage National Mortgage in Randville, MI, has seen these types of programs hyped up in the past and fail as he never sees anyone participate in them. Under the new federal programs, lenders have financial incentives to work with buyers.

With so many people struggling and search for second jobs to stay afloat this modification program could be a great help to many families close to losing their homes. If you are this situation, do take advantage of these programs if they apply to you. You can save money and your home. Just remember to please be patient when applying for these programs as many mortgage companies are going to be flooded with calls.

Now's a great time to settle in Cook County. The Marla Schneider Team is waiting to help you find it. Move with Marla to a beautiful home in Glenview, Northbrook, or Wilmette!

Some potential homebuyers are sellers themselves. In a market where it often takes longer to sell a home and where it is harder to get the asking price, these buyers have a dilemma.

Typically, homeowners that sell one home to buy another want to secure their replacement home first. The market makes it hard. Few people want to be straddled with two mortgages. Unfortunately new mortgage lender requirements make it even more difficult. In the past homeowners could purchase a new home before selling the old one by claiming rental income for the home that was being sold if it didn't sell. Now, most mortgage lenders will not consider rental income for unsold properties.

The homebuyer can offer to purchase a new home contingent on the sale of their old one by having a clause to this effect put in the contract. Most sellers will accept the contingency offer as long as the purchase agreement includes a release clause. The release clause allows the seller to continue to offer the property for sale. If another offer is received, it can be accepted in a back-up position. All new offers are subject to the collapse of the primary offer.

If another buyer comes along, the seller can then notify the primary buyer that they must remove the contingency offer within a certain time frame and provide proof of their financial resources to purchase the home. If this is not done, then the primary offer must be withdrawn and the property would go to the back-up buyers. With sellers anxious to move on, they may be reluctant to accept the contingency clause, but the release clause protects them.

Unfortunately, some buyers will not have success with the contingency offer, either because the seller refuses to consider it or another buyer comes on the scene before they can carry through with their plans to purchase. If this happens then the buyers may have to consider waiting to sell their current home first before they commit to buy. A provision could be added to the contract to allow the sellers to rent their current home for a specified period of time after closing. If this option is not available, then the seller could temporarily move to a rental until they locate their new home.

In real estate, like with most everything in life, timing is everything. Working with a good realtor is essential to helping you coordinate the timing of buying and selling your new home. Move with Marla! The Marla Schneider Team will help you market your North Shore home and find a new one.

So you want to refinance your home. Perhaps you bought when the rates were a couple points higher than now or maybe you have an adjustable rate mortgage you'd like to convert to a conventional mortgage. Current rates are inviting but the problem is with you. Maybe your credit is poor, you have excessive debt, you have negative equity, or your income has fallen. In this era when the flip side of lower rates is tougher credit requirements, the homeowner who could really benefit from a lower rate (and the lower payment) may not qualify to get one. Though it makes sense to mere mortals that lower payments are a better fit for people with less income or more debt, bankers don't think that way.

There is no quick fix to any of the barriers bankers might see to refinancing. They will look at the loan-to-value (LTV) ratio and hope to see 20%. If you have a low LTV, you could reduce the amount of your loan by making lump sum payments, assuming you have access to income tax refunds, savings, retirement accounts, bonuses, etc. You could also pay extra each month to reduce principle and interest on the loan. You could also pay down your debt, which would improve creditworthiness in the eyes of lenders. You could get a better job or a second job to improve your income picture. While any of these ideas are great in theory to help you qualify for refinancing at some point or to improve your long-term financial picture, you might not be able to do any of these things. A chat with your financial advisor is in order to discuss your options.

If your payment is too high, but your job is stable, and you would have no problem making a lower payment that falls within 31 to 38% of your income, you might be able to qualify for loan modification. Lenders have been looking more favorably at plans that lower payments to 38%, while new Federal plans aim for31%. To find out about whether this would work for you, contact your lender or a housing counselor at the Illinois Homeowner Assistance Initiative at (888) 995-HOPE.

The Marla Schneider Team will help you find your ideal home in Glenview. Move with Marla!