Ron Barnes

Our job as professional Realtors^® these days is to listen to all the excuses people use to put off buying a new home. "The market will keep going down. The interest rates are staying low. The windows are a little dirty. There is no reason to hurry in a buyer's market. I'm looking for a $350,000 home for about $140,000." I'm sure my fellow agents can come up with a few more. It would be hilarious if it were not so tragic, watching people wring their hands in "analysis paralysis" while the deal of their lives slips away before their eyes.

Yesterday, President Obama signed legislation to extend the home buyer tax credit, and to expand it to include all buyers. THAT IS ALL BUYERS! We can thank our own Georgia Senator Johnny Isakson for hounding everyone in Washington until the legislation was passed by both houses of congress and the president. Not an easy task in this environment. New buyers get $8,000 and repeat buyers $6,500 subtracted from their taxes, and the qualification limits were expanded as well. Of course that is the way the bill should have been passed the first time, but don't get me started!

So let's examine the excuses.

Both the fed's FHFA Housing Index and S&P's Case-Shiller Index agree that home prices seem to have stabilized and are showing signs of recovering.

Interest rates are indeed staying low ... for now. They're only going up from here.

The new tax credit will expire on April 30, 2010. Even Senator Isakson says he will not support another extension since anyone who is interested in buying a home has plenty of time to act or go home empty handed. So, you don't have that much time left anymore.

If you are looking for someone to practically give you a house for nothing, you will probably be disappointed. However, there are some fantastic buys out there if you get up and get moving to take advantage of the opportunity instead of the seller. It is amazing to me how rude some people have been in this market when making a ridiculously low offer on a home, and getting "miffed" at rejection.

Take charge of the opportunity you have sitting right in front of you! Make the deal of the century, wash the windows, and enjoy the fruits of your wise decision for the rest of your life. The selection is fabulous and the prices are right.

If you, like many people today, are faced with a mortgage which is delinquent or about to become delinquent, you may qualify for help from Uncle Sam. The Home Affordable Modification Program (HAMP) was enacted in February 2009 to help keep families in their homes. All lenders who have loans backed by Fannie Mae or Freddie Mac automatically participate. HAMP is designed to help avoid foreclosure and the associated expense and distress, but in the case of inevitable default, it streamlines the process for short sales as an alternative.

HAMP is far too complicated to completely cover in this article, so you should contact your lender for assistance and request a loan modification. Your real estate professional may be able to help you get started, if they have been trained and understand the Making Home Affordable (MHA) process. Only loans on primary residences are eligible. You will be asked to provide proof of financial hardship. There are limits on the amount covered by the program, but most homes will qualify. The loan must have originated on or before 1/1/09, and the payment must be equal to or greater than 31% of your gross monthly income.

Participating loan servicers (there are over 2300) must offer you the opportunity to modify your existing loan. That is not to say that you will actually receive a modified loan, but the servicer must give you the opportunity to qualify. If that happens, you will receive a proposed reduction in your loan payment.

If you do not qualify for a modification, or do not accept the proposed modification, the lender must then offer you the opportunity to attempt a short sale. The process for a short sale is significantly different than what we have been accustomed to, since the servicer sets the price and term of the listing, which ranges from 90 days to one year. They cannot conduct a foreclosure sale during the period of the short sale listing. Although the homeowner eventually loses the home, they are allowed to stay in the home a little longer, make arrangements to relocate, may encounter less damage to their credit score, and in some cases may receive a relocation allowance. Homeowners may not attempt a short sale under MHA without the assistance of a real estate professional, which is also good advice for any type of short sale.

STATE OF GEORGIA

OFFICE OF THE GOVERNOR

Sonny Perdue
GOVERNOR

For Immediate Release Contact: Office of Communications

Thursday, September 17, 2009 (404) 651-7774

Statement of Governor Perdue Regarding the Department of Human Services Contract with ACORN

ATLANTA Governor Sonny Perdue issued the following statement today regarding the Department of Human Services contract with ACORN which expires this month:

I want to thank Sen. Rogers and Reps. Graves, Keown and Setlzer for bringing the Association of Community Organizations for Reform Now (ACORN) contract to my attention. In July, I directed my office to review all consulting contracts the state has with outside vendors to look for budget savings; that review did not identify the ACORN contract, because it does not involve state funds. The State of Georgia will not renew the contract, which expires in 13 days. Further, I have issued an Executive Order that prevents executive branch agencies from doing business with ACORN in the future and calls for a review of any existing contracts with ACORN.

The text of Governor Perdues Executive Order is below:

Whereas: O.C.G.A. § 50-5-50 states that it is the public policy of the State of Georgia that contracts and other procurement activities be conducted with integrity and in a manner that will increase public confidence; and

Whereas: Although it is always important that the State does business with organizations with integrity, in this current budget environment it is especially vital to monitor the use of our scarce resources; and

Whereas: To date, 70 employees of the Association of Community Organizations for Reform Now (ACORN) have been convicted of crimes committed in the course of their work for the organization; and

Whereas: There are numerous investigations, indictments, and prosecutions currently pending against ACORN and its staff throughout the nation; and

Whereas: As a result of recent actions by ACORN, the U.S. Census Bureau ended its relationship with ACORN on September 11 and the U.S. Senate voted 83-7 to cut off federal funding from ACORN on September 14; and

Whereas: Recent acts of ACORN employees and agents resulted in ACORN subjecting itself to an internal review of its acts and practices;

Whereas: ACORNs current acts and historical conduct make clear that financial involvement with organizations such as ACORN is contrary to the public policy of the State of Georgia and the best interests of its citizens.

Now, therefore, by the power vested in me as Governor of the State of Georgia, it is hereby

Ordered: That all state departments, agencies, boards, bureaus and commissions including without limitation the Board of

Regents and the University System of Georgia as defined in O.C.G.A. § 50-5-77 and within the executive branch

(hereinafter Agencies or Agency), are hereby prohibited from entering into any future contracts with ACORN or its

subsidiaries or affiliates.

It is further

Ordered: That all Agencies are hereby directed to cease all existing funding for ACORN or its subsidiaries or affiliates unless such funding is legally obligated. If an Agency determines that such funding is legally obligated, that Agency is directed to inform the Executive Counsel to the Governor of its determination.

It is further

Ordered: That all Agencies are hereby directed to provide to the Executive Counsel to the Governor a copy of all existing contracts

or other agreements between the Agency and ACORN or its subsidiaries or affiliates no later than September 23, 2009.

It is further

Ordered: That no later than September 23, 2009, all Agencies are hereby directed to provide to the Executive Counsel to the Governor a copy of all existing contracts or other agreements between local governments and ACORN, its subsidiaries or affiliates that involve state funds.

This 17^th day of September, 2009.

The Helping Families Save Their Homes Act of 2009 signed into law on Wednesday, May 20^th, 2009 (Pub. L. 111-22) provides a 90-day notice requirement and additional protections for tenants in foreclosed properties.

Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.

- During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause.

- If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.

- At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.

- The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.

These provisions expire on December 31, 2012.

Short sale is a term that really had little if any use during the period when real estate was spiraling out of control in many parts of the country. Many people still ask me questions about short sales. Here are a few of them:

What is a short sale? Short Sale is the negotiation with a lender to accept less than the outstanding mortgage loan when the homeowner is unable to continue making their payments, and the balance of the loan is more than the market value.

What causes a short sale? It can be caused by job loss or significant loss of income, relocation, an adjustable rate mortgage "reset" to a higher rate, health issues, divorce, or some other reason that would cause the borrower to be in an "upside down" position with depleted assets.

Why would a lender agree to lose money on a short sale? Lenders will sometimes agree to accept less in order to avoid the expense of foreclosure. Their decision is based totally on the best course of action to limit losses, known as loss mitigation. They are not concerned about the welfare of the borrower. Nothing personal, just business.

Why would a seller want to agree to a short sale? Having a foreclosure on your credit report is topped only by bankruptcy in damaging your score. A short sale will lower your score by 80 to 100 points, and you may qualify for a new mortgage in as little as twelve months. Foreclosure will likely drop it by over 250 points, and could cause you to wait three to five years to qualify for any reasonable mortgage. You will still lose your house, but at least the damage to your credit will be greatly reduced.

Is there anything I can do to avoid a short sale or foreclosure? If you can prove that you can support a loan modification, call your lender and request that they modify the terms of your mortgage. This is the best alternative, but banks are becoming more reluctant to agree to modifications. They are finding that it costs money to modify, and statistics are showing that a high percentage of modifications are failing again.

Who should I call to handle a short sale? Short sales should never be attempted by the borrower directly. Make sure that the real estate professional you select has received adequate special training in loss mitigation.

When should I seek a short sale? Seek help if your payments start falling behind and you have no idea how to get them current. Preferably you should act before you are sixty days past due. Be advised that not everyone will be approved for a short sale.

How long does a short sale take? It varies with the lender attitude. It can be as little as a few weeks or as long as a few months.

There are five things the homeowner should NEVER DO:

•· Never deed your property to a third party.

•· Do not sell your home at a huge discount without lender approval.

•· Never authorize a buyer to deal directly with your lender.

•· Never pay "up front" fees to anyone!

•· Do not do nothing, and expect the problem to go away.

It is a benefit to the homeowner, the lender, and the entire community to keep foreclosures from taking place if at all possible.