Sharon Koziel

I have just finished the week from hell. It wouldn't be so bad but it appears this is the new norm. I am writing more offers than in past year but many of my buyers are not getting their dream home because they are being bid out of the race by cash buyers. I feel so sorry for these lovely people because they too want the American dream of owning a home. These are people with good income and good credit but they just have 5 or 10% to put down on their first home. With all the short sales on the market I find it hard to believe that there are this many cash buyers. I am now wondering if the agents are just not accepting our offers because we are using an FHA loan. For many of my buyers this is their best option. These are strange times but I'll keep trying and the market will correct itself someday. Keep smiling!

It appears the banks are finally realizing that it is better to help in a short sale process before the homeowner is behind in mortgage payments. Many banks are now telling borrowers to call them before they fall behind and try to work out a short sale process that is easier on them and the bank. This is truly a step in the right direction. Until now many banks wouldn't even talk to a borrow until they were 2 to 3 months behind in their mortgage payments. Even FHA is stepping up effort to help homeowners before they lose their home. According to the HUD website "Homeowners with FHA-insured mortgage loans who are experiencing financial hardship are now eligible for loss mitigation assistance before they fall behind on their mortgage payments. Previously, these homeowners were not eligible for such assistance until after they had missed payments. The Helping Families Save Their Home Act of 2009 signed into law by President Obama expanded FHA's authority to use its loss mitigation tools to assist FHA borrowers avoid foreclosure to include those facing "imminent default" as defined by the Secretary. FHA today issued guidance to FHA-approved loan servicers on how to assist these FHA borrowers."

MORE HOUSING NEWS:

The pending home sales index increased to 96.6% in December from a level of 95.6% in November. The index plunged in November in conjunction with the original expiration of the homebuyer tax credit and has not yet rebounded significantly. Now that the tax credit has been extended and expanded, the pending home sales index and thus existing home sales are expected to increase over the next several months.

The MBA mortgage applications index surged 21.0% to 620.7% for the week ending January 29. The purchase index increased 10.3% on the week as the refinance index rose 26.3%. Refinancing activity accounted for slightly less than 70% of new mortgage application activity. Despite this week's gains, the level of mortgage activity remains quite low indicating stagnation in the housing recovery.

It has been a couple a weeks since we read of the disaster that occurred in Haiti. We all rushed to help but now that the memory is fading we have other activities that take up our days. That is why I am reminding us all that the people of Haiti need our attention daily. Please ask yourself and your customers to contribute to the cause. We can be proud of our fellow REALTORS and NAR for the help they have given but lets keep our eye on the goal. The REALTORS® Relief Foundation of the National Association of REALTORS® has contributed $550,000 to help the victims of the Haiti earthquake but it is calling on the over million members to keep the dream alive.

On January 22, 2010 we read that "a $500,000 donation will go to the Clinton Bush Haiti Fund, headed up by former U.S. Presidents Bill Clinton and George W. Bush, to provide immediate relief and long-term support to survivors. Another $50,000 has also been donated to The Harvest of Haiti, a humanitarian outreach program founded by the 2007 winner of REALTOR® magazine's Good Neighbor Award. The program supports Haitian orphans, delivers clean water and provides medical care for more than 3,500 Haitian people each year.

The Foundation is also calling on REALTORS® nationwide to help Haitian victims through the REALTORS® Relief Fund. NAR members can donate using the Foundation's online contribution form."

Please keep this campaign in the minds of everyone you contact. God Bless!

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The government announced new Short Sales guidelines early in November. After talking to many of my fellow agents it appears that very little has changed in the minds of the borrowers. They still can't talk to their bank, they get different answers to the same question depending on who they are speaking to. Many homeowners have upon learning that their mortgage does not qualify because they took out the loan over a year ago shake their heads and say " I'm upside down and need help just like the fellow who took out his loan a few months later".

It seems funny to me that we have home values that have fallen to 2005 values but only those homes sold in 2009 can do a short sale! What is the logic in this? If you haven't read the new guidelines here they are:

"To qualify under these new guidelines:

• The property must be the home owner's principal residence.
• The home owner must be delinquent on the mortgage or close to defaulting.
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
• The borrowers' total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines."

Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)