Tony and Libby Kelly, CRS, ABR, ePro, SRES, CLHMS, CNHS

Oregon has just been named as one of 10 U.S. states at greatest peril of following California over a state budgetary cliff.

The national economy has begun to rebound but Oregon is likely to have a harder time. Unemployment is expected to remain high, which leads to lower tax revenues, which makes coming up with enough money to pay for schools and other public services difficult.

On top of high unemployment rates voter mandates that include long sentences for repeat criminal offenders mean some budget cuts are off limits.

California drew national attention to the risk that states would go broke when it had to issue IOUs to contractors and taxpayers this year because it simply could not pay for essential state services. So now other states are being studied to see if similar issues are surfacing around the country.

There are some options that Oregon voters have to counteract this possible catastrophe. They could give lawmakers more leeway in the spending and taxing decisions. Most importantly they could reverse the mandatory kicker rebate that Oregonians get when there is left over money, this prevents the state from acquiring any reserves for a rainy day.

These options are long term solutions though and some tough choices need to be made to save us in the next year or two.

http://www.oregonlive.com/politics/index.ssf/2009/11/oregon_among_10_states_at_grea.html

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The majority of U.S. cities experienced an upswing in the median price of single-family homes sold during the three months that ended Sept. 30th. This is the second consecutive quarter of gains. Nation wide the median home price went up $7,000 from the previous quarter.

The number of homes on the market has started to decrease indicating that we are closer to price stabilization. The concern is maintaining a steady number of buyers who are employed and therefore qualified to buy a home.

Much of the recent increase in home prices has been attributed to the government's first-time homebuyer tax credit. Which is probably why an extension and expansion to that credit was approved recently.

The $8,000 tax credit to first time buyers was scheduled to expire on Dec. 1st. Now, not only will it be in effect through the end of June, but those who have owned and occupied a residence for the last five years (out of eight) can trade up and get a $6,500 tax credit. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

This could be as helpful, or maybe even more helpful then the previous version because so many more people will qualify.

http://money.cnn.com/2009/11/10/real_estate/latest_home_prices/index.htm

http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/index.htm

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

As we all know by now, the current state of the economy was created by mortgage lenders who were giving out money to people who did not previously qualify.

In the aftermath, many are now taking these banks to court for unfair and predatory practices. Banks have been going through these lawsuits for years but recently the number has jumped. Some have already settled out of court for millions of dollars. Banks like Wells Fargo and Countrywide have been sued by homeowners in an effort to keep their homes.

Some are seeking money for damages because they've already lost their house or paid off their mortgage. Others are looking for a loan modification, they just want their mortgage to be affordable.

Many have joined in on class action lawsuits because they do not agree with practices like high interest rates, misleading introductory rates and lack of income verification. These practices are called predatory because these loans are pretty much unaffordable, and given to people who do not understand what they are signing.

An example of these unaffordable loans is the originated payment option adjustable-rate mortgage. This type of loan allows borrowers to make very low monthly payments, and the unpaid interest is then added to the principal.

Even the NAACP is suing claiming discrimination against minority borrowers.

The largest predatory lending settlement was with Bank of America. They agreed to spend $8.4 billion to lower the interest rates or loan balances of nearly 400,000 Countrywide customers with subprime loans or payment option ARMs. This made the number one mortgage lender in the country accountable for putting borrowers in loans they didn't understand, couldn't afford and could not get out of.

http://money.cnn.com/2009/10/08/news/economy/Predatory_lending_lawsuits_increase/index.htm?postversion=2009100907

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

Was anyone besides me wondering what in the world they've been building behind the Bridgeport Whole Foods? Well the Tigard Times tells me that it is a new hotel. Someone didn't get the news about the economy. But sometimes a down economy is the perfect time to act.

A family-run Salem company called VIPS Industries opened up the Grand Hotel in August. They used to own a restaurant on this same spot but it did not work out. Then Bridgeport Village moved in and an opportunity arose. VIPS Industries always knew this location would be great, that is why they held on to it.

The new hotel has 124 rooms and suites, complimentary breakfast, meeting rooms, a pool and its own parking garage.

http://tigardtimes.com/news/story.php?story_id=125485285982056600

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

We all know the saying Location! Location! Location! but how big of an impact does it really have on home value. How much would your house be worth if you picked it up and moved it across the country?

An index that come out on Wednesday compared similar homes in "move-up buyer" neighborhoods. It compares the prices charged for 2,200-square-foot, four-bedroom, two-and-one-half bath, single-family homes in more than 300 markets around the nation.

$363,401 is the average for the U.S. but in Grayling, Michigan it sells for just $112,675. That makes Grayling the most affordable market in the nation.

La Jolla, California is on the other end of the spectrum. A comparable house there will run you $2.125 million. What does La Jolla have that Grayling doesn't? Weather for one. They don't have rush hour traffic and they are 15 minutes from downtown San Diego.

Grayling has much to love, like all the outdoor activities in and around the Au Sable River, but Michigan has a much slower economy.

Variations are not only between states but within states. California holds 8 of the top 10 highest priced markets, but there are some affordable towns here too. Just north of L.A. is Lancaster where the sample home would go for $165,205 which is almost $2 million less than in La Jolla, California.

Some states have much less variation. Oklahoma's price spread is less than $10,000. In Boise, Idaho homes cost $215,432 compared with $204,518 in Coeur d'Alene

http://money.cnn.com/2009/09/23/real_estate/home_price_comparison/index.htm?postversion=2009092316

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)