October Home Sales Rise - Largest Monthly Increase in 10 years

The National Association of Realtors said home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade. This is certainly good news for the real estate industry as well as for the overall economy.

Many of these purchasers were rushing to close before the original deadline of November 30th to be eligible for the $8000 first-time buyer tax credit. I would expect that November numbers will be just as good, if not better.

Now that the credit has been extended to April 30th, the frantic pace may slow down somewhat; however, in many resort areas, which tend to lag the national economy by 18-24 months, buyers are enjoying a terrific market in which they can pick and choose and bottom fish for deals. Those opportunistic days are already over in places like San Diego and Las Vegas where sellers are receiving multiple offers and prices have started to stabilize and even rise.

Vail Valley buyers are wise to consider getting into the market now for several reasons: the supply is still enormous which truly provides a great opportunity to find the perfect home, interest rates are historically low, many sellers are in trouble and will accept much less than they are asking and the tax credit has been extended for those wishing to trade up or buy for the first time (in the last 3 years).

While we may not be at the very bottom of the market, we are well into the trenches and opportunities abound!

Reverse Mortgages

Times are a changing, and the US population continues to age bringing more and more people closer to retirement. Many hopeful retirees have a substantial portion of their net worth tied up in their homes. What if you are unable to make your mortgage payment comfortably and want to stay in your home?

You may want to consider a reverse mortgage, which could allow you to stop making mortgage payments and even receive a monthly income. Instead, the amount you would owe in the form of a payment in addition to a hefty "fee," would be accrued and added to your principal balance (negative amortization). When you pass on or sell the house, your mortgage would be paid off.

Currently, only FHA is offering this program, and it is not right for everyone and should be thoroughly understood. AARP has valuable information on this topic.
There are many options available, and some people may need to tap into the equity in their home without having to make monthly payments common when drawing on a HEQ line of credit.

How do you spell RELIEF?...... FNMA - do you hold my loan?

FNMA (Fannie Mae) announced a new program last week aimed at helping home owners stay in their homes. FNMA announced the D4L (deed for lease) program which may allow homeowners or renters to stay in their homes by signing a 12-month lease and turning the deed over to FNMA. Second liens need to be forgiven and the rent payments can't exceed more than 31% of the family's gross income. This program is designed for people who do not qualify for loan modification and are facing foreclosure.

How do you tell if your loan is owned by FNMA (Fannie Mae) or FHLMC (Freddie Mac)?
Check these sites:

http://loanlookup.fanniemae.com

https://ww3.freddiemac.com/corporate/

Homebuyer Tax Credit Extended

Obama signed an extension to the home buyers $8000 tax credit. The credit will extend to buyers who close on or before April 30,2010 and includes buyers who wish to purchase a more expensive home. The credit applies to homes with a purchase price under $800,000. The income limits were raised to $125,000 for single taxpayers and to $225,000 for those filing jointly. The previous income limits were $75,000 / $150,000. An estimated 2 million buyers will take advantage of this tax credit extension.

The real estate markets need all of the help they can get. This is a boost and will certainly help what will likely be a soft 2010.