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  Congress: Stop Playing Chicken with National Flood Insurance Deadline

  Last week, after the highly-publicized debt ceiling debate ended (for now), Congress blew out of Washington and began an early August recess. But for many Americans, the sound of crickets on Capitol Hill is cause for alarm. Read
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  Home Security Check

  The first step toward protecting your home from break-ins is to conduct a home security check that will show where your property is most vulnerable. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

• 

  Home Security Check

  The first step toward protecting your home from break-ins is to conduct a home security check that will show where your property is most vulnerable. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Lots of Mortgage Types Available

Here's a quick snapshot of some of the mortgage programs Weichert Capital Properties & Estates can arrange for buyes these days:

 State bond programs (not available in every state)- Very popular programs. Loan amount limits and downpayment requirements vary.
- NJ, PA, VA and MA state bond programs have monetized the tax credit to be made available at closing.

 FHA financing- As little as 3.5% down. Loan amounts up $729,750 in certain areas.

 VA financing- No Money Down up to $417,000.

 Conventional financing both conforming & jumbo- Loan amounts up to $729,750.

 Home Improvement Financing- An FHA 203(k) Mortgage enables your buyers to combine purchase and renovation financing - without the hassles.
- Jumbo Financing up to $1,750,000
- Fixed Rate Bi-Weekly Payments and Various ARMS Available

 Super Jumbo financing - Unlimited Maximum Loan Amount
- Provided to high net worth borrowers. Guidelines vary by client profile.

 Reverse Mortgages
- 62 and older- No income or credit qualifications- No monthly payments- Available for purchases (great for Seniors considering downsizing)- Contact your local mortgage expert or Mark Rostek for more information, 973-490-8003

As you can see, they offer a wide variety of mortgage program options. Call Steve for further information (203) 653-5628

10 Ways to Choose Your Contractor

Nicola Tarzia of The Tarzia Group offers 10 ways to choose a contractor (call him for the best way—203 322-1900).

Choose one who communicates—calls you back, follows-through, listens, and one you have “chemistry” with, a rapport, if you will.

Choose one who offers a detailed and understandable breakdown of all pricing, budgeting and the scope of the work.

Choose one who offers references or referrals – and encourages you to call them. Past clients can offer sound advice. The Department of Consumer Protection, your local Building Department, and local inspectors call all be helpful. The Better Business Bureau tracks all sorts of things about contractors.

Choose one with the experience and capabilities you require—one who has successfully completed similar jobs of the quality you require.

Choose one who is licensed in the particular field you require, and one with the insurance coverage required, including workmen’s compensation and liability insurance.

Choose one with the professional and organization skills needed, including personality and demeanor, you can relate to. Look for community involvement and longstanding business in the community.

Choose one where you may visit and see job sites (look for cleanliness and organization), then see their web sites. Request sample products, if appropriate.

Choose one who is responsive to your needs and ideas, and has good working relationships with subcontractors, suppliers, town hall, building inspectors and zoning departments.

Choose with who will gladly discuss project time lines and their accountability, including performance incentives.

Choose a contractor with longevity in the field, with a credibility, and one who understands your needs.

Rent or Buy: History Will Judge

The Wall Street Journal recently ran a story with an ominous headline: "The New American Dream: Renting."

Your blogger says ominous for reasons obvious to him: This is by any measure THE TIME to BUY a home in Fairfield County. Why?

* Interest Rates remain low--5.5%
* There are lots of homes to choose from
* Sellers are still wheeling and dealing

The article notes that the government, behind and in front of the scenes, has been manipulating home ownership in this country for the past 75 years, falling in the first three of four decades. After this, home ownership has skyrocketed.

The formation of government agencies that insured inexpensive mortgages started Americans down the trail. Then, ending red-lining in vast neighbors continued the process.

Today, the question remains: Rent or Buy. Your blogger says: Renting is for losers, buying remains the American dream. Just expect to buy somethings a lot smaller than you want; trade up in a few years; get your dream started--annual property tax deduction, annual mortgage interest deduction, and NO increases in your monthly payments if you have a fixed-rate mortgage (unlike renting).

Due call to discuss/argue: 646 734-8525!

Seller's Market Ahead?

When you work for the nation’s largest private real estate organization, you learn a lot about today’s marketplace. We speak from hands-on experience, not from a press releases or surveys of a cross-section of individuals scattered here and there. We speak from one-on-one client expectations, client behavior and client requirements…in short, with authority. Frequently, our information arrives months ahead of the market as well.

We may actually be heading into a Seller’s Market. Our absorption-rate report points to his happening in the months ahead here in Stamford. No one is talking about this anywhere.
It might seem like a smart move to wait to buy on the theory that there may be a future $15,000 tax credit, much higher than today’s $8,000 one for first-time homebuyers making less than $90,000. However, interest rates are at historic lows and home prices remain low and dropping, though at lower rates recently. It can take 2-3 months to close, so buyers waiting until November will out of luck either way. Property must close before Dec. 1 in order to qualify. Mr. Jim Weichert still describes to his thousands of agents across the country that today’s market for buyers as the “best buying opportunity in years,” by the way.

Our mortgage folks report there is good news on the horizon. The temporary mortgage limits for Fannie Mae, Freddie Mac & FHA have been extended to September 2010. Those are:
1 Unit: $ 708,850
2 Units: $ 907,350
3 Units: $1,096,750
4 Units: $1,363,000 (Owner occupied)

Also: The benchmark 10 year Treasury yield has climbed notably over the past week causing rates to begin to increase again.

4. July 31st marks the date of the new RESPA laws going into effect (RESPA Reform, Mortgage Disclosure Improvement Act and Truth in Lending). All lenders must comply. This will result in the following:
· More transparent, level and fair regulation of our industry & consistent lending practices among all lenders
· Additional controls to prevent deceptive lending practices
· Even more consumer protection
· Consumers that are better infirmed and more confident about the mortgage process

Basically, the Truth in Lending (TIL) disclosure must be done immediately upon receipt of a mortgage application, and now will be completed by the mortgage broker. If an application is taken in person, standard fees can be collected. If application is taken on the phone, three business days must pass before collecting fees. If there is any change in the application, or if the APR (Annual Percentage Rate) changes more that .125% up or down, another TIL must be done and another three days must pass before the closing.

Why would anyone need a new Truth in Lending disclosure?
· The loan amount changes
· The loan program changes
· Frees are higher that initially disclosed
· Additional fees not originally disclosed must be charges (as in buying down the rate at the last minute)

How do these changes affect you?
· When determining closing dates, allow appropriate time for disclosures

All for now. I hope this information is of use to you. Please feel free to ask me any real estate questions you may have.

Home Sales Stay in Stable Range

Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtor(R) (NAR). Email your Blogger, Stephen Bornet, for additional information, SBornet@Weichert.com

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive. “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” he said. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I., Lansing, Mich., Oklahoma City, and Las Vegas.

The PHSI in the South jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago. In the Northeast the index rose 0.6 percent to 68.1 but is 14.1 percent below October 2007. The index in the Midwest declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago. In the West, the index fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.

NAR President Charles McMillan, a broker with a Brokerage in Dallas-Fort Worth, said he’s hopeful about considerations by the U.S. Treasury. “Efforts to bring down mortgage interest rates demonstrate a clear understanding of the role housing plays in stabilizing the economy,” McMillan said. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”

Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery. “Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” he said.

Looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.

New-home sales for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.

“Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun said. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.”

The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6.0 percent by the end of 2009, and average 6.2 percent in 2010. NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.

The unemployment rate is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009. Inflation, as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.


** The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

** Market information is from unpublished snapshot data; please contact your local association of Realtors for more information.

Now These are Mortgage Rates!!!!!

The National Association of Realtors® applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation’s overall economy. Your Blogger, Stephen Bornet (SBornet@Weichert.Com) is a licensed real estate agent and a member of NAR.

The Federal Reserve is purchasing large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.

“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.

Mortgage rates, which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country. “That is the lowest rate in nearly 50 years and will bring buyers back to the market,” McMillan said. “We are pleased that the government heard our message and responded to our call for action.”

NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes. “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market.” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR continues to call on the federal government to maintain the higher loan limits passed in the economic stimulus bill earlier this year and to expand the $7,500 tax credit for first-time home buyers to all buyers and to eliminate the credit repayment requirement. “Together, all of these actions will stimulate and stabilize the housing market and begin an overall economic recovery,” McMillan said.

Mortgage Rates Among Lowest in 50 Years

The National Association of Realtors® (NAR) applauds recent actions by the Federal Reserve and the Treasury making mortgage interest rates more affordable. However, further action is needed to help the thousands of people trying to buy a home or to stem off foreclosure to get a mortgage easily and quickly. Your Blogger, Stephen Bornet (SBornet@Weichert.Com) is a licensed real estate agent and a member of NAR.

“Our members tell us that families are once again looking to enter the housing market only to find that delays, process and bureaucracy are getting in the way,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “The federal government and the mortgage lending industry must address continuing problems that are impeding the delivery of mortgage credit to home buyers and those trying to avoid foreclosure.”

In a letter to the Treasury Department, the Federal Reserve Board and the Federal Housing Finance Agency, and copied to President-elect Barack Obama’s transition team, NAR notes that in addition to lowering interest rates, the federal government must work with mortgage lenders and credit reporting agencies to eliminate processes that are making it difficult to close on a mortgage loan so that the housing market and the nation’s economy can have a robust recovery.

“Now really is a great time to buy a home. Inventory is high, prices are down and mortgage rates are near 50-year lows. We have to unclog the system and let people achieve and hold on to the dream of homeownership,” McMillan said.

NAR is recommending that the Treasury Department provide additional TARP funds for the sole purposes of making additional loans and modifying mortgages to help prevent foreclosures.

“The housing market is clogged with short-sales that take frustratingly too long to clear. Though lax underwriting standards should never return, many lenders’ credit score requirements have become overly stringent. Good people with good credit scores are finding it difficult to qualify for loans despite the historically low mortgage rates,” said McMillan.

NAR is asking mortgage lenders and mortgage insurers to make sure they have not over-corrected their underwriting standards and added unnecessarily strict underwriting standards, such as excessively high credit scores to qualify for a mortgage. In addition, credit reporting bureaus should improve compliance with the Fair Credit Reporting Act, including providing prompt responses to consumers who want to correct errors in their file.

Lastly, NAR is calling on all mortgage lenders, their servicers, Fannie Mae and Freddie Mac, and investors in mortgage assets to implement aggressive policies that result in more loan modifications to prevent as many foreclosures as possible, expedited processes for short-sales, and added liquidity to the nonconforming mortgage market.

“If rates stay low at near 5 percent or lower, home sales could rise nationally by 10 to 15 percent in 2009 and stabilize prices in many parts of the country,” said NAR Chief Economist Lawrence Yun. “That, in turn, will help reduce foreclosure pressures and lower the rate of re-defaults on recently modified distressed loans. Improved loan modification tools are also necessary. Everyone needs to work together so this can become a reality.”

NAR continues to advocate for other measures that would help create long-term stability by ensuring that safe and affordable mortgages are available throughout the nation, including making the higher loan limits passed in the economic stimulus bill earlier this year permanent and extending the temporary $7,500 tax credit for first-time home buyers to all home buyers and eliminating the repayment requirement.

“The work is not yet finished, and NAR is committed to continuing its efforts with policy makers and the new Congress and administration to get the real estate market back on track – the nation’s economy depends on it,” McMillan said.

Every family has its own holiday traditions, but when your home is on the market over the holidays it is important to decorate in a way that won't turn off buyers.

These tips will help sellers strike a good balance:

• Too many decorations mask a home's selling points: architectural details, condition, location and price.
• Avoid too many personalized decorations. You want buyers to visualize themselves celebrating the holidays in your home.
• But, don't forego decorating altogether. People expect at least some decorations, plus they add warmth to a home.
• Choose an elegant, neutral palette of fresh greens, silvers and golds, and classic whites. Avoid too much red and green.
• Take down decorations within two weeks after Christmas.
  Happy holidays!

What's it Mean (Fed Rate to Near Zero)?

The Fed is sending a message that it will print money to an unlimited extent until it starts to see the economy expanding, which is great news for consumers and the economy alike. However, what are the main takeaways for us and for the mortgage/real estate industry?

1) Mortgage rates have dropped then stabilized over the past two weeks on the news: The two main drivers are a) with a Fed Funds rate near zero, and Treasury yields following suit, investors are now looking for alternative investments (i.e. – Mortgage Backed Securities with an explicit Government guarantee) to garner higher returns and b) with both the Treasury, and now the Fed, both stating they will look to be buyers of MBS, that has stabilized prices at current historic lows.
2) A plus for housing? A hopeful bi-product of lower rates is the desire to get qualified buyer off the fence and acquire that “home of their dreams”. Many buyers have been waiting for prices to come down, and with rates at historically lows, the hope is that this will stabilize and even turn the market.
3) Cash savings: Refinancing for a lower payment, for cash-out, or both, will only add more liquidity and capital back into the global market supply.

Have questions on how to capitalize on this historic opportunity? Send an email to your Blogger, Stephen Bornet, to see how he may be of assistance (SBornet@Weichert.Com).

National Real Estate Assoc. Supports 4 Changes

The National Association of REALTORS (NAR) has developed a four-pronged approach for helping solve some of the recent real estate recession:

What's their plan?

• Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. (Questions about this? Email your Blogger, Stephen Bornet, SBornet@Weichert.com. The credit is limited availability and repayment requirement severely limit the credit's use and effectiveness.
• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
• Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
• Permanently bar banks from engaging in real estate brokerage and management. The banks have proved they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.

Trickle Down Interest Rates?

In a bold move, the Federal Reserve has unanimously voted to set a target range for its federal funds rate so that it will hover between 0.25 percent and zero. The federal funds rate, the interest banks charge each other on overnight loans, had previously stood at 1 percent and is now at a record low.

Interest rate cuts are seen as beneficial to the economy since they typically lead to more lending by making it cheaper to borrow money. In addition, the Federal Reserve said it would "employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability."

Real estate agents across the country are encouraged by the aggressive and unprecedented action our government is taking to free up money for loans, as well as the Federal Reserve's pledge to do whatever it takes to stimulate the economy.

More Than Just a Home

Buyers: Remember that there are personal, social and emotional benefits to home ownership.

In addition, the concept of “home ownership” is fundamentally sound. It has investment potential and pays big emotional dividends. While it’s still true that people can amass personal wealth through real estate investments, owning a home is so much more than that.

A home gives a sense of self-worth and accomplishment. A home provides shelter. A home offers stability and security. A home offers a nurturing environment for children to grow. A home serves as a place to gather with family and friends. A home provides a feeling of belonging within the community. A home creates memories.
Why wait?

CT-MLS to Add Westchester (NY) Homes to Site

Beginning in January, 2009, the Connecticut Statewide Multiple Listing Service, Inc. (CTMLS), will offer access to real estate property in Westchester and Putnam counties to its REALTOR® members and their clients (your blogger, Stephen Bornet (646) 734-8525 in a REALTOR).

Thanks to a Reciprocal Access Agreement signed between the Statewide MLS and the Westchester-Putnam MLS, members of the CT Statewide MLS will be able to review and search for property in the Westchester-Putnam MLS, and vice versa. CTMLS is the largest MLS in Connecticut and has the most real estate listings and REALTOR® members.

The addition of Westchester-Putnam MLS data to the Statewide MLS data makes the CT Statewide MLS the most effective means of buying or selling Fairfield County real estate for REALTORS® and their clients. Created in February of 2007, in two short years the CT Statewide MLS has brought significant improvement to the efficiency and quality of real estate market in Connecticut.

The ability for REALTOR® members of the Statewide MLS to search the Westchester-Putnam MLS combined with the massive exposure of Fairfield County listings to Westchester-Putnam real estate agents and their clients will go a long way towards improving the current challenging real estate market in Fairfield County. The Connecticut Statewide MLS is owned by the Connecticut Association of REALTORS®, Inc. and is not affiliated with the Greater Fairfield County Consolidated MLS, which does not offer access to the Westchester-Putnam MLS or expose Fairfield County real estate to Westchester-Putnam MLS members.

Foreclosures Drop 7% in Nov. - - Really

As a result of recently enacted laws extending the foreclosure process (in some states), AND more aggressive loan modification programs and foreclosure moratoriums by some lenders, foreclosure activity dropped 7 percent in November. According to RealtyTrac, an industry source for foreclosure data, this is the lowest level since June.

A decline in the number of homes in foreclosure is good news for real estate and the overall economy:

Sellers benefit because there are fewer (foreclosed, sold by banks) homes on the market. This should make it easier and less costly for them to sell their home.

Foreclosures exert downward pressure on median home values, so home prices should rebound as the number of foreclosed properties on the market decreases.

Loans could become easier to get. Banks lose money on foreclosed properties, leaving them with less money to lend.

As it becomes easier to sell homes, move-up buyers set in motion a chain of homebuying and selling. Each home sale triggers a demand for goods and services through all segments of the economy.

The recent RealtyTrac report, coupled with the government's ongoing efforts to enact programs that will modify even more loans moving forward, is encouraging news for the coming year.

Houses Not Selling? Not True!

Weichert Capital Properties & Estates:

Excerpt from a recent Weichert advertisement:

"We are still selling homes -- at the rate of one every 11 minutes."

So, buyers and sellers: Rethink the strength of the real estate market.

Weichert has safe, secure mortgage money available.

Improving Real Estate Market Forecast by NAR

July: The National Association of Realtors® (NAR) expects modest near-term movement in existing-home sales with a recovery in sales seen during the second half of the year. According to the organization’s most recent forecast, existing home sales for all of 2008 should total 5.31 million, and then increase 5 percent next year.

Lawrence Yun, NAR’s chief economist, believes the housing stimulus bill that is being considered by Congress is “critical to assure a healthy recovery in the housing market, jobs and the economy.” In addition, Yun reiterates that all real estate is local, evidenced by the fact that some areas have seen rapidly rising home sales, while in other areas, the recovery is happening at a slower pace. Prices can also vary tremendously, even within a specific town.

Also noteworthy is the fact that both the median home price and the average home price have risen for four straight months. A continuation of this trend, coupled with rising home sales, will go a long way in restoring confidence in the housing market.

NAR President Richard F. Gaylord summed up current market conditions by saying that the current market offers immediate benefits and long-term value for many buyers. At Weichert, we agree that now is a great time to buy.