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OBAMA CARE AND A 3.8% REAL ESTATE TAX???

Dolly OBrien — Mon, 26 Sep 2011 15:35:00 GMT

I was talking with my husband’s boss and she told me about a conversation with her pastor’s wife. The pastor and his wife decided to put their house on the market as a short sale, now, because they were going to lose $60,000 anyway and they wanted to avoid the 3.5% sales tax on real estate sales in 2013. The pastor’s wife said that it was in the Obama Health Care bill. Whoa!! I never heard about a 3.5% sales tax on real estate sales. NAR and MAR would be all over that. I would have been inundated with calls to lobby my congressmen. So I did what every conscientious person does, I “Googled” it. There is a 3.8% tax on unearned net investment income (income that may or may not come from the sale of property) for persons who earn more than the amounts specified in the bill. Unearned income is the income that a person derives from investing their capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.

So here are some pertinent facts:

1. The 3.8% tax is not a tax on all real estate sales. It is an investment income tax which could possibly result in high earning home sellers paying the tax.

2. Only those person(s) with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to the 3.8% net investment income tax.

3. A person who sold their principal residence would be subject to the 3.8% tax only if they made a profit of at least $250,000 ($500,000 for married couples filing jointly) on the sale of their home, and then the tax would only apply to the portion of the profit above the $250,000 ($500,000 for married couples). The Internal Revenue Service says that to qualify for the $250,000/$500,000 exclusion, a seller must have owned the home and lived there as the seller’s "main home" (principal residence) for at least two years out of the five years prior to the sale.

Here are some reasons why most of us will not have to pay the 3.8% tax:

1. The median price of a home (from June 2011 to July 2011) in the Midwest has slipped down to $146,300 from $147,700, and fell 2.9 percent from the previous year. Obviously, none of those sales could possibly generate a $250,000 profit, and so none would be subject to the tax.

2. The Tax Foundation, in a report released April 15 2010, said the new tax on investment income (including real estate) "will hit approximately the top-earning two percent of families" when it takes effect in 2013.

Those are the facts, just the facts. No hype, no partial truths. Most of us will not be affected by this part of the health care bill. If you are affected by it, “Congratulations” for being in the top 2%. I hope that this clears up some of the misinformation floating out there in the cloud.

1 1/2 Story For Sale in Burns Township

Dolly OBrien — Wed, 06 Oct 2010 18:50:00 GMT

Diamond in the Rough

• 1,638 sq. ft., 2 bath, 1 bdrm 1 1/2 story - MLS®$50,000 - Priced to Sell!!

Burns Township, Shiawassee County - 1.5 STORY FIELDSTONE HOME ON 3.46 ACRES. “HANDY-MAN SPECIAL”. NEEDS LOTS OF WORK. NUMEROUS OUTBUILDINGS. SUBJECT TO BANK APPROVAL OF A SHORT SALE.

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YOU CAN BUY A HOME WITH LITTLE OR NO DOWN PAYMENT!

Dolly OBrien — Fri, 20 Aug 2010 21:35:00 GMT

I was watching Good Morning America, earlier this week and Melody Hobson did a spot on mortgageshttp://abcnews.go.com/GMA/video/homeowners-fall-mortgage-payments-11426728, specifically Fannie Mae and Freddie Mac. Here is a short synopsis: “The good news is the interest rates are very, very low. The bad news is that you can’t get a loan unless your credit score is 730 and you have 20% down”. If I was looking to buy a house and couldn’t meet those criteria, I would have thought “I can’t buy a house”. The problem is that she missed more than 50% of the market – the Government loans - FHA, VA, and Rural Development. In some areas, FHA and RD (rural development) loans make up more than 70% of the loans. Let’s look at these three loans:

FHA – 3 ½% down payment, seller can pay upto 6% of the buyers’ closing costs, a credit score over 620, more lenient debt to income ratios http://www.hud.gov/buying/loans.cfm. Those homes must meet certain criteria, determined by an approved FHA appraiser. Those required repairs are typically safety issues, broken windows, peeling paint, the roof and furnace must be determined to last at least 3 years, any steps over 3 must have a hand rail. Any other required repairs would be determined by the FHA appraiser. There are maximum loan limits (area specific) for FHA loans. There are also two loans available with FHA for homes that need repair– the 203K Standard Renovation Loan and the 203K Streamline Renovation loan. They allow those repairs to be rolled into one loan. Conventional loans to initially buy a home do not allow for additional monies for repairs.

VA – Veterans Administration loans for those that have served us in the militaryhttp://www.benefits.va.gov/homeloans/. The highlights are “0” down payment, closing costs can be paid by the seller or rolled into the loan, interest rates that are lower than a conventional loan. They also have a minimum standard that the house must meet similar to the FHA loans.

Rural Development (RD) – also a “0” down payment loan, a credit score over 620, upto 6% closing costs that can be paid by the seller or rolled into the loan http://www.rurdev.usda.gov/Home.html. This loan also has a minimum standard that the house must meet similar to the FHA loans. There are income limits with this loan. RD loans are restricted to those areas that are considered rural. These loans are funded by the government for a specific time frame and when those monies run out, they can’t be funded until the next funding date. I work with a mortgage company that (when this happens) holds the loan until the government funds are available and then funds it thru Rural Development.

To summarize: there ARE loans available for a large portion of the population, there is a 9 month inventory of homes available for sale, and home prices are down an average of 25% or more in many areas. There are loans available for those homes that need renovation or remodeling. You can buy more home, with some of the lowest interest rates in years, with a little or no down payment.

IT IS A GREAT TIME TO BUY A HOME!!!

3332 Grantsburg Dr in Churchill Downs is Sold!

Dolly OBrien — Fri, 23 Jul 2010 11:11:00 GMT

Churchill Downs, Lansing - The single story at 3332 Grantsburg Dr has been sold.

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804 N East St in Eaton Rapids is Sold!

Dolly OBrien — Wed, 09 Jun 2010 13:13:00 GMT

Eaton Rapids, Eaton County - The single story at 804 N East St has been sold.

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Just Listed - 708 Carom Circle in Franklin Farms

Dolly OBrien — Fri, 14 May 2010 13:30:00 GMT

Franklin Farms, Mason - Just Listed - 708 Carom Circle, a 1,086 sq. ft., 2 bath, 3 bdrm single story. $64,900 - Priced to Sell!!.

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Single Story For Sale in Owosso

Dolly OBrien — Fri, 16 Apr 2010 14:36:00 GMT

GEM OF A HOME!!!

• 1,106 sq. ft., 1 bath, 2 bdrm single story - MLS®$85,900 - GREAT HOME! GREAT PRICE!!

Owosso, Shiawassee County - This is one of those rare finds of perfect price, condition and location. Great curb appeal - brick and aluminum exterior. Beautifully decorated. The foyer opens onto the living and dining rooms. Spacious living room with wood burning fieldstone fireplace and built-in display shelves. Large windows let in the light. Oak look laminate floors throughout the home. Large formal dining room with lots of windows. Kitchen with white laminate cabinetry, granite look countertops, tile floor and hexagonal tile backsplash. Newer stainless steel range, microwave, dishwasher and side-by-side refrigerator remain with the home. Kitchen with peninsula, also snack bar, pantry and under soffit lighting. Slider to the covered patio that leads into the privacy fenced backyard. Nice sized Master Bedroom - decorated in restful colors. 2nd bedroom - charmingly decorated with a large storage unit with display shelves. Large linen closet. Bath with tile floor and tub surround. Plaster walls throughout home. Newer water heater. Hot water heat system and Lennox central air-conditioning. Nicely landscaped with raised planting beds. Shed for storing your gardening tools. 1 car attached garage. Lower level laundry includes the washer and dryer. Full basement - waterproofed by InstaDry. Warranty is transferable to the new owner. Located at the end of the street for privacy. Don't miss the Gem! It won't last long!!

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New Listing - 1418 Cherry Lawn St in Owosso

Dolly OBrien — Fri, 16 Apr 2010 14:36:00 GMT

Owosso, Shiawassee County - Announcing a price reduction on 1418 Cherry Lawn St, a 1,106 sq. ft., 1 bath, 2 bdrm single story. Now MLS®$85,900 - GREAT HOME! GREAT PRICE!!.

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2 Story For Sale in Williamston

Dolly OBrien — Tue, 23 Feb 2010 15:03:00 GMT

Designed with Distinction!!!

• 1,610 sq. ft., 2 bath, 3 bdrm 2 story - MLS® $168,900

Williamston, Ingham County - Enter this wonderful home thru the tile floored entry with beadboard closet. Open staircase with oak handrail. Soaring cathedral ceilings in the living room and dining room. 2 pillars divide the living room and dining room with cabinets with storage underneath. Dining room has tiled floor. Oak eat-in kitchen with tile floor. Ceramic topped range remains. Refrigerator – negotiable. Kitchen has sliders to the large deck that overlooks the open fields where the deer play. Formal living room with Palladian window over sliding window. Large master bedroom with master bath and large walk-in closet. 1st floor laundry – washer and dryer negotiable. 2nd bedroom with newer laminate flooring. Large 3rd bedroom with walk-in closet and newer laminate flooring. Small upstairs office with multiple phone lines. Many updates: new light fixtures and ceiling fans, newer carpeting, oak-look laminate flooring in upstairs bedrooms. Full bath with wall-to-wall mirror. LL family room with wood blinds and display shelving. LL exercise room. LL storage room with built-in shelving. 100 amp electrical service. Burglar alarm and Invisible fence for your dog. 2 car attached garage with lots of built-in shelving.

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Price Reduced on 6257 Grand River Rd in Burns Township

Dolly OBrien — Sat, 09 Jan 2010 13:13:00 GMT

Burns Township, Shiawassee County - Announcing a price reduction on 6257 Grand River Rd, a 1,638 sq. ft., 2 bath, 1 bdrm 1 1/2 story. Now MLS®$79,900 - Priced Reduced $10,000!.

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Single Story For Sale in Franklin Farms

Dolly OBrien — Tue, 22 Dec 2009 01:45:00 GMT

• 1,086 sq. ft., 2 bath, 3 bdrm single story - MLS®$69,900 - Priced to Sell!!

Franklin Farms, Mason - STUNNING 3 BEDROOM, 2 BATH RANCH CONDO - GARDEN LEVEL REAR UNIT. MANY UPGRADES. GORGEOUS CHERRY GALLEY KITCHEN WITH GRANITE LOOK COUNTERTOP. CUSTOM COPPER TONED PAINT ON WALLS FOR THAT OLD WORLD LOOK. BLACK APPLIANCES INCLUDED. DINING AREA WITH SNACK BAR. GREAT ROOM WITH TRADITIONAL FIREPLACE. SLIDERS TO PRIVATE PATIO AREA THAT OVERLOOKS NATURE AREA. HALLWAY HAS DYNAMIC PLUM WALL AS A FOCAL POINT. GOOD SIZED MASTER BEDROOM WITH WALK-IN CLOSET AND MASTER BATH WITH CUSTOM GOLD-TONE WALLS. 2 NICE SIZED BEDROOM WITH MAIN BATH. FIRST FLOOR LAUNDRY CLOSET WITH WASHER AND DRYER. 1CAR DETACHED GARAGE IS INCLUDED WITH THIS HOME. $99 ASSOCIATION FEE INCLUDES TRASH REMOVAL, SNOW REMOVAL, EXTERIOR MAINTENANCE, LAWN MAINTENANCE, LIABILITY INSURANCE AND FIRE INSURANCE. WHY RENT, WHEN YOU CAN OWN SOMETHING THIS WONDERFUL!!!

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Price Reduced on 4909 Barnstable Lane in Delta Township

Dolly OBrien — Tue, 15 Dec 2009 11:21:00 GMT

Delta Township, Eaton County - Announcing a price reduction on 4909 Barnstable Lane, a 2,756 sq. ft., 4 bath, 4 bdrm 2 story. Now MLS®$275,000 - .

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Single Story For Sale in Eaton Rapids

Dolly OBrien — Fri, 04 Dec 2009 15:47:00 GMT

Delightful Ranch on 1 A Park-like Lot

• 1,244 sq. ft., 1 bath, 2 bdrm single story - MLS®$110,900

Eaton Rapids, Eaton County - Charming 2 bedroom (with possible 3rd) home on a beautifully landscaped 1 acre lot. 1244 SqFt of delightful touches. Completely redone in1997 with many custom details. Wonderful neutral decor. Spacious light oak kitchen with peninsula and large eating area. All appliances included. Galley rail above cabinets. Eating area has oak floors. Large master bedroom with mirrored closets with built-ins and custom textured glass shutters. 2nd bedroom with oak floors and mirrored closet doors. Study or possible 3rd bedroom with many oak built-ins; bookshelves, desk with wraparound counter and floors. Wall of windows to let in the light. Large living room with built-in oak bookshelves and storage unit. Sunroom with wall of windows, 1st floor laundry, closet, and cedar closet with door to the garage. 2 car attached garage with stairway to the basement. Bath with oak cabinets. Home has all oak trim. High efficiency furnace and water heater (2007). All Anderson windows for more energy efficiency. Extra insulation under vinyl siding. Look at the utility bills, they are low. Home does have a Michigan basement but it is dry. The 1 acre lot is like a park with extensive gardens, rolling terrain, and a outdoor patio with a pergola. Don’t miss this one, it will go quickly.

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Stunning 3 Bedroom Ranch in Desirable Neighborhood

Dolly OBrien — Sun, 22 Nov 2009 17:54:00 GMT

Stunnning 3 Bedroom Ranch

• 1,617 sq. ft., 2 bath, 3 bdrm single story - MLS® $129,900

Owosso, Shiawassee County - THIS CHARMING HOME WAS BUILT BY THE ORIGINAL OWNER & LOVINGLY MAINTAINED. FOYER W/OPEN DISPLAY DIVIDER. LIVING ROOM W/FIELDSTONE FIREPLACE WALL W/GAS FIREPLACE, 3 DISPLAY SHELVES ON STONEWORK, & DISPLAY CABINET W/OPEN SHELVES AND DOORS. HUGE WINDOWS IN LIVING ROOM LET IN THE SUN. KITCHEN W/CURVED PENINSULA SNACK BAR. LOTS OF CABINET STORAGE. JENN-AIR COOKTOP, RANGE W/OVEN, NEW MICROWAVE, & DISHWASHER REMAIN W/HOME. EATING AREA W/SLIDERS TO SCREENED PORCH THAT OVERLOOKS THE LARGE YARD. GLEAMING HARDWOOD FLOORS THRUOUT HOME. 4 PC COMPARTMENTALIZED BATH W/TILE WAINSCOTING, SHOWER & TUB SURROUND. NEW FLOORING & WALLCOVERINGS IN BATH. DOUBLE SINKS W/LARGE MIRROR & NEW LIGHT BAR. LINEN CLOSET IN BATH. 3 GOOD-SIZED BEDROOMS W/LARGE CLOSETS. ENTIRE HOME HAS BEEN FRESHLY PAINTED INSIDE & OUT. SOFT NEUTRAL COLORS HIGHLIGHT THIS HOME’S FEATURES. LOWER LEVEL HAS REC ROOM W/HALF CIRCLE BAR, WOODBURNING FIREPLACE, POOL TABLE, & WORK AREA. UTILITY AREA HAS HALF BATH, LAUNDRY W/WASHER & DRYER, LOTS OF CABINETS, RANGE, & REFRIGERATOR FOR THOSE FAMILY PARTIES. OVERSIZED HEATED 2 CAR GARAGE W/LOTS OF STORAGE. HOT WATER HEAT FOR THAT STEADY WARMTH. SCREENED PORCH W/ACCESS TO PATIO AREA. GREAT NEIGHBORHOOD. A HOME OF THIS QUALITY & CONDITION ONLY COMES UP ONCE IN A GREAT WHILE, DON’T MISS IT!!

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Secluded 3 Bedroom Ranch on 3.19 Acres

Dolly OBrien — Sun, 22 Nov 2009 15:59:00 GMT

• 1,232 sq. ft., 2 bath, 3 bdrm single story "Modular" - MLS® $112,900

Owosso, Shiawassee County - SECLUDED 3 BEDROOM, 2 BATH RANCH W/PARTIALLY FINISHED LOWER LEVEL ON 3.19 ACRES ON A PRIVATE ROAD. OAK KITCHEN W/LARGE EATING AREA. RANGE, PORTABLE DISHWASHER & REFRIGERATOR INCLUDED. LARGE LIVING ROOM W/GREAT VIEW. 1ST FLOOR MASTER BEDROOM W/ACCESS TO 1/2 BATH & DOUBLE CLOSET. 2 NICE-SIZED BEDROOMS. PARTIALLY FINISHED LOWER LEVEL W/REC ROOM & 3 ADDITIONAL ROOMS. PROPANE HOT WATER HEAT. LARGE DECK OFF DINING AREA W/VIEW OF WOODED AREA. BREEZEWAY BETWEEN HOUSE & 2 CAR GARAGE W/ATTACHED DOG RUN. FRESHLY PAINTED. $1500 FLOORING ALLOWANCE.

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Price Reduced on 6690 Hayner Rd in Conway Township

Dolly OBrien — Fri, 16 Oct 2009 13:22:00 GMT

Conway Township, Livingston County - Announcing a price reduction on 6690 Hayner Rd, a 2,100 sq. ft., 3 bath, 4 bdrm 2 story. Now MLS® $244,900 - $15,000 Price Reduction!!.

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1953 Grand River RD in Shiawassee Township is Sold!

Dolly OBrien — Mon, 31 Aug 2009 22:50:00 GMT

Shiawassee Township, Shiawassee County - The single story at 1953 Grand River RD has been sold.

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1307 Lynn St in Owosso is Sold

Dolly OBrien — Fri, 14 Aug 2009 11:42:00 GMT

Adorable Home on Large Fenced Lot

• 1,216 sq. ft., 1 bath, 2 bdrm single story - MLS® $55,000 - Priced to Sell!!

Owosso, Shiawassee County - ABSOLUTELY DARLING 2 BEDROOM RANCH W/LARGE FENCED BACKYARD. IMMACULATE. GORGEOUS OAK KITCHEN W/EATING AREA. RANGE INCLUDED. SPACIOUS LIVING ROOM W/POSSIBLE SPACE FOR FORMAL DINING AREA. NICE SIZED BEDROOMS. LARGE FAMILY ROOM OPENS ONTO THE PATIO. 1ST FLOOR LAUNDRY. MUCH UPDATING: ROOFING, ELECTRICAL SERVICE, FLOORING, KITCHEN, BATH, & SIDING. DETACHED 16 X 20 ONE CAR GARAGE. GREAT HOME!! GREAT PRICE!!!

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HELP STOP RENTAL FRAUD ON CRAIG'S LIST!!!

Dolly OBrien — Fri, 19 Jun 2009 12:35:00 GMT

I recently posted a blog “Rental Fraud on Craig’s List”. I received numerous emails thanking me for bringing it to their attention. One of them sent me a copy of a similar Craig’s List posting. Here is a copy of her email which included the ad:

This is a message i received from a craigslist ad. This is a scam? The rent is low but I would not have rented the house without looking at it first. The PostingID: 1181039122. I was interested in the house but it did seem kind of odd they would not rent the house before they went to Africa. I'm glad I saw your website. Thanks!

Hello dear,
It's my great pleasure that you are interested in our lovely 3br/1Â½bth home for rent. I am Pastor Hala Malek owner of this home.. Actually we resided in this home before and presently we have packed out due to my transfer as a matter of my profession,We are essentially missionaries dealing with Bible Translation and literacy worldwide.

We will be serving for a long term and now our home is locked up now and presently we have found a new home here which we will be staying for a very long term which might last 5 years in (West Africa) and presently our lovely home is still available for rent for ($800)as first month rent including the utilities like washer,dryer,fireplace and internet access and garage.

While the security deposit fee($600) comes up as the first down payment and move in fee you will make to receive the keys and other neccesary documents you will use in moving into our home,so after the payment the keys and other documents will be send to your full home address via FedEx.So as soon as you receive the keys and documents you will be sending us the first month rent fee.

Moreso,Now that we on Retreat programme over here. Please I want you to note that all we will want is a very honest and caring person,so i will solicit for your absolute understanding and maintenance of this home and want you to treat it as your own,I hope that is taken. The money is not the main problem but i wan t you to keep it tidy always. I also want you to let me have trust in you as i have always stand on my word. Please feel free to call me on my cell phone : 011-234-805-803-9541
Home Address: 2916 Ashford Rd Atlanta, GA 30319
Monthly rent : $800
Move in Fee (Deposit Fee) : $600

SO IF YOU ARE STILL INTERESTED PLEASE GET BACK TO ME WITH THE RENT APPLICATION FORM FILLED.
RENT APPLICATION FORM
1)Your Full Name.............................?
2)Full home address & Phone number.................................?
3)How old are you...............................................?
4)Are you married....................... .. .. .. .. ... ......?
5)How many people will be living in the house...................................?
6)Do you have a car................................?
7)When do you intend to make payment of deposit fee............................................?
8)how long will you be staying ............................................?
9)When are you packing in to our house..............................?
10)Occupation.....................................?
11)Do you work late night........................................?
Pets Policy:Pets Allowed

Looking forward to hear from you with all this details so that i can have it in my file incase of issuing the receipt for you and contacting you.Await your urgent reply so that we can discuss on how to get the document and the keys to you,please we are giving you all this base on trust and sincerity so I won't like you to disappoint us.

Thanks and God Bless
Hala Malek
Phone # : 011-234-805-803-9541

We need to be aware of these scams. If you see aposting like this where it seems too good to be true, it probably is. If youare doing business on Craig’s List, read their guidelines on “Avoiding Scamsand Frauds”. If you suspect fraud, here are the numbers to report it (alsoposted on Craig’s List):

FTC toll free hotline: 877-FTC-HELP (877-382-4357)
FTC online complaint form (http://www.ftc.gov)
Canadian PhoneBusters hotline: 888-495-8501
Internet Fraud Complaint Center (http://www.ic3.gov)
Software Piracy (http://www.siia.net/piracy/report.asp)

One of the simple thingsthat I did was to Google search the phone number that was in the ad. In thatinstance and the one above, it was associated with the Nigerian puppy scam.

As long as this isprofitable to the scammers, it will continue. The only way that it can beslowed down (it will never stop) is for everyone to be aware and to takeaction. If you see it, report it. One of the people that called my sellerreported the fraud to Craig’s List, because when I went to look for theposting, it was already taken down.

Remember the old adage“Fool me once, shame on you. Fool me twice, shame on me.” Be aware. Protectyourselves. Protect others by reporting it. We won’t eliminate the scams andfraud, but we will cut into their profits, making it less desirable to them tocontinue.

Thanks for reading myblog

Dolly O’Brien

FRAUD ON CRAIG'S LIST!!!

Dolly OBrien — Wed, 03 Jun 2009 12:09:00 GMT

I had an incident that happened to one of my sellers this past weekend that I think the rest of the realtors need to know about. As part of my advertising, I upload listings to Craig’s list under housing for sale. My seller received a phone call from a lady that said that her home was listed on Craig’s list for rent. The ad had all of the information from my ad; pictures, address, description, etc. The perpetrator searched the web to get the seller’s name and created an email address using her name at yahoo.com. The background story was that the husband was being relocated to Africa and they needed to rent the house. In addition to the phone call, my seller had two couples show up at her doorstep wanting to rent the house. I also was contacted by an agent in my office, who had a client interested in renting.

Here is the contact information that I received from her buyer client: my contact with him was via email....email address is (I have deleted the email address that he used, as it is my seller’s name) and he sent me phone numbers of: +234-702-963-2643(Nigeria) or 011-234-805-803-9541(this number is the number for a Nigerian puppy scam). He stated he was out of town on business....

My seller contacted the State Police and they believe that it is similar to the email scams that we get all the time about someone dying and needing help getting their inheritance.The only thing that they can do is contact Craig’s list and have them take down the ad.

I intend to check all of my listings on Craig’s list to see if they are listed for rent as well as for sale. I suggest that all of us contact our sellers and let them know that this is happening and that they need to contact us and the police if someone contacts them. It was very unsettling for my seller to have someone show up at her door wanting to rent her home.

THE NEW AND IMPROVED HOME BUYER TAX CREDIT

Dolly OBrien — Fri, 15 May 2009 11:53:00 GMT

The Home Buyer’s Tax Credit has undergone another change for the better. It started out as a $7500 interest free loan for the Home Buyer, repaid at a rate of $502 a year for 15 years. That is the simplified explanation; there were other conditions to that tax credit. Then it morphed into an $8000 Home Buyer Tax Credit, with no repayment. Buy a home, file an amended tax return and you would receive your $8000 credit to do with whatever you wanted. Most of my clients were planning on using the money to do the repairs and upgrades that they would like to do, but did not have the money for.

The latest version enables FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment. According to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

In this declining market, where home buyers are being asked to put more money down on a home, this is a use of our monies that will have an immediate effect. Some people will be able to buy a home NOW. Others will be able to use the money to upgrade and repair their new home. This tax credit is for home buyers that have not owned a home in the last 3 years.

So, if you’ve been thinking about buying a home, but don’t have the required downpayment, this new and improved tax credit is for you. Find that home that you’ve been wanting and use the tax credit as your downpayment.

ARE WE THERE YET?

Dolly OBrien — Sat, 04 Apr 2009 14:29:00 GMT

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In October, I wrote a blog called Doom and Gloom. Just recently, I have received a couple of comments that set me to thinking and blogging.

The first comment was “Did I still believe that it is the right time to buy?” Yes, I do. Interest rates are at an unbelievable low. I thought I did really well a number of years ago when I got 5.375%. I didn’t figure that I would ever refi again. Now I’m waiting and watching, looking for something in the low 4’s. Fixed rate, of course. Another reason for buying is that there is a glut of homes on the market. In Lansing, we have about a 10 month supply of homes. For those of you that are not in the real estate market, that means at the current rate that homes are selling, it will take 10 months to sell everything that is currently on the market. That means that there is a great selection. Over 70% of the homes in Lansing that have sold were either foreclosures or short sales. That means that there are great bargains out there. Someone will buy these homes, probably at a greatly reduced price. Shouldn’t it be you? Whether you are looking for a home to live in or want to invest in rental property, you couldn’t find a better time to buy.

The second comment was that “I had predicted the bottom of the decline in October and then again in March. Eventually, I would get it right.” I didn’t predict anything, but it got me to thinking. Maybe, they believe that you only buy at the bottom of the market. The problem with that type of thinking is that you never know where the bottom is until you are on the other side of it with homes prices going back up. I wish I had a crystal ball that would enable me to see the future. I would have picked the correct numbers for one of the multi-state lotteries.

It’s simple. If you want to own a home, then you need to buy a home. You need to look at everything in your price range plus a little bit higher. Work with an agent that knows the area. One of my buyers just closed on a wonderful home in Fowlerville for $68,000. We had looked at everything in their price range and area. We even drove to Howell (30 minutes away) to look at a house that we stayed in just long enough to look in the basement (4’ of water) and leave. When we found the home in Fowlerville, we wondered what was wrong with it. It had newer vinyl windows, siding, dimensional roof, furnace, beautiful refinished hardwood floors, original trim and doors, appliances, 1.5 baths, great curb appeal and a reasonable kitchen. All for $68,500. Even the paint colors were acceptable. There was nothing wrong with it. It was a GREAT DEAL!!! Most of what we looked at was foreclosures or short sales. And along the way, we saw other great deals; really nice homes at really nice prices. Several of the homes had multiple offers on them.

Values are declining and will continue to decline until the current inventory of foreclosures and short sales are gone. But should you wait until we reach the unknowable bottom. I don’t think so. Could you pay a little more than what you would at the absolute bottom of the market? Possibly. Could you miss that one home that you wanted? Probably. Your choice. My husband and I are buying.

MY HOME WAS DEVALUED 38% BY A DRIVE BY BPO

Dolly OBrien — Wed, 28 Jan 2009 20:45:00 GMT

I am soooo mad!! I just opened my Equity Line statement, and found that the Mortgage Company had lowered my equity line by 65%. I have never been late, have only used it a few times, and had just paid it off. I had used it to buy a HUD home and rehab it. Financed the home and paid off the equity line. So, I called the Mortgage Company to find out what was going on? I was told that it was reduced due to the “Declining Economic Conditions”. They had a BPO done and they had devalued my home by 38%. I asked if it was a drive-by BPO. Yes, it was. The problem is you can’t see my home from the road, and they are not allowed to trespass on the property, so how did they figure out what was here. It has never been listed, as we built it ourselves. So no MLS information. The only source of information would be the assessor and the assessor hasn’t been here since the home it was built.

The Mortgage Company’s formula for the amount of the revised equity line is “Current BPO Value times 80% minus the 1st Mortgage and what ever is left is my Equity Line”. If I want to appeal it, I have to hire an appraiser and submit the appraisal to them and they will look at it and decide from there. Needless to say, I am not happy. I didn’t plan on using it immediately, but that’s not the point. I disagree with drive-by BPOs. You can’t determine value if you don’t see the whole picture (the interior, the upgrades, the land, etc). It isn’t fair to hardworking people to have their property’s value reduced without a fair appraisal. If they had asked, I would have been glad to allow the agent into my house for a true BPO. It isn’t the agent’s fault. It is the mortgage I wasn’t asked and now would have to pay for an appraisal to “possibly” raise the limit. There is no guarantee that even with that, they would change anything.

All of us are facing this loss of value on our homes. It’s a given in these economic times. It becomes more real though, when it is your personal home. I don’t need to sell, so the impact on me is minimal, other than it raised my blood pressure. But for those people who must sell their homes in this market, they are facing this very hard reality. It leaves them angry, in denial, and sometimes difficult to deal with. We have a very fine line that we are treading. Getting the job done (selling the home, even at a loss) and making it as easy as possible on our sellers (especially when they are losing money). The days ahead will be challenging, but we are up to the challenge.

A.I.G. – ARROGANT, IGNOBLE, GREEDY

Dolly OBrien — Wed, 12 Nov 2008 12:40:00 GMT

arrogant

1. Having or displaying a sense of overbearing self-worth or self-importance.

2. Marked by or arising from a feeling or assumption of one's superiority toward others.

ignoble

1. Dishonourable

2. Of low birth or origins

greedy

1. Excessively desirous of acquiring or possessing, especially wishing to possess more than what one needs or deserves.

2. Gluttonous.

That’s what those three letters mean to me. They really P_ _ _ me off. The old axiom “Fool me once, shame on you. Fool me twice, shame on me.” Well, shame on us.

Let’s see, you are in desperate need for money to keep your business running. We give you $150 billion dollars. What do you do? You party hardy on our money!!!

Let’s see, you are in desperate need for money to keep your business running. You ask for an additional $40 billion dollars. What do you do? You party hardy on our money!!! AGAIN!!!

Something’s wrong with this picture. You are arrogant. You believe that you are entitled to our hard earned money. While the rest of us are tightening our belts, hunkering down, saving money wherever we can, you are spending our money like it was water.

The AIG spokesman said the meeting in Phoenix was for independent financial advisors and "was the kind of thing we have to do to run our business." NO, YOU DON’T. Your independent financial advisors have their own personal & business budgets; I bet that they would have understood. They are also helping pay for your bailout with their personal finances.

The Queen of Hearts had the right idea, “Off with their heads”. Maybe, not literally, but definitely figuratively. The management at AIG needs to leave, whether they do it voluntarily or if they are removed. NO GOLDEN PARACHUTES!!! Their actions need to be investigated, just as Enron was. There is something rotten there. I don’t know what it is, but hopefully, we find out and hold those involved responsible for their actions.

TO BLOG OR NOT TO BLOG! THAT IS THE QUESTION!

Dolly OBrien — Tue, 11 Nov 2008 14:55:00 GMT

Definition from webopedia: (n.) Short for Web log, a blog is a Web page that serves as a publicly accessible personal journal for an individual. Typically updated daily, blogs often reflect the personality of the author.

A number of months ago, I tried blogging. I posted a comment on Trulia. The question was “Why is it a good time to buy a house?” I answered with 1) There is a large inventory of homes with many to choose from. 2) Interest rates are low. 3) I don’t remember the third and I can’t look it up because after having my head bit off, I deleted my comment. “That was fun! NOT!!!

So forward to October, when my mentor said, “You need to blog.” Yeah, that was on my list of fun things to do. So, I signed into ActiveRain and posted “Tired of Doom & Gloom!” The response was much better. I received pats on the head and many “Good Job”.

Sometimes a topic just jumps up and says “Blog Me.” Typically, they are topics that you feel passionate about. You are always looking for that type of topic. Sometimes, it’s something that you saw on TV or heard on the radio or read. Then there are the times when nothing says anything to you and you need to rely on statistics or comments on other blogs.

There is a wonderful group of people out there that share your interest in real estate. They support you, critique you (not that I ever needed that), and educate you. You learn so much from other blogs. Hopefully, your blog educates others.

So, go out there and blog!!!