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Ct real estate guy: (September 04, 2009 1:13pm)

To all that asked, I sent the cover page. please give me feedback and let me know how it goes. Anyone else that bumps into this can email me winston@winstonortega.com

Sandy Mortgage Broker: (September 03, 2009 1:31pm)

Nice cover letter for loan mod. Can you please send me that letter too? I am trying to help a bunch of people. Myself included. email approvedmortgages@yahoo.com

SoCal Mortgage Gal: (September 03, 2009 11:58am)

Hey CT Real Estate Guy. Please e-mail your hardship letter, it's just what I need right now! cambridge-jeri@cox.net Thanks

Raz: (September 03, 2009 8:06am)

Raz Ct real estate guy I to would like a copy of that hardship letter please. mingtreemortgage@aol.com

Sharren: (September 03, 2009 7:57am)

CT Mortgage Guy, I also would really appreciate your cover letter. My email is sharrenm@comcast.net

Ga mortgage guy: (September 02, 2009 8:27pm)

Hey CT real estate guy. can you email me that letter please? john@hsoaga.com Thanks.

Ct real estate guy: (September 02, 2009 7:52am)

Hey Norcal Appraiser, if your loan is Freddie or Fannie then you don't have to be late, default just has to be emminent and you must prove hardship, ie interest hike, loss/decline income, expenses went up etc. I have a nice cover letter you can use to nudge the lender alonng I can email you.

Mary Supinger: (September 01, 2009 5:30pm)

The home buyer credit has been a great help to business. Even if it doesn't produce a specific client (though it has), it's really good news to go out to my clients with. And we all need all of the good news we can get.

Broker Joseph Estrada CA: (September 01, 2009 2:22pm)

The tax credit is a great incentive for buyers and it has definitely played a positive role in my business and I know that if this credit were extended it would continue to make a positive impact on my business and income.

NJDLMKR: (September 01, 2009 9:54am)

I've had more people come to me looking for loans but too many times their credit is bad, or the underwriter is too scared of their own shadow and goes beyond the DU requirements.

NJDLMKR: (September 01, 2009 9:54am)

I've had more people come to me looking for loans but too many times their credit is bad, or the underwriter is too scared of their own shadow and goes beyond the DU requirements.

Anonymous: (September 01, 2009 9:41am)

Dustin, not sure what you are implying.... as a REaltor we are doing our OWN loan with you? If so, i would be more than happy to "commit" to using you and signing a agreement as such. If it is our client...well, i'd encourage them to do the same..... by the way do you want 100% service from one Realtor, or one Loan Officer....or a half-as.... attempt from multiple? i'll go with 100%

Anonymous: (September 01, 2009 9:40am)

Dustin, not sure what you are implying.... as a REaltor we are doing our OWN loan with you? If so, i would be more than happy to "commit" to using you and signing a agreement as such. If it is our client...well, i'd encourage them to do the same..... by the way do you want 100% service from one Realtor, or one Loan Officer....or a half-as.... attempt from multiple? i'll go with 100%

Anonymous: (September 01, 2009 9:40am)

Dustin, not sure what you are implying.... as a REaltor we are doing our OWN loan with you? If so, i would be more than happy to "commit" to using you and signing a agreement as such. If it is our client...well, i'd encourage them to do the same..... by the way do you want 100% service from one Realtor, or one Loan Officer....or a half-as.... attempt from multiple? i'll go with 100%

Dustin: (September 01, 2009 7:52am)

I have one problem with regarding the Buyers Agency Agreement. It sounds good in theory but what would a Realtor do if a Loan Officer asked them to sign the same type of document regarding a loan they were going to execute? I dont think many would feel that it was fair to ask them to stay with one LO and I dont think that they would sign it and if they wouldnt, how can they expect their clients to do the same?

Carol: (September 01, 2009 7:00am)

Regarding Buyer's Agency Agreements. Absolutely you should use them! My value as an agent is such that I don't work for free and expect clients to commit to me after the first or second conversation, and certainly after an initial round of showings. If I have demonstrated sufficient value and service they will readily agree to work solely with me. If I haven't - well shame on me!

caltex: (August 31, 2009 11:16pm)

Anonymous:Please explain what it means "Borrower can go straight to the funding source" What do you mean by funding source, i am assuming this would be like BofA?

willnat: (August 31, 2009 10:44pm)

First time home buyer credit currently id =s 75% of my biz, and a large part of the market motivation in Albuquerque, NM.

Anonymous: (August 31, 2009 8:11pm)

Be careful friends! My State Banking Commission interprets my agreement to pay if they go to the funding source I have committed the loan to because they feel it stops the borrower from "shopping"... we seem to be the only industry who cannot get paid for a valuable service. Just this week I get a woman who spends hours in my office and wakes me up at 8:30 on a Sunday -after the bank turns her down then cuts me out using the funder I pre-sell too and I seemingly have no recourse, because after all it is cheaper for her... Let's remember, without me she wouldn't have the info or the funding source. I took contracts in law school and I have to tell you I am amazed that our work is without value....??? I truly believe we are the only industry who cannot enforce the exclusive agreement and as you well know, no fees can be collected or earned until we give up our work product! Good luck friends -

CV Broker: (August 31, 2009 5:01pm)

Thought- Why, when all of the appraisers that are being employed by the AMCs have returned sloppy, inaccurate and just plain crappy appraisals and, assuming that they are all licensed, why then do I have to rebut every darn one of them? Why do the AMCs take MY word for it when I provide 3 or 4 additional comps and point out that a 1200 square foot 30 year old wood sided POS is NOT a comp to my 3100 sq ft stucco, view, 5 year old stunner. Why doesn't the AMC earn the money that they are charging and LOOK at the pathetic excuse for an appraisal to see the obvious mistakes? I don't WANT to be an appraiser! All of you qualified professionals out there - I MISS YOU!

Buyer Broker Agreement Only way to go!: (August 31, 2009 4:44pm)

On the topic of an Exclusive Buyer Broker Contract...I wouldn't put a Buyer in my Car to show them anything unless they signed one. It really isn't just about Commissions Earned, It also is to set a Statute of Limitations for any lawsuit, similar to a Listing Agreement. I've been using them since inception (many years now) and have only had one or two people not agree to sign them after my Buyer Presentation. We just parted ways respectfully and I didn't waste my time. It's just good Business!! And yes I have tested it in Court and won. He who loses pays Atty Fees so it really was "cost effective" and OK feels good to win when your right! No lost Goodwill either because I am consistant in use of the agreement and have a Buyer Presentation laying out the specifics. Try it you'll like it a lot!

Rob in AZ: (August 31, 2009 4:14pm)

Carlotta, OK Cool--Now where did I put that sense of humour? I know it was here somewhere..:-) Have a great night yourself, I enjoyed the chat.

Carlotta: (August 31, 2009 4:08pm)

To Rob in AZ and all others. The reference to Englightened Despotism was just a joke. Don't get all "wee weed up":-) Night night.

loanlady: (August 31, 2009 4:04pm)

I second that emotion Frank! I too am impressed by the quality of thought and the civility. Keep it up people!

Frank Garay: (August 31, 2009 4:01pm)

I just have to say... I'm very impressed with how well behaved everyone is today... man it's usually one of those "enter at your own risk" kinda blogs, but today.. eh, not so much.

Rob in AZ: (August 31, 2009 3:55pm)

Carlotta, sorry here we diverge. I think there us no such thing as "Enlightened Despotism". From Caesar to King John to USSR to Fascist Italy & Spain, it has been offered but not delivered many times. As Lord Acton said "Power corrupts. Absolute power corrupts absolutely". I like the reference of the Gordian Knot. However I do not see any major shift in direction from the old Administration to the new. The last administration tried to solve the crisis by throwing money at it (TARP, H4H, etc.). This administration is trying to solve the crisis by throwing money at it (Tax Credit, Stimulus, etc.). Sorry--I am aware many people agree with you, I mean no disrespect--but I can't see what you are seeing here. And yes Supply & Demand are a major factor in Economics. The $8000 Credit is trying to thwart these Laws by inflating Demand. This can only work for a short time. Thanks.

Lucky Leo: (August 31, 2009 3:48pm)

Enlightened Despotism??? The shimmering mirage to dictatorship. Big Bro loves you. Let govt protect you (but it should stop at the borders), oops we don't have borders we are really Far Lefty Western Europe or Northern Venezuela. Please you can't really mean what you are saying!

Valuequestor: (August 31, 2009 3:34pm)

BRIAN@TBWS: The S&L Crisis back in 1989-1990 caused the biggest loss of small and mid-sized builders in decades. I was a 4th year appraiser at a S&L in Northern Virginia when it hit. We were seized by the RTC (Resolution Trust Corp.) and converted to a Federal Savings Bank. There was so much inventory seized by the Feds and many foreclosures. It caused the surviving builders to scale way back. It took YEARS for the pedulum to swing back the other way and give us a good market again where builders were growing. This was most likely exascerbated by the recession of the early 90's and the very slow recovery. Sound familiar ?? Be careful out there. Remember the old axiom. "Market timing is like trying to catch a falling knife".

Carlotta: (August 31, 2009 3:26pm)

I don’t think the Gov is in cahoots with the Banks and Fat Cats, but can you say “Lobbyist” or “PAC”? The” natural” part of Economics pretty much ends with the principle of Supply & Demand. The current Admin is doing the best any one could possibly do given the mess it was handed. It’s like a Gordian knot. Glad someone with integrity is doing their best to steer us out of a potential calamity of long-lasting global consequence. One of the functions of our government is to protect us, and I think the $8K credit was well intended as are the Loan Modification programs. Sad to say, but there are a lot of stupid people out there who aren’t capable of making good decisions and are easily mislead. Present company excluded, of course. Time for a little Enlightened Despotism, don’t you think :-)

Carlotta: (August 31, 2009 3:22pm)

NorCal. Lenders are now being paid a minimul fee to try and help people out with Mods, but it sounds like you have enough equity that there's also something in it for bank to consider foreclose. And typically, you need some reserves to refi, along with closing costs, prepaids, plus they will want you to prove you have the ability to pay it back. But call Maryann. It's worth a try as long as there are no unreasonable fees upfront w/ no guarantees.

Dorny in Vegas: (August 31, 2009 3:07pm)

Norcal Appraiser - Refinance. At 50% LTV and your credit score, you can lose. You can work it out so that you can skip two payments. The month you sign and the following month. Would that help your financial position? Where's your interest rate now? Conventional has the best rates. Find a good Mortgage person in CA and get a 5% on 30.

TMP: (August 31, 2009 3:07pm)

Norcal appraiser, you don't have to be underwater to qualify for a loan mod. Sounds like you fit the "imminent default" requirement. There are no LTV requirements under the Obama plan guidelines and lenders are paid to modify if your numbers work out. Email me for a prequal maryanne@trustedmortgagepro.com, or call me at 888-309-2119 x 3. I'm in NorCal too and have been helping borrowers with mods for a year.

Peter Hamilton: (August 31, 2009 3:02pm)

Norcal...sorry. You wil either to continue to pay your mortgage (no problem for the lender) or you won't. If you don't, they eventually foreclose, sell, and because of your strong equity position, they will get all their money, and you will pay all the expenses they incur to get repaid. No incentive for lender to modify.

Rob in AZ: (August 31, 2009 2:56pm)

Norcal Appraiser, I doubt you could Modify your loan, I am sorry to say. What would be the Lender's incentive to keep you there? Remember Mods are really for folks who are "underwater" because they (1) can't refi and (2) can't sell. Sorry. I think I would advise you to "Sell" while you can. At least you will get your equity out (based on your statement of the value) and you may be able to rent or buy something more affordable by using some of that equity for a down payment. Best of luck to you!!

NorCal Appraiser: (August 31, 2009 2:41pm)

Hello LO's - How can I get my bank to MOD my loan? At this time I have not missed a payment, but I am within 2 months of reaching a point that I will not have the money to make it. They will not talk MOD as I have not missed any payments. My home is valued at $385,000 and my morgage is just $193,000. Credit scores are 725+, any advice?

PRESTO DINERO EN TX: (August 31, 2009 2:28pm)

First Time Home Buyer Tax Credit: In the state of Texas we have two programs tat allow us to monetize (?) the tax credit to use it for the down payment closing costs and or prepaidS, and let me tell you this money is going like a bat out of hell..... Use the moeny or loose cleitns because soemone else will....

Rob in AZ: (August 31, 2009 1:49pm)

Carlotta, thanks for respectful and well-thought reply. I think you & I could have quite a fun conversation about this! By "natural Economic Laws" I mean, for instance, the Law of Supply or the Law of Demand. These were not passed by any Legislature. They are laws that are Observed (like the Law of Gravity) rather than laws that are created (like the Truth in Lending Act). YES! The current laws of our country are designed to thwart natural Economic laws in order to benefit the rich and the powerful. YES! we have been lied to about Bailouts and Welfare. I agree with you 100% so far. Where I disagree is: the Gov't is in collusion with these banks and Fat Cats. It passes laws to benefit the Fat Cats and disguises these laws so we peons think they will benefit us. The net effect of $8k? Stimulate average Joe/sephine to BORROW MORE MONEY and LINE THE POCKETS OF THE BIG BANKS. I don't believe for one instant that tax credit was about helping the people. Because putting Joe/sephine deeper in debt to buy a still-depreciating asset does not benefit Joe/sephine. They don't want to stop till they bleed the actual worker dry.

t: (August 31, 2009 1:33pm)

Appraiser in NorCal Sell and buy down

Carlotta: (August 31, 2009 1:28pm)

To Rob in AZ: With all due respect, Economic Laws are not "natural". They are manmade. Just like Criminal Laws were made to protect people from those who abuse the principles of a Free Market. Our whole monetary system is set up to benefit the rich, who lead us to believe that our hard earned money is spent on Welfare-type bailouts. The banks made it too easy for people to get themselves in trouble. And the banks are the only ones who make out. Have you noticed what the rates on your credit cards are these days? Sure one bank may go under, but it's gobbled up by another one or bailed out by the Gov (you & me). Read my lips: "The banks and big companies are bailed out, not Joe Six Pack". And forget about the “Trickle-down effect”: It doesn’t work unless you’re close to the nozzle or sucking on it. The aggregate of the $8K tax credit is a mere pittance compared to the Fat Cat BailOuts. If all of the $8K could be used for closing costs and prepaids, just watch how those fees would go up. I've worked for both the Fat Cats and the Gov (including administering a DAP program). Public sector seems to be well intended, but inefficient - yes, in large part due to the overregulation. For the most part, the private sector, esp the fat cats, are efficient, very efficient, but very self-serving. I say keep the money coming for the average Joe/sephines.

Nicey in KRV: (August 31, 2009 1:27pm)

I worked for an old school Broker in So Cal who wanted all LO/Agents to have a signed Buyer/Broker Agreement. Most associates hated it but I did it and never had a problem. Of course, the Buyers/Borrowers who ended up using someone else never had any problems, either. What, the Broker is going to take everyone to court. Yea, right!

HVCC is Lipstick on a Pig: (August 31, 2009 1:27pm)

HVCC kills: The opportunity for many of these potential buyers because after they get into escrow the appraisal kills the deal, and multiple bids on one property should be conditional. Before HVCC days to take the predatory out of transactions loan officers and everyperson envolved in a transaction make a hard fee just like appraisers no commission for your services.

Appraiser in NorCal: (August 31, 2009 1:25pm)

Hello LO's - How can I get my bank to MOD my loan? At this time I have not missed a payment, but I am within 2 months of reaching a point that I will not have the money to make it. They will not talk MOD as I have not missed any payments. My home is valued at $385,000 and my morgage is just $193,000. Credit scores are 725+, any advice?

Appraiser in Central CA: (August 31, 2009 1:20pm)

Central California Market trends (which probably mirror your market): Yes inventory is down, construction is down, demand is increased, agents are reporting multiple offers and market prices have increased. Buyers think we have hit the bottom but 60 minutes has it nailed on the head.... Please follow the link below or type "second wave of foreclosures 60 minutes" in Google. Yes we have a whole second wave of these foreclosures hitting. Sit back and enjoy the ride folks. http://www.cbsnews.com/video/watch/?id=4668112n I think there is good news though. Right now inventory levels are low, and demand is high(er), when the last wave hit, inventory was high and demand was low, this should make this hump easier but a hump is still a hump (wouldn't you agree guys)

CATCAN: (August 31, 2009 1:19pm)

SO duz anyone know if the Fat Cats at B of A will modify ANY OF their CWBC neg equity loans on the books? From the dish I've read the H4H you need EQUITY. WHAT about half of us Southern Californians with Neg Equity??

Old SoCal RE Broker: (August 31, 2009 1:11pm)

Brian, Frank, or Anyone else out there...... Wasn't the ORIGINAL program an $8K Tax CREDIT that *COULD* be monetized......IF the lenders were willing to file all the paper work with the Feds for a max fee of $200 dollars that could be pssed through to the borrowers ??? Thanx, Gregg

caltex: (August 31, 2009 1:01pm)

In the olden FHA days all you needed was a crybaby letter, fake rental ratings, stupid P & L to show savings ability at home or a gift???. Credit was not an issue. I hope we have gotten rid of most of those loan officers with the help of their realtors. The job economy in my area is not for high income wage earners that have the ability to save. FHA has improved guidelines to show buyers credit ability Credit is a major challage today. Our job is educating these buyers for down the road. They should not have a loan if they have not proven the ability to make payments on time. It is not our job on how to tell them how to get a gift??

two-timer hater: (August 31, 2009 12:57pm)

In regards to the buyer's representation agreement...at least in TX you technically represent the seller until your clients have signed a representation agreement...you must act in the sellers best interest and can not do a lot of things for the buyer such as giving data that might negotiate a better price for them, etc. Also, you can not enforce your buyer's rep in court if a buyer has signed a buyer's rep with another agent after you...the later dated agreement wins...so I'm told

Realtyasis.com Salt Lake City: (August 31, 2009 12:45pm)

Buyer Brokerage Agreement. Yes it is enforceable and most states require the agency agreement to be signed at the first substantial meeting. Agency is the other part of the buyer brokerage agreement. I give my clients 1/3 of my commission as a cash rebate to incentize the buyer into signing a unilateral BB agreement. rebates are allowed in UT. Tax credit is making a difference that is why the # are up and will clime in new home sales until December and it will die and in February when all hell is breaking loose in the economy because foreclosures are up and prices are dropping again nationally. The talking heads including Barny Frank in Washington will rally to do a new first time home buyers incentive.

loanagent: (August 31, 2009 12:43pm)

Who is buying the $8k tax credits? client wants to use if for closing cost. Is there anyone out there doing this? Can anyone help?

HVCCphobia: (August 31, 2009 12:32pm)

Once upon a time in a land far away FHA had programs that allowed you to not only get in for $99 down but your payments were capped at $99 a month. I bought one of those. Within 2 years I was the only person living in a 500+ home subdivision. All the other homes were boarded up and empty. FHA and all lenders learned that Buyers need to have something to lose to keep them from just walking away. If you doubt it look up the foreclosure rates on 3.5% DP vs 5%. Then compare 5% to 10%. The last time I looked 3.5% was double that of 5% and 5% was double that of 10%.

Tobby: (August 31, 2009 12:32pm)

Although the $8,000 tax credit ends November 30, the effective deadline is probably around the first of October for new applications. Keep in mind that to get the tax credit one needs to be closed (out of escrow) by November 30. Pipelines of 45 to 60 days are not uncommon.

Tobby: (August 31, 2009 12:29pm)

It's not the few thousand dollars of down payment that determine the risk of the FHA loan. It is the capability of the borrower to be disciplined enough to save up the 3.5% in the first place. This is why the old DAP scams were outlawed in the first place. The actuarials are clear on this. And keep in mind that FHA was created for lower quality credit borrowers with no other alternatives. It was not created to be a dumping ground because regular credit markets seized up.

St Pauly Girl: (August 31, 2009 12:16pm)

Good point about 100% FHA loan- the tax credit used for down payment & DPA unacceptable....$15K tax credit idea is nuts! No more tax $ should be spent on this crap. If you really want to see some market turn around, lets just give $15K to anyone that completes real estate transaction (refi, seller, buyer)...have it retro active for 1/1/09. Wonder what those extra dollars would do in the retail sector?

caltex: (August 31, 2009 12:11pm)

FHA should have 100% financing. Is someone really going to keep their home because of a 3 1/2 (Gift??) downpayment. Increase upfront to 2% since FHA has always been in black. Have 2% tax credit. When they can prove ability to pay rent and handle credit they get a house based on their ratios. DAP is a farce for harder qualifying, not all lenders used it, higher rates, restrictions, more Fees and longer time delays.

caltex: (August 31, 2009 12:10pm)

FHA should have 100% financing. Is someone really going to keep their home because of a 3 1/2 (Gift??) downpayment. Increase upfront to 2% since FHA has always been in black. Have 2% tax credit. When they can prove ability to pay rent and handle credit they get a house based on their ratios. DAP is a farce for harder qualifying, not all lenders used it, higher rates, restrictions, more Fees and longer time delays.

Nuke 'em 'til they Glow: (August 31, 2009 12:10pm)

HVCCphobia - HUD Says that the Tax credit CANNOT be use for Down payment. The same laws that killed Nehemiah prevent this. You can use it for down payment IN EXCESS of the 3.5%. A lot of false advertising and in the end a LOT of mortgage professionals will lose their license over it in the coming year.

HVCCphobia: (August 31, 2009 11:43am)

Here's the website for the Texas Tax Credit loan program http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm They tell me it takes 20 days approve the borrower for the loan.

HVCCphobia: (August 31, 2009 11:23am)

I tuned in at the right time. I'm in Texas and I've been told repeatedly you can't use the Tax credit for downpayment or closing costs so I'd be very interested in hearing how you're doing it.

Kris A: (August 31, 2009 11:23am)

To mar: the APR includes all lender fees except the appraisal and credit report, plus the escrow fee.

Dorny in Vegas: (August 31, 2009 11:22am)

We all like to create a sense of urgency. This is the opprotunity (and challenge) we will enjoy until the end of November. Now that the government is in the car business, they'll catch on to the "rebate" timing issue before the drop in sales. The "recovery" propaganda will give way to reality and the $15K credit will happen. My question is: Who has been able to successfully obtain a bridge loan for their Client given HUD's restriction on "reasonable" fees? Not to mention the fact that the credit is tied to their total tax liability and (they) are not guaranteed the full credit.

Kris A: (August 31, 2009 11:21am)

Tim E in Southern California, mirrors what I am seeing here in Sonoma County. I have pre-approved so many first time home buyers. It is wonderful, but they all will be doing FHA loans. They do not need the $8000 credit to close. That is the gravy for filing taxes next year. But, as we all know, the sellers are accepting the cash buyers and others with larger down payments. It does not matter if the client is offering more money. Cash is king. How do FHA buyers compete?

Hey Philly Rat: (August 31, 2009 11:11am)

Hey Phillyrat! What a great idea! Hahahahah... wouldn't that be cool.. Frank

Tony P.: (August 31, 2009 11:09am)

A Buyer/Broker agreement is appropriate when it looks like you're going to put in a lot of work and time. Usually, I know my clients well enough to trust them just as they trust me so for normal transactions, I never bother with a written agreement with my buyers. But, I did have a situation 10 years ago where I was working with a client who was looking for a million dollar apartment building and I spent weeks looking and previewing for him until I found what was the ideal property about 50 miles away. I called the listing agent and was told that my buyer had already made an offer on the place with another agent from near that area. The person was a friend of my father's up until then. My father had referred him to me and told him to trust his man who he's known for years. So, against my instincts, I let the idea of a buyer's contact go and ended up losing a lot of money I could have made with productive clients. By the way, the offer with the other agent was a "bad one" according to the listing agent and it was rejected. The client was on a 1031 exchange dealine and failed to get a property in time and had to pay tens of thousands in cap gains taxes!!!

Broker in RIC: (August 31, 2009 11:08am)

The credit has helped. Buyers know about it, and it has provided the call to action that they needed in some cases. Now if they can pass the 15K for ALL buyers, not just 1st time buyers, that would be really strong. So many people want to move up but don't want to take the loss on their current property. A 15K credit (or even deduction for that matter) would make it a lot less painful and may just be what they would need to pull the trigger.

Phillyrat: (August 31, 2009 11:07am)

Hey, how about a borrower exclusive contract. How many times have we (mortgage professinals) been asked for a GFE by a borrower only to have the borrower share this information with a competitor who lowers a fee by a few dollars to capture the transaction. There is no loyalty so it is difficult to reason with a borrower because most of the time they are blindsided by fees, rate but don't consider service levels, ease of transaction and delivery of the loan as disclosed.

Rick B.: (August 31, 2009 11:06am)

The tax credit as implemented is about as bad as last years loan. What needs to be done is to give this credit to all buyers so other properties will move and not just the foreclosures and short sale properties. Give some insentive to those who want to move up so we can sell all these non-bank owned properties. Hey is it true that the $4,500 for the car purchases are taxable income?

Troy S: (August 31, 2009 10:36am)

The tax credit has provided a much needed lift. Most of the homes being bought are short sales and foreclosures at this point. A well thought out continuation would need to encourage move ups as well- maybe 5% of the purchase price up to $15,000 for all buyers who intend on making this home the primary residence. Must sell current home to qualify. The money may be better spent investing in a better MI for FHA to allow seller contibutions toards down payments again.

Tri-Dude: (August 31, 2009 10:29am)

Please don't send me anymore updates. Thanks, Tri-Dude

Tim E: (August 31, 2009 10:28am)

The tax credit has not effected my business at all...not one used. Most buyers in SoCal are finding there are no homes to purchase unless they are walk on water buyers with huge downs and the high bidder...that's usually not a first time buyer. We are hearing that there are 10-30 offers on any property and most are REO properties with selling agents often not having the courtesy to communicate with the buyers agent who sent the offer....one of my agents commented she sent on offer 60-90 days ago and the only communications they've received from the listing agent is "don't call us, we'll let you know if your offer was accepted". Most FHA offers are being rejected immediately no matter what the price. In my opinion these agents who don't communicate should lose their license.

nicktx: (August 31, 2009 10:23am)

robttmg, BBT abd Citi are both allowing the monetization for down payment. TDHCA is the state agency that is running it.

brian tbws: (August 31, 2009 10:22am)

Hi Atlas, That wasnt a cheap shot & it wasnt rehearsed. I thought "it sure sounds like frank has someone in mind." Truth be told, if it was a cheap shot it was not intended and I don't know who he could have been thinking of. HOWEVER, there are many rate alert type products out there but those will cost you, up to, hundreds per month and many dont have direct bond feeds like rate alert. So we do have the fastest most accurate cost effective and usable variety on the market. We don't need to stoop with that type of product. Thanks for your post and I appreciate your input. OH check out rate alert. Its great.

robttmg: (August 31, 2009 10:17am)

Lucky in Texas, Who is yur Texas lender who is allowing the Tax Credit to be used as a down payment? What is name of the state program or agecy that is advancing money untill the tax credit is recieved?

B in Vegas: (August 31, 2009 10:17am)

With the deadline approaching for the Tax Credit it would be great to see the "trigger" date tied to the acceptance of the contract (i.e. by 11/30/2009), instead of recording date. It's just too tough to guarantee an on time closing with HVCC, tougher underwriting and the new TIL laws creating more delays.

St Pauly Girl: (August 31, 2009 10:08am)

I'd like to see the DPA programs (seller funded) to come back.- (i.e. Gensis, etc.) I'm a bit tired of having our tax dollars fund a buyer tax credit when the DPA programs worked so nicely. Any thoughts?

Rob in AZ: (August 31, 2009 10:05am)

Carlotta, I have to respectfully disagree with a portion of what you are saying. I agree that this $8k is setting up another set of homeowners to fail. I disagree that more money or additional regulation can cure the problem--which was too much money in the mortgage/real estate arena to begin with. The #1 proven best regulator is the free market. If the people who pay for things are the same people who use them, they will act in their own best self-interests. When we take away the "pain" side of the equation we get bigger and bigger "bailouts", until either the people or the Lenders (people buying Treasuries) say "enough". Then we will see catastrophic failure. Every one of these "fixes" is an attempt to defeat natural Economic Laws. Our leaders do not seem to get that we can defeat Economic Laws--like we can Physical Laws--only for the short-term. You can't keep a plane airborne forever; eventually it will run out of fuel and crash to the ground. Same with an Economy: you can pump it up in the short-term, eventually it will crash.

eddie: (August 31, 2009 9:47am)

Any gains I've have due to the tax credit has probably been offset by job market worries. Many potential buyers are waiting to see if they'll even have a job by the end of the year.

Carlotta: (August 31, 2009 9:42am)

$8K Tax credit has helped young people get into market in my area. But most of the homes they are buying are distressed foreclosed properties. I wonder what happened to the people who lost their homes? Oh yes, they are "Renters" now. They weren't "Upside-Down". They were "Inside-Out" as in contents of their home on the streets. So very few people are "Moving-up". They are "Moving out" as Billy Joel would say. Sounds like Musical Houses to me. Let's see, you kick people out of their house, let it become abandoned and run down, then you sell it to some poor unsuspecting first-time homebuyer through an FHA loan with 3.5% down. And next year, if values have dropped another 5 to 15%, don't you think they may be "Upside-down"? I think it's the mid to high end properties that are going to come down considerably more until they stop the foreclosures. All that said, I hope the Administration does keep pumping money into the housing economy...... Like $15K for all homebuyers, while helping deserving people stay in their homes through loan modification. We've got to break this log jam. Hey, it's only money! They screwed up though on the Tarp infusion, trusting that the fat cats who run the banks and Wall Street would put it back into the economy instead of their own pockets. Hopefully, they have learned and the future infusions will have more controls on them. Unfortunately, you need some regulations or people will take advantage of others. It's human nature :-( Plus we need jobs, jobs! What a mess

mar: (August 31, 2009 9:41am)

Someone please send me what's in the APR fee's. Every investor sems to be differant.

Pellicansbutt: (August 31, 2009 9:40am)

I am a LMB in SW Florida. The $8K "bridge loan" is being handled by the county SHIP agency. Collier County has agreed to review and vote on the program in September for 1st funding sometime in October!!! That's not helping my August soon to be September) closing at all. Another example of our Gov't. APPEARING to be helpful.

KCLO: (August 31, 2009 9:36am)

Here is some good information on the FTHB upfront down payment. It's only available in a few states. http://www.bankrate.com/finance/mortgages/use-first-time-homebuyer-s-credit-upfront-2.aspx Go to your State Housing Development Commission web site to see how it is handled.

NettaMI: (August 31, 2009 9:35am)

It is hard to say of this tax credit made a difference or not in Michigan. We have home for as low as $2000. We just bought my mom a nice home for $14,900 (814 sqft + full basement) Most of the foreclosures in this state sell for $2000 - $50,000

Rob in AZ: (August 31, 2009 9:10am)

RE: $8000 Tax Credit. I think if you want to see the effect of this program, watch auto sales now that the $4500 "Cash for Clunkers" is over (I expect them to drop off a cliff). Same program, different scale. I would wager we will see the $8000 disappear, the resale market will be a ghost town for 30-60 days, & then Congress will pass some new "emergency stimulus" involving a bigger tax credit like the one Brian describes. Thx, keep up the good work!

Tri-Dude: (August 31, 2009 9:01am)

Home Tax Credit. The main question is can I use this for my down payment? So after I tell them no, the next question is do you have a family member that will loan you the money? When they find out that this is a real gov. program in every case so far the relitive has said yes. Myself included when we put a deal together for my own son. Now we are just waiting for the gov send back the money. This program is responsible for increasing my business over the last 2 months.

Ohio Realtor: (August 31, 2009 9:01am)

KY LO is right. In Ohio we have also seen the 50k to 150k price range move well for first time buyers taking advantage of the rebate program. I also agree that with the closure of TBW we need an industry player who will work with all aspects of FHA, not just 203b. Additionally, with the loss of TBW we have no reasonable outlet for manufactured housing loans. HUD significantly reduced the marketability of manufactured housing when TBW was closed. I expect HUD to see increased defaults on their loans were manufactured housing is the security for the loan. Buyers are unable to finance them and consequently sellers can't sell so many are going for land contracts. We all know the success rate of that arrangement.

Tri-Dude: (August 31, 2009 9:01am)

Home Tax Credit. The main question is can I use this for my down payment? So after I tell them no, the next question is do you have a family member that will loan you the money? When they find out that this is a real gov. program in every case so far the relitive has said yes. Myself included when we put a deal together for my own son. Now we are just waiting for the gov send back the money. This program is responsible for increasing my business over the last 2 months.

MortAm: (August 31, 2009 9:00am)

Dr Horton in San Antonio is buying up a bunch of land, trying to keep up w/ the Centex/Pulte merge???

ej: (August 31, 2009 8:51am)

Loan mods = FUBAR. I am sitting here hours before close of business awaiting news from my mortgage company whether they will grant me a modification or foreclose tomorrow. How do they expect me to get the money to the attorney in certified funds if they won't even give me a dollar amount - other than the full amount plus their $5000 in fees. Also, during the income analysis part - they didn't even know how to read tax returns for self employed person and only used social security and pension. They admitted they didn't know how to calculate income for a self employed person. What a bunch of morons! and these are the ones making decisions affecting thousands of lives daily.

KY LO: (August 31, 2009 8:47am)

The tax credit has helped in Louisville, Ky with the average home prices in the 50K to 150K range. However, the old DPA programs that were available IE: Nehemiah, were actually putting more buyers into homes. If our government is serious about this recovery in housing, they will stop with the hand outs and let the market recover on its own. Allow the DPA's back, let the lenders enforce a stricter standard for the buyers and get out of the way. Another area that needs attention is the 203K Rehab program. With the flood of foreclosed or shortsale properties that we are seeing, there are not enough lenders willing to use this program. Taylor Bean was the most used for the 203K in our area, but now it is difficult to find a lender that will use the program. Buyers are out there and wanting these homes but are having trouble with either the down payment and/or a mortgage that will allow them to get in the home to rehab them. Again, let the DPA's back in the picture for the owner occupied buyers and watch the system work and recover. Free markets work if left alone and allowed to succeed or fail on their own. In the words of Ronald Regan, "Government is not the answer to the problem, Government is the problem."

Anonymous: (August 31, 2009 8:47am)

This credit has been helpfull giving homes to people who were using welfare. if we just drug test the remaining welfare recipients, we will have lots of money after we drop the weight.

Wilbecks: (August 31, 2009 8:38am)

I've just had 2 uncomfortable experiences with this buyer broker form, both on my listings. Another agent brought me an offer, and then days later I get a call from another agent saying "that was my customer", I have an agreement with them. It seems in both these cases the buyer didn't fully understand the agreement, and now there is lots of bad will between, agent and past client. I don't think it's worth it. If a marriage license can't keep people together, a buyers' broker agreement isn't going to either. Just a thought.

Hey Atlas...: (August 31, 2009 8:35am)

Geez... why does everyone take everything so seriously around here... let's lighten up... Are we no longer allowed to have fun and pick at people once in a while - Man. --Frank

CV Broker: (August 31, 2009 8:34am)

Citi seemed to be one of the more progressive lenders by getting out front of it months ago. My rental loan was reduced to 4% - not late - didn't ask for it. However, National City? Eight months and counting.. my payments have been in a 'suspense' account making it look like I own 20K when I've been paying. Only a formal complaint to the Officer of Currency got them to even return a phone call. That was three weeks ago and still no action. Really, though, this whole thing is a cluster and a crap shoot. Some of the folks act like it's winning the lottery (it is) while others who deserve help who have been paying get bupkis.

Atlas: (August 31, 2009 8:31am)

Bit of a cheap shot on the unnamed "mortgage broker turned bond analyst" guys. Something tells me you wouldn't even have your "Rate Alert" program if you weren't following his lead.

Let's get ready to rumble!: (August 31, 2009 8:20am)

Citi is a mess I'm modifying Cit loans right now and they won't even let the borrowers pay on the mortgages once they are past due a few payments and the different dept don't know what they other is doing confusing the borrowers. This is after they now are using a 3rd party to help themget through this log jam. By the way most of the mods we have done recently have been under a trail mod for 3-6 months to make sure the borrowers will pay the new terms this includes Ombama plan and the standard mods we did before Ombama got involved.

Shoshana: (August 31, 2009 8:14am)

I know the tax credit can be advanced. But, how can it be prefunded? I am in AZ.

MD Realtor: (August 31, 2009 8:14am)

As far as the issue of Buyer Brokerage agreements and their enforceability, that will vary from state to state. In Maryland, they are enforceable, even when the listing broker is involved, since the listing broker cannot represent the buyer in our state. According to our Buyer Broker Agreement, a buyer who breaks the agreement can be bound to pay a commission to the broker holding the agreement IF the agent showed them the property that they wrote and settled a contract on. Every state has their own laws, so be sure you understand the laws governing you in your state.

steve kappre: (August 31, 2009 8:10am)

He guys - I've utilized the tax credit upfront in what is known as a "tax credit prefund" - done through NJ state Finance Agency - so in my case my clients ARE using this $$ upfront - and some of my current transactions depend on it.

Indiana Mort Broker: (August 31, 2009 8:03am)

New home builder business going to suffer going forward. Most builders having difficulty getting financing. All the lenders I work with have done away with construction finanacing.

MortgageMan: (August 31, 2009 7:59am)

The tax credit has gotten the Realtors business, but getting those who are looking has been very hard. The more stable and approvable (is that a word?) borrowers are staying put as they seem to fear the future economy.

Sunshine on the SunCoast: (August 31, 2009 7:55am)

I'm located on the west coast of Florida. I checked w/ our local government this AM that is offering $8,000 DPA to be repd within 10 days of receipt of tax refund...they currently have a grand total of 2 applications.

Lucky in Texas: (August 31, 2009 7:42am)

The tax credit has realy helped the market I work in. We help almost nothing but first time buyers in the Mid level income area, just to high for a government grant but not enought to save for a down payment , but can afford the monthly payment, in most cases its less than/ or equal to their rent. We also have a lender that allows the Tax Credit to be used for their down payment. The state of Texas will give them an advance/loan until the money comes from the government. I hope they extend it! Its good for the middle class and needed.

ARMtgGal: (August 31, 2009 7:33am)

Granted, I live in the middle of nowhere Arkansas....but the tax credit has had little impact on our market. I don't see any point in wasting taxpayer dollars extending it. I think a straight stimulus check, in an amount high enough to make people want to go out and spend it, would be a better alternative.