The debates are done, the election is over, and on January 20, 2009, Barack Obama will be inaugurated as President of the United States. No matter where you fall in the political spectrum, no one knows for sure exactly what this will mean to the future of our country. With this in mind, let's put all politics aside, and take a closer look at Obama's plan for our future. And since a home is still the biggest, most important investment you'll ever make, we'll focus the limited space of this short article on Obama's basic housing measures.
More Economic Stimulus – Since trouble in the economy won't wait until January 20th, plans for another economic stimulus package are already in the works, so we might even see this happen, in one form or another, before Obama takes office.
Obama has also discussed a housing stimulus as well, to stem the tide of foreclosures, including a temporary 90–day freeze on foreclosures, as well as measures to address the demand side of the housing issue. This package includes $25 billion in state fiscal relief, which Mortgage Law Central says will help avoid "painful property tax increases."
Obama also wants to "aggressively and comprehensively" implement the recently–passed rescue plan and the Hope for Homeowners Act. This means the Treasury, HUD, Fannie Mae and Freddie Mac, and all of the banks and loan servicers who benefit from the rescue bill will continue to coordinate broad mortgage restructurings and loan modifications for struggling homeowners. No one knows for sure exactly how this will be implemented or what it even looks like yet, but we'll keep you updated as the details are released.
Reformed Bankruptcy Laws – Obama has promised to repeal the 2005 bankruptcy bill. A controversial measure, this will allow judges to alter mortgage terms during a bankruptcy, providing more protection for struggling homeowners.
New Mortgage Interest Tax Credit – Obama is expected to create a 10% universal mortgage interest credit for those who don't currently itemize. This means about $500 in savings for 10 million American homeowners.
Protection Against Mortgage Fraud and Predatory Lending – During the campaign, Obama blamed the financial crisis on lax government regulations, so look for tougher regulations, new criminal penalties for mortgage fraud violators, more funding for enforcement programs, more detailed loan disclosure laws, new counseling programs and other consumer protections, including a new Home Obligation Made Explicit (HOME) score (kind of like a new APR calculation) to help borrowers better understand and compare mortgage costs during the mortgage process.
This will go a long way in protecting new home buyers from the opportunists that have given good mortgage professionals like us a bad name in the last few years. And since so much of our business depends on referrals from satisfied clients, the good news is a lot of these people are now out of business. We hope that any new measures introduced by the Obama administration will help keep a new breed of copycats from invading our industry as the real estate market begins to change for the better in 2009 and beyond. From now until the end of the year, you can expect volatility to continue in the financial and credit markets. This means mortgage rates, too, so if you or anyone you know is looking to buy or refinance a home, give us a call. We monitor the performance of mortgage–backed securities on a daily basis, which allows our clients to capitalize on changes that will help lock in the best rate for their individual goals and needs. Also, if you'd like to discuss any of these or other changes that could affect your mortgage, don't hesitate to give us a call.
If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.
Lisa Warren
Southlake Branch Manager
Silver Oak Mortgage
Phone: (817) 410-2518
Fax: (817) 410-2519
lwarren@somlp.com
www.silveroakmortgagelp.com
Monday, November 24, 2008
Sunday, November 23, 2008
Buying? Selling? What to look for in a Real Estate Agent
By BRENDEL HIGHTOWER - Detroit Free Press
When picking a real estate agent, think of yourself as an employer hiring for your company: Require a good resume, check references and do a thorough interview.
As CEO, you must recruit the best talent. Buying or selling a house is just like a business deal - and you need the right lieutenant to get the job done.
Agents should be familiar with neighborhoods and selling trends. You want someone who will go above and beyond to make things happen in this slow real estate market.
One of the best ways to find a good agent is to ask friends and family. They often can provide names of people they have worked with and liked. Checking newspaper ads, going to open houses and writing down agent names listed on For Sale signs in your neighborhood (especially ones that say "Sold") also might help you locate agents.
But the process doesn't stop there. Once you have a list of names, be sure to interview the candidates so you can determine which one will best meet your needs.
"The purpose of the interview is to feel comfortable, to know it's a person that you can work with and trust," said Pat Vredevoogd of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., and the 2007 president of the National Association of Realtors.
Vredevoogd suggests that potential buyers and sellers ask agents about advanced real estate classes they might have taken. That can indicate how experienced and dedicated the agent is.
"This is a huge investment, and you want to be sure they have all the knowledge to protect you," Vredevoogd said.
Jessica Veitch and her husband, Jason, worked with three agents before settling on Chris Courtney of Remerica Hometown in Plymouth, Mich.
They closed on a 837-square-foot, three-bedroom ranch in Berkley, Mich., on Friday.
"He took time with us and was willing to work with us," Veitch said. "He didn't care that we were not looking for a real expensive house."
Here are other questions to consider:- How many years has the agent been on the job? You may prefer someone who has been selling homes for years. Or you might prefer the fresh perspective and energy of someone newer to the field. Ask for a resume and references.
- How compatible are you? Don't underestimate the importance of personality. Buying or selling a house is often stressful and emotionally challenging. Comfort and trust are key.
- Does the agent know the neighborhood? Local knowledge is crucial.
- What level of customer care will you receive? An agent will be your partner in a huge financial undertaking, so you want to choose someone who is always ready, willing and available. The communication needs to stay open and your phone calls need to be returned quickly.
- For sellers, what is the marketing plan for your home? Ask for a list of ways the agent plans to market and advertise your house. That can include print ads, Internet marketing, flyers, postcards and direct mail. Ask for samples to see the quality and professionalism of the presentation.
- What about commission? Traditionally, a seller pays around 6 percent in commissions; 3 percent goes to the seller's agent and 3 percent to the buyer's agent. Commissions, however, can be negotiated.
- Does the agent work part-time or full time? Chris Courtney said a full-time agent can stay on top of changes as they come about and can be more aggressive.
"If we don't sell, we don't eat," Courtney said.
When picking a real estate agent, think of yourself as an employer hiring for your company: Require a good resume, check references and do a thorough interview.
As CEO, you must recruit the best talent. Buying or selling a house is just like a business deal - and you need the right lieutenant to get the job done.
Agents should be familiar with neighborhoods and selling trends. You want someone who will go above and beyond to make things happen in this slow real estate market.
One of the best ways to find a good agent is to ask friends and family. They often can provide names of people they have worked with and liked. Checking newspaper ads, going to open houses and writing down agent names listed on For Sale signs in your neighborhood (especially ones that say "Sold") also might help you locate agents.
But the process doesn't stop there. Once you have a list of names, be sure to interview the candidates so you can determine which one will best meet your needs.
"The purpose of the interview is to feel comfortable, to know it's a person that you can work with and trust," said Pat Vredevoogd of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., and the 2007 president of the National Association of Realtors.
Vredevoogd suggests that potential buyers and sellers ask agents about advanced real estate classes they might have taken. That can indicate how experienced and dedicated the agent is.
"This is a huge investment, and you want to be sure they have all the knowledge to protect you," Vredevoogd said.
Jessica Veitch and her husband, Jason, worked with three agents before settling on Chris Courtney of Remerica Hometown in Plymouth, Mich.
They closed on a 837-square-foot, three-bedroom ranch in Berkley, Mich., on Friday.
"He took time with us and was willing to work with us," Veitch said. "He didn't care that we were not looking for a real expensive house."
Here are other questions to consider:- How many years has the agent been on the job? You may prefer someone who has been selling homes for years. Or you might prefer the fresh perspective and energy of someone newer to the field. Ask for a resume and references.
- How compatible are you? Don't underestimate the importance of personality. Buying or selling a house is often stressful and emotionally challenging. Comfort and trust are key.
- Does the agent know the neighborhood? Local knowledge is crucial.
- What level of customer care will you receive? An agent will be your partner in a huge financial undertaking, so you want to choose someone who is always ready, willing and available. The communication needs to stay open and your phone calls need to be returned quickly.
- For sellers, what is the marketing plan for your home? Ask for a list of ways the agent plans to market and advertise your house. That can include print ads, Internet marketing, flyers, postcards and direct mail. Ask for samples to see the quality and professionalism of the presentation.
- What about commission? Traditionally, a seller pays around 6 percent in commissions; 3 percent goes to the seller's agent and 3 percent to the buyer's agent. Commissions, however, can be negotiated.
- Does the agent work part-time or full time? Chris Courtney said a full-time agent can stay on top of changes as they come about and can be more aggressive.
"If we don't sell, we don't eat," Courtney said.
Saturday, November 22, 2008
DATES TO REMEMBER
Holiday Happenings in the area.....
Nov. 14 - Jan. 3 - ICE! and Lone Star Christmas (Grapevine)
Nov. 22 - Jan. 4 - The Trains at North Park (Dallas)
Nov. 28 - Jan. 4 - Holiday in the Park (Six Flags in Arlington)
Saturday, Nov. 22 - 3:00 to 9:00 pm
Home For the Holidays (Southlake Town Square)
Tree lighting at 6:30 pm
Saturday, Nov. 22 - 24 - www.SouthlakeFestivalofTrees.com
Friday, Nov. 28 - FW Sundance Square
2:00 to 5:30 pm - Holiday Fun Zone
6:00 to 8:00 pm - Parade of Lights and Tree Lighting
Nov. 29 - Dec. 21 - Snowflakes, Sugarplums, and SANTA! (Fort Worth)
Saturday, Nov. 29 - 6:00 to 8:00 pm
Hurst Annual Tree Lighting Spectacular
Monday, Dec. 1 - 7:00 pm
Historic downtown Grapevine Carol of Lights
Thursday, Dec. 4 - 7:00 pm
Historic downtown Grapevine Parade of Lights
Friday, Dec. 5 - 6:00 to 9:30 pm
Holly Days at Keller Town Center
Saturday, Dec. 6 - 10:00 am
Neiman Marcus Adolphus Children’s Parade Dallas
Saturday, Dec. 6 - 4:00 to 8:00 pm
NRH Night of Holiday Magic at NRH20 Family Waterpark
Saturday, Dec. 6 - dusk
Twinkle Light Parade on Grapevine Lake
Happy Holidays!!!
Nov. 14 - Jan. 3 - ICE! and Lone Star Christmas (Grapevine)
Nov. 22 - Jan. 4 - The Trains at North Park (Dallas)
Nov. 28 - Jan. 4 - Holiday in the Park (Six Flags in Arlington)
Saturday, Nov. 22 - 3:00 to 9:00 pm
Home For the Holidays (Southlake Town Square)
Tree lighting at 6:30 pm
Saturday, Nov. 22 - 24 - www.SouthlakeFestivalofTrees.com
Friday, Nov. 28 - FW Sundance Square
2:00 to 5:30 pm - Holiday Fun Zone
6:00 to 8:00 pm - Parade of Lights and Tree Lighting
Nov. 29 - Dec. 21 - Snowflakes, Sugarplums, and SANTA! (Fort Worth)
Saturday, Nov. 29 - 6:00 to 8:00 pm
Hurst Annual Tree Lighting Spectacular
Monday, Dec. 1 - 7:00 pm
Historic downtown Grapevine Carol of Lights
Thursday, Dec. 4 - 7:00 pm
Historic downtown Grapevine Parade of Lights
Friday, Dec. 5 - 6:00 to 9:30 pm
Holly Days at Keller Town Center
Saturday, Dec. 6 - 10:00 am
Neiman Marcus Adolphus Children’s Parade Dallas
Saturday, Dec. 6 - 4:00 to 8:00 pm
NRH Night of Holiday Magic at NRH20 Family Waterpark
Saturday, Dec. 6 - dusk
Twinkle Light Parade on Grapevine Lake
Happy Holidays!!!
Friday, November 14, 2008
Foreclosure Prevention
Foreclosure Prevention
The two secondary-mortgage-market companies are well aware of the market pain and are taking a number of steps to provide relief, particularly to prevent foreclosures.
Among other things, Freddie Mac is allowing lenders to modify their at-risk loans into 40-year, lower interest-rate mortgages and to reduce borrowers' burdens by permitting them to roll up to six months of missed payments into what amounts to an unsecured second loan. The two companies are also ramping up their staff and adjusting compensation so their internal structure better matches the size and complexity of the processing demand they face.
What’s more, to help facilitate short sales, Lockhart’s agency will be releasing a large-scale, streamlined, standardized process for expediting short sales, which he said will give lenders flexibility and tools like principal forbearance that they can’t easily use right now.
But Lockhart made it clear that the bulk of the problem isn’t with Fannie and Freddie loans, but debt in what the financial services industry calls private-label securities, the Wall Street loans, many of them subprime, that are held by investors all over the world.
The streamlined short sale process his agency will be announcing soon—he didn’t give a time line—could go a long way to focusing the minds of lenders on the problem. But ultimately the problem won’t go way until interest rates come down, buyers start streaming back into the market again, and prices firm up, he suggested.
—Robert Freedman
Realtor Magazine
The two secondary-mortgage-market companies are well aware of the market pain and are taking a number of steps to provide relief, particularly to prevent foreclosures.
Among other things, Freddie Mac is allowing lenders to modify their at-risk loans into 40-year, lower interest-rate mortgages and to reduce borrowers' burdens by permitting them to roll up to six months of missed payments into what amounts to an unsecured second loan. The two companies are also ramping up their staff and adjusting compensation so their internal structure better matches the size and complexity of the processing demand they face.
What’s more, to help facilitate short sales, Lockhart’s agency will be releasing a large-scale, streamlined, standardized process for expediting short sales, which he said will give lenders flexibility and tools like principal forbearance that they can’t easily use right now.
But Lockhart made it clear that the bulk of the problem isn’t with Fannie and Freddie loans, but debt in what the financial services industry calls private-label securities, the Wall Street loans, many of them subprime, that are held by investors all over the world.
The streamlined short sale process his agency will be announcing soon—he didn’t give a time line—could go a long way to focusing the minds of lenders on the problem. But ultimately the problem won’t go way until interest rates come down, buyers start streaming back into the market again, and prices firm up, he suggested.
—Robert Freedman
Realtor Magazine
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