Thursday, December 10, 2009

Today- a vote to allow Judges to do Principle reduction on primary home loans!

Loan Modifications with PRINCIPLE REDUCTION does not happen hardly at all. It should, and it makes sense. This is a good call to action, and I would support this bill. Please spread the word if you can

Via Mark Archer (REC Real Estate Consulting Services LLC):


In the next 2-3 years, it is estimated that there will be an additional 14 million foreclosures in this country. That will make the total roughly 20 million homes lost in this catastrophic recession.But it won't stop there. Foreclosures breed foreclosures. And 20 million foreclosures just means that millions more homeowners will find themselves seriously underwater... owing quite a bit more than their house is worth... and they'll walk away... just like 18% are doing now.
And that will mean even more foreclosures after that. And that will mean everyone's property values continue to fall, which will bring even more foreclosures.

Both President Bush and President Obama have tried to put plans in place to stop the flood of foreclosures... BOTH HAVE FAILED. Why? Isn't it obvious?The banks cannot be trusted to act in anyone's interest but their own. The government has given them hundreds of billions of dollars, after they bankrupted themselves. And yet, they act as if it's business as usual.This year alone, the major banks in this country are paying out $91 BILLION in BONUSES to their executives!

The only answer is to allow judges to modify mortgages for homeowners in bankruptcy court. Here are a few facts that will show you why this is so important:

1. President Obama's Making Home Affordable program was designed to work with "a carrot and a stick". The "carrot" is the money banks receive when they modify a loan, and the "stick" was supposed to be allowing judges to modify the loans. Without the "stick," the plan cannot work.

2. Banks don't modify their behavior for the same reason I wouldn't modify my driving habits if there weren't Highway Patrol officers out there to give me a ticket or take me to jail if I drive 100 miles per hour. No stick.

3. Allowing judges to modify mortgages in bankruptcy court WILL NOT increase borrowing costs in the future, which is what the banking lobby is saying and wants you to believe. The amendment only allows judges to modify mortgages that are already in existence when the bill is signed. It will have NO EFFECT on borrowing in the future whatsoever. NONE.

4. If we allow judges to modify mortgages on primary residences, chances are they'll never get the chance... because the banks will modify them... like they're supposed to.

5. Judges can already modify every other type of loan in bankruptcy court, just not mortgages on primary residences. Allowing them to do so will help stop the foreclosure crisis that is hurting every homeowner in America... AND IT WON'T COST THE TAXPAYERS A DIME!

Our economy cannot begin to recover until we stabilize the housing market. We've tried letting the banks decide... and look where we are today.The only people opposed to this amendment are the bankers and financial service companies. We can't turn our country over to them, can we?

Click the button below NOW, 24/7. There is literally NO TIME TO SPARE... You don't even need to know your representative's name. All you need to know is your own name, address, phone and zip code. The letter is already written for you. Just enter your information and click the button to send. It's that simple and takes less than a minute.


EMERGENCY!! PLEASE TAKE ACTION RIGHT NOW... SAVE BANKRUPTCY REFORM! Posted: 10 Dec 2009 01:45 PM PSTJUST MINUTES AGO...House Rules Committee agreed to allow the bankruptcy modification amendment THAT WOULD ALLOW JUDGES TO MODIFY MORTGAGES to be considered on the House floor as an amendment to the broader financial services reform bill AS EARLY AS THIS AFTERNOON!!THIS AMENDMENT IS BEING FIERCELY OPPOSED by the BANKS AND FINANCIAL SERVICES communities and we NEED to get people CALLING in IMMEDIATELY. PLEASE TAKE TIME NOW TO contact your friends, family and business associates... stop whatever your staff is doing to give them time to call in. Put it on your Facebook pages, on your LinkedIn pages, Twitter it... re-tweet it! PLEASE DO IT RIGHT NOW!IT'S SUPER EASY TO DO:Phone toll free at: 877.354.4958Put in your zip codeWhen you reach the receptionist:State your nameSay that you are a constituentAsk the Representative to vote FOR the Conyers-Turner-Lofgren amendment (#201) to the Financial Services Reform bill.This amendment will cost taxpayers NOTHING and will save millions of homes from foreclosure. IT MUST BE CONSIDERED... IF THE LINE IS CLOSED, BECAUSE CLOSES AT 6:00 PM...Email your Senators (24/7) using the link below, which will lead you to a sample email that you can edit and personalize. YOU DON'T EVEN NEED TO KNOW YOUR REP'S NAME... CLICK AND GO!Email Your Congressional Representative Now

Wednesday, December 09, 2009

If you were thinking of buying a car, you might want to hurry! Unknown tax credit ends at the end of 2009!

Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year. The tax break is part of the American Recovery and Reinvestment Act of 2009. Thanks to our local news station for helping to get the word out ABC Action 7 news here in Sarasota.

And you don't even have to bring in a clunker either. It would be nice if this credit did not have such a quick expiration.

I had just found out that as part of the latest stimulus package, you may be able to deduct the taxes paid on a new vehicle purchase through the end of the year. I had to share this because I think that if you were considering buying a car you might want to get it done before it expires at the end of the year. Check out this IRS web site for full details.

Also, this applies to not just cars. RV's, trucks, motorcycles, are also included up to 49,500.

Maybe somebody will get that car under the tree. I am surprised that the car companies are not promoting this more with all their ads that encourage cars as the "perfect" gift for the holidays.

Here was some key points to the deduction

  1. State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
  2. Qualified motor vehicles generally include new (not used) cars, light trucks, motor homes and motorcycles.
  3. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
  4. This deduction can be taken regardless of whether or not you itemize other deductions on your tax return.
  5. Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
  6. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
  7. The deduction may not be taken on 2008 tax returns

Tuesday, December 08, 2009

where are all the bank owned homes in Manatee County?

It was front page news that the number of foreclosures filings here in Manatee County has had 5687 foreclosure filings to date this year, which is an increase from last year. This is a lot of homes and as an active agent it made me wonder where are all the bank owned inventory?
There are 4696 total active residential listings as of this evening (11/22/09). 474 "normal" are pending
There are 149 active bank owned homes 123 pending
There are 920 short sales active there are 940 pending
The Statistics show two big things.
The action is happening on bank owned, and short sale homes. You can clearly see that there is almost the same amount of pending listing vs. active in the short sale/bank owned categories. The conventional sellers have only about 10 to 1 that are pending.
If there are almost 6000 homes that have entered foreclosure WHY is there less than 300 active and pending bank owned properties
Factor in that there are foreclosure filings from prior years that have not been completed. Many foreclosures I am aware had a foreclosure filing well over a year ago and have not gone to auction.
Also, some of foreclosure filings that are also homes that are currently listed as short sales.
Some of the foreclosure filings can also be filed from second position lien holder,s and homeowner associations that have a low probability of actually forcing a sale. These type of filings maybe inflating the numbers somewhat.
So there are under 2000 homes short sale homes, active and under contract. This means that there are around 4000 homeowners that are either attempting a loan modification, or have given up on either a short sale, or some type of work out solution.
I would estimate that if there are 2000 homeowners short selling, than there is at least that many attempting or considering a loan modification.
Activity in Manatee County has significantly increased in the past few months. Prices have continued to drop except in the 200,000 and under market where prices have leveled. Multiple offers are much more common for bank owned homes.
Why is there only 5% of the total inventory bank owned when there is more homes in foreclosure than all active and pending sales on our local MLS?
Two reasons
1. The slow pace of foreclosures is due to the flood of files, and the increasing willingness for lenders to agree to short sales, and loan modifications.
2, Anyone that has a bunch of inventory to sell realizes that if they flood the market it will drive down prices.
I am hopeful that the lien holders will come to realize it is better to keep homeowners that want to stay in their home if at all possible. Less inventory will create price stability.
The question remains when will all those foreclosures will come on the market? I guess it is really in the lien holder's hands.

whether you are buying or selling I am here to help. Serving Sarasota and Manatee Counties for the past 8 years with skill, knowledge, and care. Expert in short sales. If you have questions I have anwers.
Joe Murphy 941-780-3260

Hope for short sales and loan modifications- new guidlines this week!

Finally! Home owners, Realtors, Lenders, and home buyers are all going to benefit from these new guidlines. The faster and easier the process becomes the closer offers will come to being fair market value.

This will lead to reduced inventories, and market stabilization. The Treasury department created a 46 page guide for major lenders to follow with regards to short sales, deed in lieu, and loan modifications. The frustrating process was in need of standardization, and streamlining.

Short sales that are dragged out for months and months. Homes that sell as short sales tend to go pending with prices that are below market value since the buyer(s) brace themselves for the long drawn out process with no guarantee that their offer will be accepted.
These guidelines go into effect in April of 2010. Hopefully, most lenders will become early adopters of the new guidelines.

One major point of the guidelines is that the lender has to offer a plan to help the borrower with a loan modification ahead of entertaining a short sale, or deed-in-lieu.

This is a great requirement, since I see many people that would rather keep their current home, but are having a tough time making the payments, or they are so far "underwater" that they question the rational of paying on a mortgage that is much higher than the actual value.

I think that one aspect that was missing was creating an incentive for the lend ers to "cram-down", or reduce the principle balance to the actual value of the home. Many borrowers would work to keep their homes if they had equity, or at least didn't have negative equity.

Some of the major points that relate to short sales.

1. Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
2. The seller will be released from all liability for repayment of the mortgage debt.
Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
3. The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
4. The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
5. The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
6. The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.
LINK to Home ownership retention guide

If you are looking for help with a short sale or loan modification for a home located in Manatee or Sarasota Counties I would be happy to help you understand your options. I have helped dozens of homeowners either sell or assist to modify their home loans. I can help you too with no cost. For all your real estate needs I am ready to go to work for you!
Joe Murphy 941-780-3260