Lot’s of crashing waves, froth, myth, fear mongering and fantasy about what’s going on in the real estate market.
Look before you leap, sleep or snooze and lose. Understand that real estate markets are hyper local. That means what’s happening in your exact neighborhood could be different than what is happening in your community, city, village, state, etc. You’ll want to seek the guidance and candid savvy from a trusted real estate icon. Someone who can research, interpret and relate. Is now the time to buy? Could be things will rebound sooner rather than later.
Real estate markets are hyper local, the Housing and Economic Recovery Act is National.
A few key points - Housing and Economic Recovery Act:
• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• Homebuyer Tax Credit - a $7,500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
• Additional Property Tax Deduction – HERA provides a one-year benefit that will be available to all homeowners. Under current law, property taxes are deductible only if an individual itemizes his/her deductions on Schedule A of their tax return. The new provision will permit a deduction of up to $500 ($1,000 on a joint return) for all individuals who utilize the standard deduction and do not itemize. Instructions will be provided on the 2008 tax return when it is distributed at year-end
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It’s been a couple of days now. Yesterday we saw mortgage interest rates fall like bunge jumpers. Overall consensus - it is a powerful positive.
Here’s an interesting article on how it unfolded.
Mounting Woes Left Officials
With Little Room to Maneuver
By DEBORAH SOLOMON, SUDEEP REDDY and SUSANNE CRAIG
September 8, 2008; Page A1
WASHINGTON — In the end, Fannie Mae and Freddie Mac had no choice.
Summoned to separate meetings on Friday with Treasury Secretary Henry Paulson and other top officials, the two mortgage giants were told they could either agree to a government takeover or one would be foisted upon them.
“We have the grounds to do this on an involuntary basis, and we will go that course if needed,” Mr. Paulson told senior executives at the two companies, who had little idea such a move was coming, according to three people familiar with the meetings.
There was no dramatic trigger, nor was there fear of imminent collapse. Instead, the sweeping government intervention stemmed from a growing realization by Treasury and Federal Reserve officials that the two companies couldn’t survive in their present forms, and that any collapse would be devastating to the economy.
THE REST OF THE STORY
Winners and Losers Score Card - Read IT HERE
Thinking about remodeling the Kitchen? Maybe you’re thinking about adding an additional bath or finishing out the attic, adding a bedroom. Kitchen remodels are common too. You might wonder, if I spend X$ on the remodel, how much of my investment can I recoup when I sell?
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