Deed for Lease will permit borrowers to transfer their ownership to FM and sign a rental agreement for one year. After that period, leasing will be on a month-to-month basis. This deed-in-lieu-of a foreclosure has less of an impact upon a borrower’s credit record than a foreclosure.

This program is targeted for those homeowners who are at risk of foreclosure, but who do not meet the requirements for a government loan modification. Fannie Mae has outsourced the management of these properties.

To be eligible, the home must be the primary residence and the homeowner has to verify that they can indeed be responsible for the rental cost. The amount cannot be more than 31 percent of the homeowner’s pretax income and will be determined by the management company.

Jack Ryan, a Fannie Mae vice president, was quoted in a statement as saying that the Deed for Lease program will “eliminate some of the uncertainty of foreclosure, keep families and tenants in their homes during a transitional period and help to stabilize neighborhoods and communities.”

TALK BACK: What do you think of the Deed for Lease program? Post your comments below.

Posted by Sharon Walker

Here are a few tips for winterizing your home:

1. Have a furnace inspection - No matter the age or type, having your furnace inspected by a professional can save you headaches farther into the season, when the temperatures are apt to dip well below freezing.
2. Inspect your fireplace - Having your chimney cleaned and inspected should ensure safe usage throughout the winter months.
3. Drain outdoor spigots - Detach and store all outdoor garden hoses.  Drain water from spigots and shut them off from indoors.
4. Check exterior doors and windows - Check for drafts and caulk or weatherstrip any openings to prevent heat loss.
5. Clean out gutters - Fall leaves and twigs can clog gutters. Clearing gutters of debris keeps rainwater diverted away from the house and reduces possible damage to your house and the gutters.

Taking these few steps could help to ensure that your home will be warm, comfortable and safe this winter.

TALK BACK: Do you have any other home winterizing tips? Post your comments below.

Posted by Sharon Walker

The conclusion? Yes, but not if you’re going to overpay.

The buyers market is ending, we learn, as home prices rise across most of the country. However, there are still plenty of opportunities to snag a “good deal” for focused home buyers.

Some of the video’s tips include:

• On what types of homes can you get the best prices
• What you can learn from looking in a seller’s closet
• How to identify a desperate seller
  

Although the piece reflects negatively on short sales - noting the amount of time required to buy is longer than a “traditional” purchase - it doesn’t mean they should be avoided. There are plenty of bargains there too.

Posted by Ryan Leahy

This is a guest post by Ryan Leahy. He is a lender with Leahy & Associates in Austin, TX, and updates his blog daily. To contact Ryan, call (512) 692-7242 or email rleahy@houseloan.com.

To the dismay of many homeowners, the results were rather inconclusive.

Higher rates of sulfur, strontium and sulfuic compounds were found in the Chinese drywall as compared to drywall manufactured in North America. However, federal officials have not been able to link these results to the homowner’s claims of metal corrosion and health problems. Reporting that these tests have been somewhat limited in their scope, officials are saying that another month of study is needed before any conclusions can be drawn.

CPSC spokesman Scott Wolfson said, “We must have scientific proof of the hazards of the problem.”

Florida Senator Bill Nelson expressed his frustration with the pace of the investigation. “If you hear impatience in my voice, you are an accurate judge,” he said. “What I am reflecting is people’s concerns, their financial devastation, health effects.”

It is expected that sometime this month the results of a study of 50 homes will be released, which should include any recommendations for how to combat the problem. To date, the government has spent $3.5 million investigating issues related to Chinese drywall. It’s the largest product safety investigation in the history of the CPSC.

Posted by Sharon Walker

The bonus: Existing homeowners looking to trade up to a larger primary residence could receive a tax credit up to $6,500. The stipulation is they must have owned their home for five consecutive years out of the previous eight.

For both groups, the full credit would be limited to individual buyers who earn less than $125,000 a year and married couples who have an annual income up to $225,000. In addition, the credit could only be used for homes purchased for $800,000 or less.

Proponents of the credit say it has helped strengthen existing home sales in recent months. An extension of the tax credit is thought to further support sales and help stabilize housing prices. Critics of the credit believe many of the home buyers who took advantage of the credit would have purchased their homes without it.

Expected to be attached to a bill that would extend unemployment benefits, it was hoped the bill would pass by last week. There is a possibility the housing tax credit could be handled on its own.

TALK BACK: What do you think about this proposed buyer tax credit extension and expansion? Post your comments below.

Posted by Sharon Walker

Total claims: nearly $4 million, with $627,000 having been doled out by the government to date. Among the claimants: a child 4 years of age.

Because age was not a screening factor, the Internal Revenue Service (IRS) failed to immediately identify applications coming from “children.” J. Russell George, Treasury Inspector General for Tax Administration, testified before a House Ways and Means Subcommittee last week that of the 580-plus children claiming the tax credit, 165 did not meet the IRS’ adjusted gross income screening criteria. This red flag is what brought further investigation.

Since the end of September, 167 suspected fraudulent claims have been identified by the IRS, with the agency opening more than 100,000 investigations of possible misuse of the first-time home buyer tax credit.

George also indicated that of the electronically filed 2008 tax returns of, more than 19,300 taxpayers claimed the credit on a future purchase of a home. The amount of those tax claims is more than $139 million.

The tax credit is slated to expire December 1.  The Obama administration and a number of leaders in both houses of Congress are endorsing an extension of the tax credit.

Posted by Sharon Walker

Lawrence Yun, chief economist for NAR, attributes much of this increase to first-time buyers. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said.

Due to a strong stream of distressed properties, e.g. short sales and foreclosures, nationally, the median price of homes sold in September fell 8.5% from a year ago to $174,900.

Sales by region were reported thus:

Sales vs Aug. ‘09               Comparison to Sep. ‘08                Median Price

West                  +13%                                       +5.7%                                $219,000    -15%

Midwest            +9.6%                                      +7.8%                                $147,000    -1%

South                +9%                                         +10.8%                              $153,500    -7.6%

Northeast         +4.4%                                      +11.8%                              $234,700   -7.6%

Posted by Sharon Walker

Expanded from 1 page to 3, the legislators responsible for the new Good Faith Estimate want it to be simpler for homeowners and home buyers to understand than the former version.

By most accounts, Congress will meet this goal.

The new Good Faith Estimate includes plain-English explanations of every fee, charge and interest payment involved in a purchase or refinance. It also includes a section called “The Shopping Cart” in which applicants can compare lenders.

The new Good Faith Estimate is concise, too. Using a series of “Yes/No” checkboxes on Page 1, mortgage lenders specifically note:

• The interest rate on the mortgage
• Whether the interest rate can change over time
• Whether the loan carries a prepayment penalty
• The length of the rate lock

Currently, this information is spread across 3 separate forms.

Furthermore, the new Good Faith Estimate simplifies rate-and-fee comparisons, showing applicants how a lower rate can be available for a higher set of fees, and vice-versa.

For all of its clarity, though, the new Good Faith Estimate still fails to address the issue of “suitability.” As in, is this the right loan for the right borrower? That’s something only a loan officer can do.

For suitable advice, talk with a loan officer who both listens to your needs and helps you plan for them. Great terms on an unsuitable loan are often worse than “good” terms on the right one.

Posted by Ryan Leahy

Customarily during this time of year, home buyers’ and sellers’ interest in real estate takes a hiatus. Who’s got time to trudge around looking at houses or try to keep a house looking tidy, when you’ve got baking, cooking, parties and “family” on your mind? However, if a buy or sell is a must for you, the holidays may be the best time to be proactive in the real estate market.

For Sellers:

Buyers can be very motivated. These aren’t your Sunday open house groupies. These are buyers for whom a purchase is a must. Take your home off the market during the holidays and you may be missing out on a sale.

With other sellers on “a break,” there’s less competition. Home listings and advertisements may be down, allowing your home to stand out, beckoning to be visited.

The holidays give you an opportunity to show off your home in all its seasonal glory. Both Thanksgiving and Christmas decorations perpetuate the warmth of family and the ties that bind friends together - a very welcoming aspect of any home.

For Buyers:

There is less competition with other buyers. Because the number of home shoppers may be down, you’re less likely to be outbid on that home of your dreams.

There are tax advantages for buying before the end of the year. Mortgage interest, points, closing costs and property taxes are among the items that can be reported on your tax return.

Sellers may be open to negotiating extras like appliances, window treatments, etc., to get a deal done. This may be especially true if the house has been on the market for several months.

No matter which side of the real estate transaction you’re on, you can take advantage of this festive time of year and work it to make your holidays very happy.

TALK BACK: As a home seller, will your house remain on the market through the holidays? As a home buyer, will you continue looking for a house or take a break this holiday season? Post your comments below.

Posted by Sharon Walker

Herbert Allison, assistant Treasury secretary for Financial Stability, said, “We are developing a foreclosure alternatives program for HAMP (Home Affordable Modification Program), which will provide incentives for short sales and deeds-in lieu of foreclosure where borrowers are unable or unwilling to complete the HAMP.”

He continued, “We are aware that there are many borrowers who modifications under HAMP will not be sufficient to keep them out of foreclosure; for example, borrowers who do not have sufficient income to support a modified payment.”

Specific details of the plan were not given. Allison’s remarks were part of a hearing held by Congressional Oversight Panel chief Elizabeth Warren.

Posted by Sharon Walker