The Appraisal Industry In The Post-Housing Meltdown Period

Good Morning,
   Glad you can make it with us on this Friday, and I hope your week has been outstanding.

   In the tumult of the Housing Crisis (or "meltdown", if you prefer to call it that), the Government has taken a stern look at all of the moving pieces of the Real Estate and Banking industry(ies). One vital piece included in this is the Appraisal Sector.

   "Appraisal companies must do more for less in today's market. In today's market they must be highly competitive and with foreclosures distorting comps, they are both rushed and pressured to bring in business.", says Robert Shemin, a NY Times Best Selling Real Estate Author-Expert. Shemin says that for example, "you'll find one block in a neighborhood where 3 home-buyers have paid $200, then 2 foreclosures happen at $110, and its a difficult business"

   Another professional, James Manning, says that "The banks & ABCs still control the appraiser by means of Appraisal Management Companies who distribute the appraisal orders and take a huge slice of the fee." He says that, "If you don't play ball, you are off the roster. I don't see how the industry can survive."

   Despite the market upheaval, Melinda Crump with Sageworks, Inc, has pointed to some private sector data for industries related to real estate, and said that, "sales in a number of industries trended downward alongside the housing market as expected. Sales, though, have increased now for the appraisers".

   Are you an Appraiser? How have recent changes and trends effected your business?

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Survival Tips for Moving with Children

Hi Folks,
   Welcome back. Today, we will be discussing a topic that, for those of you who have children, may cause and increase in your anxiety level. That topic is moving when you have children, and how to survive the process, and we have checked in with quite a few people who have gone through this for their perspective and tips.

   Nikole Gipps, who has moved from California to Oregon when her children were young (her son was 2 months old and her daughter was 3 years old), suggests that you, "Pack as if you're going on a vacation to someone else's house for 7-10 days.", as she says, "You never know if your moving containers will get delayed, so you don't want to be stressing about your child's blankie or clothing for the family." Gipps suggests that you get your kids excited about the move and all of the things that await them, as if it were "an adventure, not a burden."

   Diane Easley, of Easley Real Estate, reminds us that children are also stressed about the move, and as she says, "Even more so if there is a bad reason for the move, like divorce or foreclosure", and that it is important to talk with them and let them express their feelings. Cynthia A. Myer, President of Ridgewood Moving Services, similarly states that you should, "Be Positive!", since children are tuned into the emotions of their parents. Myer says that, "If Parents view the move in a positive fashion, those around you will feel optimistic about their moving experience.". She also says that the child's age makes a difference; Infants are least affected, but pre-schoolers may have a difficult time, and Myers suggests that you, "get them involved in the process. Let them pack some of their special possessions. Never dispose of any of these items, no matter how old or tattered they may be."

   As Helena Alkhas, a Personal Organizer, says, "Let’s face it; most of us aren’t comfortable with changes. So, imagine how scary it can be for our little ones to leave the place, friends and school they have known for their whole life as home."

   Alkhas says that you should, "Wear kids’ glasses", and that before talking to them, "take a look of what your new location has to offer to children, which would attract your kids’ attention. I personally like to put a “tourist” package together with all the parks, museums, hiking spots and nature related activities. Also, whats the history of the place, look for books, sticker books and your local library!"

   Another help along the way, as suggested by Sandra Gall, is to, "let some of your higher nutritional standards go for a little while.", and looking back at her move with children, she says, "Did we eat more junk than we would have liked. Yes. Did it help us to preserve our own sanity. Yes."

   Alkhas continues this thought and says it is important to cater to your children's interests, such as if your child is a boy scout (she suggests that you, "contact their chapter in your new town, introduce yourself and get their information."). Alkhas also says that you should notify your children's teachers, coaches and caregivers, since, "Making sure they know about your move will help create a net of supporting people for you and the children."

   On a final note, both Gall and Alkhas discuss the inevitable; Tears. Gall says that you should, "Let them cry, call their friends, take pictures of every rock in the drive way, or cut a jar full of grass with scissors just to take along." She adds that you need to, "Listen to them and ask them about their fears. Really listen. Don't dismiss anything as "silly." This is stressful for grown-ups but really just Earth-moving for a child." Alkhas says that you need to, "Allow room for tears", as it's part of the change. She recommends that you, "Keep your cool, trust your heart and always move forward!", and that kids pick up on our anxieties so, "make an effort to embrace the change and they will follow."

   Are you making a move with children, or have you done so in the past? We'd love to hear what helped you survive the process.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Real Estate Radio Philadelphia Interview on Rent to Own Homes

Good Morning,

   On March 26th, we were interviewed on a Real Estate Radio program that was broadcast live in the Philadelphia Metro Area, and was simultaneously available on the Internet (www.1180wfyl.com).

   The program, hosted by Doug Andraka, who is also a Mortgage Banker with Superior Home Mortgage Corp., focused on what a Rent to Own entails, along with some positives for both the Sellers and the Buyers. During the interview, I even included a few tips that could help you prevent headaches in the future.

   To listen to our segment on the show, the direct link for the Interview is Available Here.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

An Offer for Those Selling a Home via Rent to Own

Hi All,
   Happy April Fool's Day. What we are going to discuss today is not a joke, and there is no fooling.

   We want to make this Blog Post as non-pitchy and "non-salesy" as possible, since I feel that the following can certainly be construed as sales-pitch material by most, however, if you read it thoroughly, you will see that it is certainly not.

   As most of you know, our business consists of buyers, sellers, and service providers listing their homes, requests for a home, or their services, on our website, for a highly-competitive price (which pales in comparison to the volume of people that see their Ad and the quality/qualifications of these visitors.

   We have very recently experienced perhaps a temporarily disproportionate amount of Ads from Buyers ("Homes Wanted") vs Ads from Sellers ("Homes Available"), and we are looking to close this gap. In order to beef up our inventory of Homes/Sellers, we are offering free 3-Month Ads to anyone looking to Rent to Own/LeaseOption/Lease Purchase their home (or homes, if you have more than one).

   We are looking to run this for a little while, until we close the gap. I'm trying to be as honest and up-front about this, and if you like our website, then tell a friend (we like that!).

   I made the Two-Step process pretty simple, and if you want to list your Home for free with no strings attached (except a referral, perhaps?), here is what you need to do:

STEP 1:
E-mail us at homebuyer@lease2buy.com and use the Subject Line "BLOG - MY HOME FOR RENT TO OWN"

STEP 2:
Next, we will reply to you with a Username and Password - and then you can log in and create your Ad, upload photos, etc.

   We are trying to make it as simple as possible for you. I look forward to seeing your homes on our website, and we appreciate your time.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Home Sales Up, Home Prices Down

Hi Folks,

   Glad to have you back.

   It was a mixed week in terms of the Housing Market, but at this point, we'll take a mixed week vs an abysmal week!

   The good news first; The Pending Home Sales Index For February was released by the National Association or Realtors, or NAR (and "reflects contracts and not closings, which normally occur with a lag time of one or two months). The numbers showed a rise of 2.1% from January (but a drop of 8.2% from February 2010).

   The "other" news, as we will call it, came from S&P, and the S&P/Case-Shiller Home Price Indices for March. This is a case of when the title tells the story; "Home Prices Off to a Dismal Start in 2011". In summary, their large 20-city composite showed a 3.1% drop from January 2010 to January 2011, with San Diego and Washington D.C.as the only two markets to record "positive year-over-year changes".

   What to make of these numbers. If I said I knew, I'd be lying. We have a comment submitted to us by Paul Gabrail, co-founder of Select Investment Group, a Cleveland, Ohio real estate investment firm, who says that, "there aren't enough positives in the housing numbers to outweigh the anchors holding values down, which include oversupply of recent years' new construction, the oncoming supply of foreclosed homes that have been held back since October by banks, and the unemployment and income numbers that we are experiencing. Bottom line, housing values still have further to drop."

   Construction numbers come out on Friday, so maybe we'll get a clearer picture of where things are headed as we approach mid-year.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

How Can You Prepare Your Home to Sell?

Hi Folks,

   Thanks for joining us for another day of news and information on the Real Estate and Rent to Own Market. Today, as always, it's my goal to provide you solid news and information that will help you in all of your real estate endeavors.

   The topic for today covers some tips on preparing your home for sale (or even for Rent to Own). John Ruzicka, a person that has worked as a buyer's agent in California since 2004, and has heard a lot of feedback from potential buyers, tells us that there are three top things a seller can do to prepare their home for a quick sale, which he says are, "Remove clutter - box it up and put it away! You're moving anyway, so why not get a jump on the packing?", "Mow the yard - clean the clutter outside, mow the yard (and keep it mowed), consider planting some seasonal flowers to add some color", and "Make a good first impression - what's the first thing that buyers see when they walk in the door? Is that going to make a favorable impression? If not, consider making a change, which could be as simple as having carpets cleaned, re-painting a single wall, or leaving drapes open to let in natural light."

   In keeping with the idea of first impressions, Joyce O'Haus, of LaTorraca Realtors, suggests to Remove any old carpet ("this takes odors out and makes such a better first impression"). She also suggests that you, "Tie back all curtains to let in light - make sure windows are clean". Additionally, she says you should remove, "half of your furniture, make all rooms appear as large as possible.", and says, "please please please, no pet odors allowed."

   Jewell Staley, a self-described expert at helping sellers prepare their homes for sale, makes some additional suggestions, the first of which is to consider, "re-glazing the tile in a neutral color (have your contractor scrape the grout and re-grout after glazing). Another option is to add wainscotting over the tile." Staley says that, "An outdated kitchen can be easily updated with a few changes", of which she gives the following examples: "a) update kitchen knobs b) replace an old Formica counter top with at least a pre-cut laminate counter top in a stone pattern or tile the counter top with bright white tiles c) purchase replacement knobs and drip pans for old appliances."

   Staley says that you should update outdated fixtures – lights, bath, and kitchen, replace old outlet covers with new covers which can cost as little as 25 cents a piece, and says that if you haven't painted your house in the, "last 10 years, it’s time for a fresh coat." She highly suggests Earth tones.

   Jacob J. Gabrie, CEO of Town Center Realty Group in El Dorado Hills, California, says that, "It's ok to ask questions. Ask many questions of your agent, their broker and others in the industry even...you may be surprised by how much you can learn simply by asking questions." Gabrie also suggests that you follow up with your agent, and, "If the agent is not returning your calls or emails, it may be that they are not returning the prospect calls either. Keep tabs on the agent and voice your concerns if they don't follow up." Finally, Gabrie suggests that you do inquire, "regarding the marketing of the home; specifically asking the agent what they are doing to market the home on a regular basis. There are many ways today to market a home besides the newspaper and open houses. Ask for "copy" of the marketing that is published and the links to the on-line marketing."

   Joan Gale Frank, a real estate investor, a home seller, an author, has made some great "out of the box" suggestions, such as to, "Install a brass or polished metal kick plate to your front door to make a home look richer (as you'll often see on the doors of expensive financial advisor or lawyer's offices.)", to, "Change the elevation of your furniture in a room to include highs and lows, so house hunter's eyes are delighted by seeing something usual, rather than having all of the furniture fall within the typical range of 1 1/2 feet to 3 feet off the ground. (Leaving the top half of the room looking empty.), and says that she does not, "I don't advocate dropping money into major repairs, but some inexpensive updates to lighting, bath and kitchen fixtures and small items such as door pulls, new light switch plates and throw rugs can make a home much more memorable. Of course coming up with a price that attract home buyers is also a critical aspect of attracting buyers."

   Have you recently prepared a home for sale? What did you do that we could all learn from?

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Real Estate Radio - Philadelphia WFYL 1180AM

Hi Folks,

   Just a quick note that yours truly (me - Rob Eisenstein), will be interviewed regarding Rent to Own on "Real Estate Radio Philadelphia", hosted by Doug Andraka, this Saturday (3/26), between 9AM and 10AM EST.

   The show can be heard on 1180AM, and will also be simulcast at http://www.1180wfyl.com

Be sure to listen in for some great tips !
Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Existing Home Sales, New Residential Sales, and Home Prices. Ouch!

Hi Folks,
   Hope your week went better than the recent Housing Market numbers!

   On that sour intro, NAR Existing Home Sales were released this week, and they showed us an almost 10% drop from January to February, and nearly a 3% drop from a year earlier. New Residential Sales were even worse, with almost a 17% drop from January to February, and, get ready for this...a 28% drop from exactly one year earlier.

   The Home Price Index that is tallied by FHFA did not fair any better. We saw home prices drop 0.3% from December 2010 to January 2011, but for the 12 months ending in January, prices fell 3.9%. To put these numbers in perspective, the U.S. index is 16.5% below its April 2007 peak.

   So, how was your week...?

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Buy an Existing Home or a New Construction Home?

Hi Folks,
   Welcome back. I missed all of you !

   Today, we will tackle the question that you may or may not have pondered before: Should You Buy a Resale or a New Construction Home?

   Many factors that need to be taken into account revolve around you, the buyer. Jennifer A. Chiongbian, an SVP and Associate Broker of Sales, Rentals & Investment Properties, says that she believes that the buyer should, "first and foremost consider what is most important, space, prestige of living in a new building and/or amenities."

   In terms of purchasing a resale home (existing home), let's look at some advantages and disadvantages. As Chiongbian says, some advantages of a resale home include the fact that perhaps, "the building is more established; and will be easier for your bank to ascertain the viability of a loan since it will be much more stable, in terms of its capital reserves, determining the amount of sponsor units left in the building; and generally will have an established history of primary residents, investors, renters." Additionally, she says that the re-sale units of old post war buildings tend to have more "space friendly layouts without all the pomp and circumstance.", including larger sized bedrooms, better use of layout and windows that are, "not as attractive as the floor to ceiling windows offered in new construction, but much more user friendly." Doug Andraka, a Mortgage Banker and Host of "Real Estate Radio - Philadelphia", mentions some other advantages, such as, "typically" a much lower sale price, lower real estate taxes, negotiating power with the current seller, who may be very motivated to sell.

   "With a re-sale, the disadvantage is you stand a good chance of having to renovate something in the apartment" says Chiongbian, who adds that, "this includes you being responsible for finding your own reputable contractor, and possibly living in the unit while the construction is going on; because the buyer will not be able to touch the unit until title is fully turned over." Andraka also says that, "there may be more maintenance, more fix-up work, and the house may not be just the way you like it (colors, floors, tile, etc.)"

   In terms of new construction homes and properties, Chiongbian says that, "One obvious advantage to new construction is that they can be turn key properties with out having to do any renovations", and that, "the builder is more open to doing combined units, semi-customizing your wants with their own team in place, and all you need is your imagination as to what you would like or how the actual finished product will be envisioned". Andraka adds that, "everything is new. Maintenance should be low. Buyers have their choice of appliances, paint colors, carpets, tiles, etc."

   As for disadvantages, Andraka mentions a higher price, higher real estate taxes, and a longer process (6-12 months) for delivery. This can add an interest rate risk as well.

   Overall, summarizes Julie Vanderblue of the Vanderblue Team, it "depends", and she says that, "In this market, there is amazing opportunity in both...finished new construction just sitting there with the builder sweating bullets...you may want to rent to own or buy at discount...half finished new construction offers great opportunity....resale of a few years young is great as the property has already gotten the kinks out and settled...and if the sellers are getting out so soon their is usually a financial motivation..."

   What are your thoughts on this? Would you like a brand new home or an existing/resale home based on this information? We'd love to hear from you.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #realestate #newconstruction

Property Flipping Redefined?

Hi Folks,
   Glad to have you back !

   There have been so many changes to Federal, State, and Local legislation over the past few years since the financial meltdown, that it had me wondering if all of these changes have redefined what is traditionally referred to as, "Property Flipping". To those of you who are unaware of what "Property Flipping" is, it is basically purchasing a home and flipping it, or selling it in a short period of time, preferably for a profit (the goal!).

   We spoke to an investor who gave us his view from the front lines for his input on this question. "I feel that property flipping has been redefined by legislation through the government and lenders playing the game of shadow inventory", says Phillip Vincent, a Realtor and Real Estate Investor in St Louis MO. Vincent says that, "They try and control the market thru these tactics. So as to not flood the market with all the home that are actually on their books."

   Vincent tells us that as an investor, "we look to purchase properties monthly, that we will fix up, re-hab, and bring back to market. These properties are taken from eyesores on the street to one of the nicest on the block. I have been called an ambulance chaser by fellow Realtors, for buying properties on the cheap, but I feel the cit(ies) we live in are made better by what we investors are doing."

   In addition, he tells us that legislation has affected, "the amount of auction, bank homes we have to choose from.", and says that, "We are currently having to look at dreaded short sales for our next projects."

   Are you a Real Estate Investor? How has legislation helped you or harmed you? We'd love your input on this topic.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Home Remodeling Forges Ahead Despite The Slow Economy

Good Morning,
   Thanks for being an integral part of another week here...we truly appreciate it.

   Today, we are glad to present an incredibly informative guest-post from BuildFax, the nation’s leading provider of building permit data, provided to us by Joe Emison from Buildfax. The remainder of this Blog Post comes from Buildfax:

   "One might think that this winter’s wild weather may have put the brakes on the remodeling industry, but as Americans look more and more to remodeling their house, rather than buy a new one, remodeling has continued to show some impressive gains.

   According to the BuildFax Remodeling Index (BFRI), the most detailed remodeling index available, January 2011 was the 15th straight month of year-over-year gains for remodeling activity, a very positive sign for the industry, especially as the economy is still in a very slow recovery.

   Looking at consumer behavior, it is apparent that Americans are investing in their homes again, even if they are not seeing gains in equity. The BFRI for January rose 22% year-over-year to 99.0, the highest January number in the history of the index, which starts in 2004. Residential remodels in January were down month-over-month 4.8 points (5%) from the December value of 103.8, and up year-over-year 17.6 points from the January 2010 value of 81.4.

   All regions posted year-over-year gains, although the Northeast continues to lag behind the other regions. For the first time in four years, the Northeast posted a year-over-year gain in January. The other regions all did significantly better than the Northeast, posting double-digit percentage gains over their respective January 2010 values. As is usual in January, index values were down month-over-month in every region: the Northeast was down 6.9 points (9%), the South was down 4.3 points (5%), the Midwest was down 9.6 points (10%), and the West was down 3.8 points (4%).

   As the spring arrives, we hope to see this positive year-over-year trend continue, as remodeling activity continues on the upswing and the industry trends upwards. To follow the trends, be sure to look at BuildFax.com each month for the latest BFRI numbers and analysis and you can also follow BuildFax on Facebook."

Joe Emison
BuildFax
**********

   Thanks to Joe and Buildfax for this valuable information !!!

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Bad News For Builders?

Hi Folks,
   Hope your week has been amazing, if not productive, thus far.

   The time has come again for the all-important New Residential Construction numbers for February 2011, and we'd like to examine those with you today. As always, we open the floor for your comments, as well.

   Now, as you may already know, when we discuss, "New Residential Construction", this is actually composed of 3 parts: Building Permits, Housing Starts, and Housing Completions, which is quite intuitive as a flow chart from start to finish.

   From a top-level analysis, everything took a beating, both over the short term (January 2011 through February 2011) and also over the longer term (February 2010 through February 2011). The only exception to this was Housing Completions in the Short term for both Single-family housing completions and Privately-owned housing completions.

   The biggest loser in the short term was Privately-owned housing starts (22.5% below January 2011), with the biggest loser in the longer term checking in as Privately-owned housing starts (20.8% below February 2010).

   Jim Olenbush, a Broker/Realtor in Texas, says that, "Today's numbers may be bad news for home builders, but it is good news for the resale market.", since, as he says, "We have too much inventory in most areas, so a decline in building is a necessary step to recovery."

   What are your thoughts on these housing numbers?

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

HAMP, HPF, GMAC...Working For You or Against You?

Hi Folks,

   Hope you had a great weekend, and as always, ecstatic to have you back with me here today.

   Let me first preface this Blog post with a, "This is Just the Facts" disclaimer...it is not politicized, but just based on facts from a recent story titles, "Former Subprime Lender Runs Key HAMP Program", by Elizabeth MacDonald for FoxBusiness, which details, "Conflicts of interest accusations against a key player in the Treasury Dept.'s heavily criticized, $46 billion "Home Affordable Modification Program," or HAMP."

   As you may already know, the HAMP was launched in February 2009, with the administration, "vowing that it would stop foreclosures for three million to four million distressed homeowners." The HPF, or The Homeownership Preservation Foundation, provides free foreclosure counseling over a toll-free foreclosure prevention line.

   Now, as the story says, the chairman of HPF, Bruce Paradis, is the former chief executive of the failed big subprime lender GMAC-Residential Capital (Rescap), which originated, "more than $65 billion in rotten loans during the height of the bubble, from 2004 to 2007.", and the received, "$17.2 billion in taxpayer money from Treasury’s Troubled Asset Relief Program, or TARP to re float its operations."

   As for HPF, they received a lot of money from mortgage industry players (Fannie Mae, American International Group (AIG), and the now defunct Countrywide Financial), and as the story says, HPF also got, "tens of thousands dollars more from Ocwen Loan Servicing, Chase Manhattan Mortgage, and Washington Mutual."

   "HPF’s hot line number is on every HAMP denial notice sent to borrowers rejected by the federal modification program, and it also “appears on 4,927 government Web sites,” and “ is prominently featured" by "40 top lenders” in their mortgage operations" HPF tells Fox Business.

   The question is asked; "How serious are these conflicts of interest charges?". Apparently, the controversy could give, "impetus to a growing movement in Congress pushing legislation to repeal HAMP." A group of Congressmen say that HAMP, "is a costly, abject government failure that has more to do with political atmospherics than mortgage modifications, only 500,000 permanent loan modifications done to date at great taxpayer cost, says Sen. Demint." Incidentally, "that's a fraction of the Administration’s stated goal of reaching up to four million."

   Criticizing HAMP for, Neil Barofsky, the Special Inspector General for the Treasury’s Troubled Asset Relief Program, criticized HAMP and says that "failed trial modifications often leave borrowers with more principal outstanding on their homes", adding there is "near universal agreement that the program has failed to meet its goals." Additionally, Sen. Coburn says in a statement that HAMP "has done nothing but string alone homeowners and increase their hardship." Some borrowers have seen their credit scores worse, and under HAMP, more mortgage modifications have failed than been successful.

   HPF strongly agrees that they have checks and balances to stop mortgage servicers from influencing the advice they give on the phone, and that they focus on, "ensuring that the homeowner knows the counselor is on their side, seeking the best possible resolution of their problem". "Staying neutral between borrowers and lenders who back the nonprofit seems to be uppermost on the minds of HPF officials.", say the story.

   The most important factor that was pointed out here, was that both HAMP and HPF are voluntary programs, and that "No government official can force a loan modification on any borrower, lender or servicer", and thus, the "bottom line here is, HPF, HAMP, Treasury or HUD cannot pressure servicers to modify loans."

   Overall, it is a mess of Red Tape, some of it intertwined and just mangled. Bureaucracy at work. Love it or hate it, America is America, and we always emerge stronger from anything hurled at us!

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

The Mortgage Interest Deduction Could Be Going Away

Hi Everyone,

   Welcome to another Friday ! Today, we have an important item to make you aware of, if you have not already heard about it.

   One of the most beneficial aspects of purchasing Real Estate is the deductibility of interest payments on the mortgage, however, that benefit could soon be erased from our tax code. The following Blog Post has been assembled from information provided by Ruth Potter of SaveMyMID.info, which is enlightening the Public on this real possibility, along with information she has provided from the National Association of Home Builders.

   In 1913, the Government introduced the Federal Income Tax, and ever since that time, they have used the tax code to encourage home ownership. One such incentive is called the Mortgage Interest Deduction, or "MID".

   The Mortgage Interest Deduction helps make home ownership more affordable, and it does this by allowing homeowners to deduct the interest that they pay on the mortgage for their home when calculating their annual Federal Income Tax. However, as the Federal Deficit looms, the Mortgage Interest Deduction is under fire, as a result of the effort to reduce the Deficit.

   Therefore, proposed changes to the tax code would have a dramatic impact on homeowners and would significantly reduce the value of this deduction. You might have heard the Mortgage Interest Deduction referred to within the same topic as the Alternative Minimum Tax (AMT), another hotbed of debates and discussions.

   The income tax deductions for mortgage interest and real estate taxes primarily benefit middle class taxpayers with incomes between $50,000 and $200,000 (according to the findings of a study by the National Association of Home Builders), contrary to assertions by some economists.

   Taxpayers earning under $200,000 per year pay 43% of all income taxes, however, they receive 68% of the total benefit of the Mortgage Interest Deduction, along with 77% of the total benefit of the real estate tax deduction.

   Additionally, larger benefits go to larger households and families, such as those with children, and as a share of household income, larger benefits are collected by families with less than $200,000 income, indicating that these tax rules make the tax system more progressive.

   According to the National Association of Home Builders, or NAHB, research reveals that tampering with the Mortgage Interest Deduction would have a disproportionate impact (as a share of household income), on younger home owners. Therefore, this is some very important information for you to digest.

   What can you do? Tell your Senator. Tell your Congress Representative. Let them know how you feel about this.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #mortgageinterestdeduction #MID #AMT

Viewpoints on Fair Housing in our Current Economy

Hi Folks,

   Hope you're having a stellar week.

   Today, we'd like to touch briefly on the topic of Fair Housing. The Office of Fair Housing and Equal Opportunity (FHEO), "administers and enforces federal laws and establishes policies that make sure all Americans have equal access to the housing of their choice.", as defined on the website for the Department of Housing and Urban Development (HUD).

   Kevin Cochrane, a former President of Community Lending for one of the largest savings banks in the U.S., was responsible for all of the bank's nationwide low and moderate income lending programs as well as all fair housing and outreach programs. Cochrane says that Fair housing is, "really a function of banks' use of the Community Reinvestment Act (CRA).", and that, "While that legislation benefits many individuals, it also creates many pitfalls and issues both from a low income and fair housing standpoint, as well as ethnocentric and geographic discrimination."

   Pablo Solomon, an Artist & Designer, who has been studying the Fair Housing topic for several years, feels that "misguided/abused Fair Housing issues are at the root of this current economic crisis".

   Solomon points to the biggest issue, in his opinion, as, "how to insure Fair Housing without instigating socialist housing.". "How we insure that all qualified buyers are treated fairly", he says, while keeping, "welfare crooks" from scamming the system is a "Gordian knot at best.", says Solomon

   Additionally, Solomon says that one of the problems is that making housing, "ridiculously affordable to unqualified low income people, fuels and inflates the housing market and every one from appraisers, to tax and spend politicians, to builders, to agents, to home decorators, etc. benefit from creating a bubble."

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com


TAGS #fairhousing #equalopportunity #lowincome