May 8, 2017

There’s No Upside For Us To Depress The Market

A report from Loop North News. “Housing advocates nationwide are turning their noses up at President Donald Trump’s proposed tax plan which would double the standard deduction and, in effect, invalidate the tax benefits of owning a home. ‘Real estate now accounts for more than 19 percent of America’s gross domestic product, or more than $3 trillion in investment,’ said William Brown, president of National Association of Realtors (NAR). ‘For roughly 75 million homeowners across the country, their home is more than just a number. A home represents their ambitions, their nest egg, and the place where memories are made with family and friends. Targeted tax incentives are in place to help people get there.’”

“In addition, Brown pointed to the majority share of federal income taxes paid by homeowners, cautioning that they could shoulder even more responsibility if the changes take effect. Without tax incentives for homeownership, those numbers could rise even further, NAR forecasts. ‘As it stands, homeowners already pay between 80 percent and 90 percent of the U.S. federal income tax,’ said Brown.”

From “HomePath properties and the 2008 housing crisis go hand in hand. Until the housing bubble burst in 2008, the Federal National Mortgage Association, aka Fannie Mae, had one main job: to keep mortgage money flowing to help Americans fulfill their dreams of homeownership.”

“Then the Great Recession happened, and as 4 million homes went into foreclosure, Fannie Mae suddenly (and somewhat reluctantly) became the country’s largest homeowner. To find new owners for those properties, Fannie Mae created HomePath, a program that sells foreclosures to eager buyers. ‘It’s important for us not to give away the farm,’ says Julia Dugger, Fannie Mae’s director of marketing and agent performance, correcting a common misconception that HomePath properties are rock-bottom bargains. ‘There’s no upside for us to depress the market further.’”

From KATU in Oregon. “An abandoned, bank-owned home at the corner of Northeast 90th and Going is being renovated by a local real estate company and will soon be listed for sale. For months, the home was the source of crime, delinquency and frustration. Squatters moved in, drug use increased and trash accumulated. According to public records, Weichert Realtors purchased the home on Northeast 90th and Going for $175,000. A realtor says the new listing price will likely be listed for upwards of $300,000.”

“Neighbors don’t care how much it costs — the problems are gone. ‘It lost all of this plumbing, it lost all of its wiring,’ neighbor Evan Burton said. ‘Somebody came in and fixed it up, and they’re flipping it or they’re doing whatever, but whoever moves into that house is going to love this neighborhood!’”

“Portland police says there are about 1,000 ‘nuisance properties’ citywide.”

The San Bernardino American. “Most economists agree that the Great Recession, sparked by the housing market crash, officially ended in 2009, but the fallout from the crisis will continue to hurt Black families, especially Black homeowners, for decades to come, according to a new report commissioned by the American Civil Liberties Union. The report continued: ‘The fact that blacks hold the bulk of their wealth in home equity likely explains, at least in part, why black wealth, on a percentage basis, declined more than white wealth during the housing bust and subsequent Great Recession.’”

“And while the typical Black family shed another 13 percent of their non-home-equity wealth, from 2009-2011, White families, on average, saw their home-equity wealth losses ’slow to zero.’ ‘Not only were Black homeowners devastated by the housing market collapse, they are now being left behind,’ said Rachel Goodman, a staff attorney with the ACLU’s Racial Justice Program. ‘It is very much a tale of two recoveries.’”

“‘While White home equity began to recover quickly after the housing crisis stabilized, this was not the case for Blacks,’ the report said. ‘This difference likely emerges as a result of Blacks’ disproportionate exposure to predatory loans and other deceptive mortgage schemes.’”

The Tahoe Daily Tribune. “Simply put — this is a great time to purchase a house in beautiful Lake Tahoe! The rising cost of housing is a constant battle here, with rents seeming to rise continually. Competition for housing is so fierce that throughout California the media sites a ‘housing shortage.’ Ideally you could be paying your own mortgage and not your landlord’s, all the while receiving some great tax deductions. Because there are so many loan programs available, it is an optimal time to purchase. I recently closed a house on an FHA (Federal Housing Administration) loan for a local family whom I am happy to say will no longer will have to rent.”

“‘The best thing about being a home owner in Tahoe is that we are investing in our future and in a place where we vacationed previously. The children are elated because there are so many adventures close to home — I highly recommend buying now. The monthly cost associated with a mortgage is very close to rental prices — it only made sense to buy and put our money back into our pockets instead of paying someone else’s mortgage,’ says Bridgit Brockett.”

“Ryan Loeb, a lender for Luxury Mortgage Corp., closed the FHA loan for the Brocketts and has been in business for over 20 years. His advice is to get pre-approved rather than pre-qualified. This is so you definitively know the loan amount for which you will be approved. ‘You will be surprised how many areas in California are eligible for no money down with a USDA loan. This is by far the best home loan product on the market and their site does a great job explaining how the loan works and to address any false information people have heard about the program. My company hired … two of the five people that started this loan program for lenders (called 502 Guaranteed USDA loan) and helped us get this partnership with them,’ commented Loeb.”

“Another great option for a first time home buyer is an FHA loan. The basic eligibility requirements for an FHA loan include: 3.5 percent down payment required with own funds or a gift from a relative. 620 credit scores or above (exceptions can be made down to 550). Debt to income ratios cannot exceed 55 percent.”

“I know it is all a lot to absorb, but locals there are many great options out there to purchase a home and truly become a local and settle down here in Tahoe. If you would like these lenders contact information, please contact me. Also when you are ready to buy I am a local Realtor who would love to guide you through the process and get you your own Tahoe home.”