The U.S. Treasury Department on Monday released a plan to speed up and encourage Short Sales as a means to help families avoid foreclosure. We’ve been offering Short Sale proposals to public officials for over a year, and although the new guidelines aren’t everything we were hoping for, they do represent a significant improvement over the current situation.

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

Here’s an initial Reuters news story outlining the new policies.

As we’ve said throughout 2009, the key is to become experts in the process. We expect a tremendous increase in Short Sales during the coming year, and it’s vital that RE/MAX Associates continue to lead the industry in Distressed Property skills and training.

At RE/MAX International, our staff is quickly developing resources to help you understand the new Short Sale guidelines and explain them to your buyers and sellers.

Be sure to open the Mainstreet Link e-mail you receive tomorrow. It will contain the latest news and details about the Treasury plan, as well as video and print materials you can add to your marketing presentations. We’re also putting consumer information on remax.com and will be communicating ongoing developments via Facebook and Twitter.

Thank you.

Dave Liniger
RE/MAX International Chairman and Co-Founder

The first article entitled, “Some Real Estate Markets are Heating Up” is an interesting read. While the Floridal real estate market has taken a big hit on pricing, we in the midwest and particularly Northern Illinois have not suffered such a dramatic loss. In fact, the number of homes under contract is up significantly in our area. Call me or email me for more details… jen.conte@att.net or 630-408-6400. Watch here for more stats on positive signs of a real estate rebound!

NEW YORK (CNNMoney.com) — There’s a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama’s signature on Tuesday. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes, Billings would get back the $8,000 plus what he’d overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate’s proposal of a $15,000 non-refundable credit for all homebuyers.

“[The Senate version] would have done a lot more to turn around the housing market,” said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). “We have a lot of reports of people who would be coming off the fence because of it.”

Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” Yun said.

Who won’t benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle – they still have to close the sale before claiming the bonus.

One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB’s Dietz.

Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.

And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home – a lawnmower, a rug, a sofa – and, in that way, help stimulate the economy.

This article was sent to me by:

DALE NOBLE
Mortgage Consultant, Mortgage
Wells Fargo Home Mortgage
M2968-012
4332 Fox Valley Center Dr
Aurora, IL  60504
(630) 820-5221 Tel
630-878-5012 Cell
866-359-5903 Fax
dale.noble@wellsfargo.com
www.ilendfast.com

 If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn around in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence. If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.

I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes. I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill.

You can go to the official Senate and House web sites to locate the email and phone number of your legislators. This may be one of the most critical moments for the real estate industry in our time. Please pass this information on to anyone you might do business with. The outcome of this legislation will have a lasting impact on us all. I appreciate your assistance on this urgent matter. Thank you.

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Copyright 2009 RE/MAX International, Inc. 5075 S. Syracuse Street | Denver, Colorado 80237

Chicago home prices down less than U.S. in Nov.

(AP) — Chicago home prices fell in November but not as much as prices nationwide, which a widely watched index shows dropped by the sharpest annual rate on record.

But the silver lining might be that more families can finally buy a home for the first time in years. Falling home prices coupled with lower interest rates have shaved hundreds of dollars off monthly mortgage payments, and that is luring buyers back into the market, new data this week showed.

The Standard & Poor’s/Case-Shiller 20-city housing index released Tuesday tumbled by a record 18.2 percent from November 2007, the largest decline since its inception in 2000.

Chicago prices fell 12.5 percent compared with November 2007 and 2.8 percent compared with October 2008, the S&P/Case-Shiller data show.

Both the 20- and 10-city indices have recorded year-over-year declines for 23 straight months. Prices are at levels not seen since February 2004.

But the numbers may not be as ugly at second glance, according to Patrick Newport, an economist with IHS Global Insight.

“If you adjust for inflation, they’re not record declines,” Newport said. “Home prices are still dropping at about a 20-percent clip, but it’s not as bad as it’s been in last six months.”

But the recession and sweeping job losses don’t bode well for a near-term turnaround in housing prices. Newport estimates prices will drop another 10 percent to 15 percent this year.

In fact, Americans’ mood about the economy darkened further in January, sending a widely watched barometer of consumer sentiment to a new low, the Conference Board said Tuesday.

The National Association of Realtors said Monday that the median home price fell a record 15 percent last month to $175,400, down from $207,000 a year ago. That led to a surprising jump in sales from November’s level.

With current interest rates and a 10 percent down payment, anyone who buys a median-priced home now would save $254 a month compared with the median price and interest rate of a year ago.

The Realtors’ home affordability index in November showed its best reading since 1993.

“I bet when they incorporate December’s numbers,” Newport said, “it will show housing is as affordable as it was in 1973.”

Source: Barbara Corcoran

Updated: 10:34 a.m. ET Jan. 26, 2009

© 2009 MSNBC.com

URL: http://www.msnbc.msn.com/id/28818023/?pg=8#TDY_RealEstateMyths

Dear Friends,

HAPPY NEW YEAR!

As you have no doubt noticed, nearly everyone has an opinion about the state of the real estate market. The most vocal opinions are being expressed on television, on the Internet, in print media and on the radio. The problem is that many of these opinions tell only one side of the story.

Two articles were published in the Daily Herald newspaper on Sunday, January 4^th which talked about how THIS is the best real estate market for buyers since the 1970s because of the extremely low interest rates and the reduced prices on homes for sale.  A few years back, I can remember showing houses to clients who only had 5 or 6 properties to choose from in their price range because there was so little inventory.  That is certainly not the case today!  These lower home prices and large inventories make this an ideal market for first-time homebuyers, people looking to move up to a larger home, and real estate investors.  I am very optimistic about the opportunities that this market presents to us all.    

I know many of you enjoy the facts, figures and statistics of the market, and if you would like specific data about your own property, please feel free to call me anytime as I would be happy to give you an updated market analysis.

The first Item of Value of the New Year reviews the state of the real estate market.  On the reverse side are tips on selling your home faster, the best ways to invest in your home, and a look at historic home values to prove that your home is the best long-term investment.   Additionally, I have enclosed a list I came across recently from Crain’s Chicago Business that details the 25 largest employers in the six-county Chicagoland area.  I found this very interesting, and I thought it might be useful for anyone looking for new job opportunities.

I hope you had a great 2008, and I look forward to serving you in 2009!  Don’t forget to call me for all of your real estate needs.  I also have contacts in the commercial real estate industry and access to a network of Realtors around the United States.  Take care and I will be in touch.

Sincerely,

Jen Conte

Attachments:

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