Financial Services Committee Will Markup Bills to Terminate Failed Programs

Thought you might find this interesting. Also, here's a link to my blog post from last Nov. about loan mods.

WASHINGTON: Financial Services Committee Chairman Spencer Bachus announced a subcommittee hearing and full committee markup of four bills that will terminate failed and ineffective housing foreclosure programs.

The four proposals – which terminate the troubled Home Affordable Modification Program (HAMP), the Neighborhood Stabilization Program, the FHA Refinance Program, and the Emergency Homeowner Relief Fund – will be the subjects of a hearing on March 2 by the Insurance, Housing and Community Opportunity Subcommittee and a full committee markup on March 3.

“In an era of record-breaking deficits, it’s time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners,” said Chairman Bachus. “These programs may have been well-intentioned but they’re not working and, in reality, are making things worse.”
Insurance and Housing Subcommittee Chairman Judy Biggert said: “We need to break down barriers that have delayed the housing recovery, including expensive and ineffective government programs that have failed to helphomeowners. Unfortunately, these programs were set up in haste, executed poorly, and have done little to restore stability in the marketplace. A government program that spends more to save a single borrower than it costs to buy a home is no help at all – it’s just a waste of taxpayer money. We need to stop funding programs that don’t work with money we don’t have.”
The Committee will consider the following bills:
The HAMP Termination Act. The Obama Administration’s signature anti-foreclosure effort, the Home Affordable Modification Program (HAMP), has failed to help a sufficient number of distressed homeowners to justify the program’s cost. According to the Administration, HAMP was supposed to help 4 million homeowners. Instead, only 521,630 loans have been permanently modified under this program and the re-default rate is high. To date, the Administration has spent approximately $840 million of the $29 billion earmarked for HAMP from the Troubled Asset Relief Program (TARP).

Far from helping at-risk homeowners, HAMP has actually made many worse off, according to a report from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP):

People who apply for modifications via HAMP sometimes “end up unnecessarily depleting their dwindling savings in an ultimately futile effort to obtain the sustainable relief promised by the program guidelines. Others, who may have somehow found ways to continue to make their mortgage payments, have been drawn into failed trial modifications that have left them with more principal outstanding on their loans, less home equity (or a position further ‘underwater’), and worse credit scores. Perhaps worst of all, even in circumstances where they never missed a payment, they may face back payments, penalties, and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent. While it may be true that many homeowners may benefit from temporarily reduced payments even though the modification ultimately fails, Treasury’s claim that ‘every single person’ who participates in HAMP gets ‘a significant benefit’ is either hopelessly out of touch…or a cynical attempt to define failure as success.”
(Office of the Special Inspector General for the Troubled Asset Relief Program)

In a separate report, the SIGTARP noted HAMP “continues to fall dramatically short of any meaningful standard of success.”

(Office of the Special Inspector General for the Troubled Asset Relief Program)
The HAMP Termination Act ends the Treasury Secretary’s authority to provide new assistance under the program but preserves assistance already offered to homeowners through HAMP prior to the bill’s enactment.

The Neighborhood Stabilization Program Termination Act. Congress has appropriated $7 billion for the Neighborhood Stabilization program, including $2 billion in the Obama Administration’s stimulus plan. Two rounds of NSP funding have already been provided to states and localities. The Neighborhood Stabilization Program Termination Act ends the program and rescinds the unobligated third round of funding of $1 billion.

Critics have argued that the NSP does not benefit at-risk homeowners facing foreclosure, and may instead create perverse incentives for banks and other lenders to foreclose on troubled borrowers – arguably worsening the housing crisis.

The FHA Refinance Program Termination Act terminates the program and rescinds unobligated funding. The price tag for this program is $8.12 billion, of which only $50 million has been disbursed thus far. For this large outlay, the taxpayers have seen minimal return on their investment. As of December 13, 2010, only 35 applications had been submitted for this program.

The Emergency Mortgage Relief Program Termination Act ends the program and rescinds unobligated funding. The Dodd-Frank Act reauthorized the long-expired Emergency Homeowners’ Relief Act of 1975 and provided $1 billion to authorize HUD to make emergency mortgage relief payments to homeowners facing foreclosure for up to 12 months, with a possible extension of another 12 months. These loans will serve to increase the amount of the borrower’s indebtedness, so a borrower who is unable to pay back either the original amount of principal or the additional loans made under the program will be worse off in the long run.


The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

Merscorp Lacks Right to Transfer Mortgages, Judge Says - Bloomberg

Thought you might find this repost from Bloomberg interesting. Throws another wrench in the foreclosure process.

Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said.

U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,” wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages.

“MERS’s theory that it can act as a ‘common agent’ for undisclosed principals is not supported by the law,” Grossman wrote in a Feb. 10 opinion. “MERS did not have authority, as ‘nominee’ or agent, to assign the mortgage absent a showing that it was given specific written directions by its principal.”

Merscorp was created in 1995 to improve servicing after county offices couldn’t deal with the flood of mortgage transfers, Karmela Lejarde, a spokeswoman for MERS, said in an interview last year. The company tracks servicing rights and ownership interests in mortgage loans on its electronic registry, allowing banks to buy and sell the loans without having to record the transfer with the county. It played a major role in Wall Street’s ability to quickly bundle mortgages together in securitized trusts.

MERS was still reviewing Grossman’s decision and didn’t have an immediate comment, Lejarde said in an e-mail Feb. 11. Lejarde didn’t immediately respond to an e-mail seeking comment today.

Proper Status

“‘Don’t come around here no more,’ is basically the message to MERS,” said April Charney, a senior attorney with Jacksonville Area Legal Aid in Jacksonville, Florida. “The judge basically deconstructed MERS and said there’s no possible way in any case you can come in and show you have this appropriate proper status to transfer the note.”

“MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage-recording process,” Grossman wrote. “The court does not accept the argument that because MERS may be involved with 50 percent of all residential mortgages in the country, that is reason enough for this court to turn a blind eye to the fact that this process does not comply with the law.”

Automatic Shield

In the case Grossman ruled on, Credit Suisse Group AG’s Select Portfolio Servicing, a mortgage servicer, sought to bypass the automatic shield against legal claims triggered by Ferrel L. Agard’s filing for personal bankruptcy in September.

Select Portfolio wanted permission to foreclose on Agard’s home in Westbury, New York, on behalf of U.S. Bancorp’s U.S. Bank unit, the trustee for the mortgage-backed trust the home loan was in. The house is worth about $350,000 and the mortgage amount was $536,921, according to the decision.

Grossman ruled in favor of Select Portfolio because he couldn’t overrule a November 2008 foreclosure judgment the servicer won in state court, he said. Without that state-court ruling, Select Portfolio wouldn’t have had the right to bring its motion, Grossman said.

He then addressed whether a mortgage transfer by MERS is valid, because “MERS’s role in the ownership and transfer of real-property notes and mortgages is at issue in dozens of cases before this court,” including those where “there have been no prior dispositive state-court decisions,” he wrote.

Original Lender

Select Portfolio argued in part that MERS’s February 2008 assignment of the mortgage to U.S. Bank was valid because Agard agreed that MERS would hold title to it for the original lender,Bank of America Corp.’s First Franklin, and for whichever banks it was further assigned to. First Franklin transferred the promissory note the mortgage secured to Lehman Brothers Holdings Inc.’s Aurora Bank and Aurora to U.S. Bank, according to the decision.

“An adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders which do business with MERS throughout the United States,” Grossman wrote. “It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”

MERS intervened in the case and argued that Agard’s mortgage, the terms of its membership agreement and New York state law gave it the authority to assign the mortgage. MERS says it holds title to mortgages for its members as both “nominee” and “mortgagee of record.”

Select Portfolio

Grossman said Select Portfolio had to show that U.S. Bank owned both the note and the mortgage, and there was no evidence that it held the note. The judge disagreed with Select Portfolio’s argument that U.S. Bank held the note because the note “follows” the mortgage, which it said U.S. Bank owned.

“By MERS’s own account, the note in this case was transferred among its members, while the mortgage remained in MERS’s name,” Grossman wrote. “MERS admits that the very foundation of its business model as described herein requires that the note and mortgage travel on divergent paths.”

The judge said that the membership agreement wasn’t enough to assign the mortgage and that to do so the lender would have to give power of attorney or similar authority to MERS.

MERS’s membership rules don’t create “an agency or nominee relationship” and don’t clearly grant MERS authority to take any action with respect to mortgages, including transferring them, Grossman wrote. Because the interests at issue concern “real property” -- land and buildings -- under state law, any transfer has to be in writing, which isn’t done under the MERS system, he said.

‘Nominee’ Status

“Without more, this court finds that MERS’s ‘nominee’ status and the rights bestowed upon MERS within the mortgage itself, are insufficient to empower MERS to effectuate a valid assignment of mortgage,” the judge wrote. “MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.”

Grossman said parties coming to him to seek to lift the automatic ban on legal claims in cases involving MERS will have to show they own both the mortgage and the note.

The case is In re Agard, 10-77338, U.S. Bankruptcy Court, Eastern District of New YorkCentral Islip).

To contact the reporter on this story: Thom Weidlich in Brooklyn, New York, federal court attweidlich@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

Is This Going To Be A Scary Ride?

This is a repost from Feb. 11th on the ACAR Watercooler Blog. 

January sales were 339 in Ada County, an increase of 21% over January 2010. This level of sales is what we were experiencing in 2008.

Historically, January sales are the lowest of the year. In January 2010 we started with 279 sales and marched strongly upward through the end of April. We experienced a slowing after the tax credit expired, but rallied in the fall to finish the year strongly.

Of our total sales in January…slightly less than 59% were distressed….down 2% from December 201. (Short sales 20% and REO’s 38%). Distressed sales continue to dominate the market as Boise was recently recognized again in the national press for our large number of foreclosures.

A bright spot is our pending sales – they jumped 25% from 575 in December to 720 in January. The percentage of pending sales in distress rose 2% from December totaling 56% overall.

The number of houses available at the end of January showed its first mild increase since a blip at the beginning of the peak selling season. We have the same number of homes for sale as we did in April 2006…2,711. We are beginning the year with 843 fewer homes for sale than in January 2010.

At the same time, the percentage of active inventory that is distressed remained essentially unchanged from December’s at 44%. In Ada County we have 6.4 months of inventory on hand. The price categories in shortest supply are equally distributed between $100K-$250, with the fewest in the $100,000 to $119,000 range.

Separating New Construction from Existing Homes and the numbers are more interesting. Existing Homes inventory is below 5 months in several price categories.

The January median home price dropped $9,500 from December, an 18% decrease from January 2010. This supports the lack of inventory in the $100-119k range, as those are the homes that were mostly sold.

New Homes median price for January 2011 was $211,000, an increase of almost 10% from January 2010. Remember you read it here first…2011 will be a good year to be selling new homes.

So where do we start this second year of recovery… We continue to “benefit” from inventory lower than national average. The bad news is a high percentage continues to be distressed property. With inventory this low, and not likely to increase quickly, prices should stabilize, but not if the number of distressed properties continue to grow.

Median home price for existing homes continues to bounce along the bottom and shows no real sign of improvement, a victim of the unusually high levels of distressed properties.

This is a repost from Feb. 11th, 2001 from the ACAR Watercooler Blog.

We seem to be at the beginning of a transition in consumer expectations in home purchase.

New Federal policies on the role of the GSE’s in the mortgage market will have a long term, and perhaps, immediate effect, likely to benefit lenders over consumers.

Banks are lobbying for higher down payments – as much as 30% – which cannot have anything but a negative impact on home buyers.

The desirability and availability of new homes that don’t carry the baggage of short sales and REOs may eclipse the historical consumer preference for existing (used) homes.

This shift in preference could also provide a secondary benefit…more jobs.

Unemployment numbers improved in the last couple of weeks. We’ve known all along that jobs will drive home sales more than any other single variable.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

U.S. Home Foreclosures Down 17% Year-Over-Year in January

Thought you might like some good news for a change. This is repost from The Real Estate Channel. Posted by Alex Finkelstein 02/10/11.

The nation's home foreclosure Ferris wheel continues to circle, up one month, down another.


This time around, data for January 2011 showed up better than for the same 2010 month, according to Irvine, CA-based RealtyTrac. But January's numbers were still 1% higher than December 2010.


"We've now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000," said James J. Saccacio, chief executive officer of RealtyTrac.


"Unfortunately this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing."


RealtyTrac today released its U.S. Foreclosure Market Report™ for January 2011, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 261,333 U.S. properties in January.


The report also shows one in every 497 housing units received a foreclosure filing during the month.


Foreclosure Activity by Type


A total of 75,198 U.S. properties received default notices (NOD, LIS) in January, a 1 percent decrease from the previous month and a 27 percent decrease from January 2010 -- the 12th straight month where default notices decreased on a year-over-year basis. January was also the fourth straight month where default notices decreased on a month-over-month basis, giving it the lowest monthly total for default notices since July 2007.


Default notices in states with a non-judicial foreclosure process (NOD) increased less than 1 percent from the previous month but were down 8 percent from January 2010, while default notices in states with a judicial foreclosure process (LIS) decreased 2 percent from December and were down 39 percent from January 2010.


Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 108,002 U.S. properties in January, a 4 percent decrease from the previous month and a 13 percent decrease from January 2010. It was the lowest monthly total for scheduled foreclosure auctions since February 2009.


Scheduled non-judicial foreclosure auctions (NFS) decreased 1 percent from December and were down 3 percent from January 2010, while scheduled judicial foreclosure auctions (NTS) decreased 14 percent from the previous month and were down 39 percent from January 2010.


Lenders foreclosed on 78,133 U.S. properties in January, up 12 percent from the previous month but still down 11 percent from January 2010. Bank repossessions (REO) in non-judicial foreclosure states increased 23 percent from December but were still down 9 percent from January 2010, while bank repossessions in judicial foreclosure states decreased 7 percent from the previous month and were down 16 percent from January 2010.


Nevada, Arizona, California post top state foreclosure rates


Nevada bank repossessions increased 16 percent from the previous month, helping the state maintain the nation's highest state foreclosure rate for the 49th straight month -- despite month-over-month decreases in default notices and scheduled auctions. One in every 93 Nevada housing units received a foreclosure filing in January -- more than five times the national average.


One in every 175 Arizona housing units received a foreclosure filing in January, the nation's second highest state foreclosure rate. Arizona foreclosure activity increased 16 percent from the previous month -- driven by a 54 percent month-over-month increase in REOs -- but was still down 25 percent from January 2010.


California REO activity increased 32 percent from the previous month, and the state posted the nation's third highest state foreclosure rate, with one in every 200 housing units receiving a foreclosure filing.


Idaho posted the nation's fourth highest state foreclosure rate, with one in every 241 housing units receiving a foreclosure filing, while Utah posted the nation's fifth highest state foreclosure rate, with one in every 265 housing units receiving a foreclosure filing during the month.


Other states with foreclosure rates ranking among the top 10 in January were Michigan, Georgia, Illinois, Florida and Colorado.


Five states account for more than 50 percent of national total


With 67,072 properties receiving a foreclosure filing, California accounted for more than 25 percent of the national total in January. After hitting a 25-month low in November, California foreclosure activity has increased on a month-over-month basis for two straight months.


Florida foreclosure activity decreased on a month-over-month basis for the fourth straight month, but the state's 21,671 properties receiving a foreclosure filing in January -- a 42-month low -- was still the second highest in the nation.


Michigan foreclosure activity increased for the second straight month, and the state posted the nation's third highest total, with 16,716 properties receiving a foreclosure filing in January.


Arizona posted the nation's fourth highest total, with 15,757 properties receiving a foreclosure filing, while Texas posted the nation's fifth highest total, with 14,897 properties receiving a foreclosure filing during the month.


Other states with foreclosure activity totals among the nation's 10 highest in January were Illinois (13,164), Georgia (12,772), Nevada (12,263), Ohio (8,924) and New Jersey (5,526).


Top 10 metro rates in Nevada, California, Arizona, while Florida metros drop


With one in every 82 housing units receiving a foreclosure filing in January, the Las Vegas-Paradise, Nev., metro area maintained the nation's highest foreclosure rate among metropolitan areas with a population of 200,000 or more. Las Vegas foreclosure activity decreased nearly 13 percent from the previous month and increased less than 1 percent from January 2010.


The other Nevada metro area in the top 10 was Reno-Sparks, at No. 5 with one in every 132 housing units receiving a foreclosure filing.


Seven California metro areas posted foreclosure rates in the top 10, led by Modesto, at No. 2 with one in every 111 housing units receiving a foreclosure filing; Stockton, at No. 3 with one in every 114 housing units receiving a foreclosure filing; and Riverside-San Bernardino-Ontario, at No. 4 with one in every 120 housing units receiving a foreclosure filing.


Other California metro areas with foreclosure rates in the top 10 were Vallejo-Fairfield at No. 6 (one in 135 housing units); Bakersfield at No. 7 (one in 143); Merced at No. 9 (one in 149); and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 151). Sacramento was the only California metro area in the top 10 to report increasing foreclosure activity on a month-over-month and year-over year basis.


With one in every 143 housing units receiving a foreclosure filing in January, the Phoenix-Mesa-Scottsdale metro area posted the nation's eighth highest metro foreclosure rate.


No Florida cities showed up in the top 20 metro foreclosure rates in January. In contrast the state accounted for nine of the top 20 metro foreclosure rates in 2010.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

MID Facts: Who's Hurt Most by Curbs?

Here's a link to an interesting video from NAR's website regarding the Mortgage Interest Deduction issue.

President Obama Silent on MID 

President Obama's January 25 State of the Union address made no mention of the mortgage interest deduction (MID). The President did express interest in pursuing reforms that would improve the competitive position of Corporate America. Those reforms would not affect the MID. While the President did reference the Deficit Commission report, he did not specifically embrace any of its recommendations. (That report recommended reducing the $1 million cap to $500,000, eliminating the MID for second homes and converting the deduction to a 12% tax credit.) Moreover, the President did not express an intent to lead a battle for individual tax reform, but rather appeared to leave the details of any individual reforms to Congress. The MID is part of the individual income tax. 

NAR's Homeownership Matters (HOM) campaign is poised to mount a campaign should formal proposals emerge that would reduce the value of the MID. 


Reposted from NAR Website


Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

Bieter touts Boise Whole Foods project, defends the process

Here's a repost from Kevin Richert's Blog from The Idaho Statesman on 2/3/2011

The Whole Foods and Walgreen's project will provide a "huge lift" to the east end of Downtown, Boise Mayor Dave Bieter said.

The project, first proposed in 2007, received City Council approval Tuesday. But in his weekly e-memo to constituents, Bieter bristled at criticisms about the project's timeframe.

Wrote Bieter: "Although the Whole Foods project was first proposed in 2007, the developer had put it on the back burner for economic reasons. A revised proposal was presented to the city's Planning and Zoning Commission last October. Four months from application to final approval of a project of this size and complexity is actually pretty brisk.

"And though aspects of the project failed to win approval the first time around, commissioners and city staff worked hard to find compromises to make the project work. These weren't meaningless delays; they were part of a process to ensure that every development fits the surrounding neighborhood, traffic patterns, and all of the other important factors that go into preserving and enhancing our livability."

Here's the full e-memo:

As you might have heard, the Boise City Council this week gave final approval to the Whole Foods/Walgreen's project on Broadway between Front and Myrtle.

This is a big deal — and not just to the many devoted fans of Whole Foods. It's a well-designed, mixed-use development, one that will provide a huge lift to an area at the east end of downtown that has been in the doldrums far too long. Construction of the two stores is scheduled to start by this summer, with completion sometime next year. That means more jobs, both short- and long-term, at a time when employment remains one of our most stubborn economic challenges.

Good news in every way. But I have to disagree with the way some have described this process — that Tuesday night's Council action was a "final hurdle," cleared after "months of delays."

In fact, although the Whole Foods project was first proposed in 2007, the developer had put it on the back burner for economic reasons. A revised proposal was presented to the city's Planning and Zoning Commission last October. Four months from application to final approval of a project of this size and complexity is actually pretty brisk.

And though aspects of the project failed to win approval the first time around, commissioners and city staff worked hard to find compromises to make the project work. These weren't meaningless delays; they were part of a process to ensure that every development fits the surrounding neighborhood, traffic patterns, and all of the other important factors that go into preserving and enhancing our livability.

Economic development is one of my top priorities as mayor. I've pushed our planners and inspectors hard to streamline their systems, to put customer service first, and to start with the presumption that the answer is "yes."

We still have room for improvement, but I'm pleased to see projects moving forward — not just Whole Foods, but JUMP and others that could be announced in weeks to come. Our goal is not only to do all we can to help new development happen, but also to ensure that it's high-quality, compatible development that will be an asset to the community for many years to come. With this project, we succeeded.

Our mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. We handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs. 



Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles:     
 

Realtors® Reflect on 2010; Ready for 2011

I thought this might of interest to our readers.


Repost from NAR Website

2010 has been a year of real estate contrasts. While many consumers have taken advantage of historic buying opportunities and the market has seen a gradual stabilization of sales and prices, other challenges facing the nation have led some to question the value of home ownership for families, communities, and the country.

“People are passionate about the American dream of home ownership, and this passion underscores how important home ownership is to our nation,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Owning a home has long-standing government support in this country because home ownership benefits individuals and families, strengthens our communities, and is integral to our economy. As we begin a new year, REALTORS® remain committed to ensuring that our public policies promote responsible, sustainable home ownership for all of our futures.”

In the first half of the year, the extended $8,000 first-time home buyer tax credit and expanded home $6,500 tax credit for repeat buyers helped encourage sales and stabilize home prices. Home buyers in 2010 have also benefited from historic affordability levels, with the combination of record low mortgage rates coupled with rising household incomes. The NAR Housing Affordability Index currently shows that a median-income family with a down payment of 20 percent has 184.2 percent of the income required to purchase a median-priced home.

“Low interest rates mean real money for today’s home buyers,” said Phipps. “Buyers who purchased a median-priced home five years ago with an FHA mortgage requiring a 3 percent down payment would have a monthly mortgage payment of $1,650. With today’s interest rates and median home prices, that same buyer would pay $1,150 per month – a $500 savings. That’s a savings of $6,000 per year.”

Despite record affordability and buyer incentives, rising foreclosure rates and concerns about proper foreclosure procedures led some to question whether owning a home was a good personal decision.

“Home ownership didn’t create the foreclosure crisis – Wall Street greed and irresponsible lending practices did,” said Phipps. “The decision to own a home is a very personal one, but over the long term, owning a home is one of the best ways to build long-term wealth, in addition to providing numerous social benefits that include reduced crime rates, improved childhood education, and increased stability. After all, a fixed-rate mortgage might last 15 to 30 years; renting is forever.”

Government support of programs and initiatives that encourage home ownership have also been called into question. The deductibility of mortgage interest is one example, with critics suggesting that the mortgage interest deduction primarily benefits the wealthy, while in fact, the MID benefits primarily middle- and lower income families – almost two-thirds of those who claim the MID are middle-income earners. Sixty-five percent of families who claim the MID earn less than $100,000 per year, and 91 percent who claim the benefit earn less than $200,000 annually.

“The ability to deduct the interest paid on a mortgage can mean significant savings at tax time,” said Phipps. “For example, a family who bought a home this year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file next year. That’s money they could use to pay down other debts, supplement their children’s college savings account, or put into savings themselves.”

Despite current economic challenges, most Americans still aspire to the dream of home ownership. According to a survey conducted earlier in the year by Bankrate.com, 90 percent of respondents said they had no regrets buying their current home. And just this month, a Fannie Mae survey found that most Americans – both those who currently own their homes and those who rent – strongly aspire to own a home and to maintain home ownership.

“We believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream, and looking forward, REALTORS® will continue to engage policymakers and industry leaders on behalf of consumers in pursuit of that goal,” said Phipp

 Iron Eagle Realty Team's new website. Our mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. We handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs. 

Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

My Profiles: