The State of Real Estate= the State of the Country

Folks,
In case you haven't noticed, it's a jungle out there! The state of real estate is currently stagnant, but there are plenty of good deals out there. Such is the state of the country. A little stagnant, waiting for the next economic wave, but there are plenty of opportunities out there. We have to find them and take advantage of them.
Hey, let's get to work.

WHAT IF YOU HAVE TO SELL IN THIS DOWN MARKET?

Hi,
We all know that NOW is the time to buy because there are lots of great deals out there. NOW is not the time to sell if you do not have to sell.
But what if you have to sell in this down market? What if you have to move because you or your husband lost your job, you were down-sized(hate this), transferred and your company does not pay for a move?
Well, the old standards still apply. Get rid of all your clutter. Start painting, if you can, buy or rent an air purifier, and paint your ceiling a very light blue. Put a lovely mirror in the master and in the entrance. Why? For the same reason a car dealer wants you to take a test-drive. He wants you to feel how good you look in your new car. Once you do that, you will own it. You want your buyers to look at themselves in their new house.
Shiny floors translate to a shiny clean house. If you plan to replace the carpet, have a sample choice available with a note that says, "Pick You Color".
If you are in a neighborhood with lots of houses for sale, and if you belong to a neighborhood association. Call them up. Have a meeting about what they intend to do for you. Plan a party or event in your great neighborhood. Show off the good points in your neighborhood.
Good luck and a prayer of good things for you!

PREPARE FOR NEW WAVE!

Howdy Friends and Neighbors,
By now, we are all too painfully aware of the poor real estate market. We breath a collective, sigh and say, "This too shall pass."
By now, we are also keenly aware of what sells. So, my advise to you is to prepare for the next coming. No, not THAT next coming, but the next wave of real estate action.
Use this time wisely. Plan your strategy, begin fixing what needs fixing, spruce up, get rid of clutter--taking your time to keep what is really important. (Yes, I still have all my CCR albums)
Take your time, prepare for the next go-round because it will be here, hopefully, sooner rahter than later.

Pending Sales are down in the U.S. including the mid west.

Existing Home SalesPending Home Sales IndexReal Estate
InsightsNational Center for
Real Estate Research
In This Issue: Tuesday, July 15, 2008



JUST THE FACTS

The Latest Pending Home Sales Index and Forecast Release
Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast. The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5. Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.

NOW IS THE TIME TO BUY.

Why is “now the time for you”?
On Wall Street, “soft” markets present lots of great opportunities. The same is true in the housing market. There are more homes available (greater inventory) which means, as a buyer, the odds of finding a home that meets your particular needs actually increases! And because housing prices have remained stable, buyers are able to get more home for their dollar. Plus the home you buy today in a soft market means you’ll benefit more from the increased value of your home as the market strengthens.

Low rates and available money.
Interest rates continue to be exceptionally low with many banks competing for the homebuyer’s business. Almost all of the hype about mortgage lending getting tight has to do with sub-prime borrowers and lenders. There is still plenty of traditional mortgage money out there and available to qualified buyers.

Home sellers benefit, too!
The opportunities made available by market conditions will eventually attract more home buyers. As more buyers flood into the market to take advantage of low interest rates, housing inventory, affordable prices and available mortgage money, home sellers will naturally benefit, as well.

Rely on a REALTOR® to get the best value.
In today’s housing market it is difficult for home buyers and sellers to think clearly amid the confusion, hype and misleading information. There are so many things to consider when you’re looking to buy or sell a home, the expertise a REALTOR® brings is invaluable. A REALTOR® helps bring buyers and sellers together in a mutually beneficial fashion.

Land is still a great value............

Hi Folks,
The recent edition of Farm and Ranch Magazine features an article about land.
The gest of it is that land is still a great value. All kinds of land is being bought up by all kinds of foreign money.
Wake up!

Buy Land!

Is any one out there?

Did anyone notice that I did not post a blog for over a month?
Geeeeeeeeeeeezzzzzzzzzzzzzzzzzz.
Anyway, I'm back..........Thanks for not asking....................

NEW HOPE FOR ALL

Mortgage guildlines to help those in need of a mortgage tweak...

More than two dozen loan servicers that collect payments on most U.S. mortgages have agreed to adopt guidelines that are intended to expedite the process of working with troubled borrowers to prevent foreclosures.

The new HOPE NOW guidelines state that loan servicers should inform homeowners within 45 days whether their application for a workout -- such as a repayment plan, loan modification or short sale -- has been accepted or denied.

Servicers also agreed to re-subordinate second-lien loans if their position will not be worsened by a refinance or workout -- potentially removing a major obstacle to preventing foreclosures in cases where borrowers have "piggyback" second loans. HOPE NOW servicers will also attempt to contact homeowners with subprime adjustable-rate mortgages (ARM) and other homeowners with ARMs that have a probable risk of default 120 days in advance of reset.

The Bush administration helped organize the HOPE NOW coalition of loan servicers, and has cited its efforts in opposing a proposal to expand FHA loan guarantee programs to help more troubled borrowers refinance (see story).

State banking regulators have questioned the effectiveness of the lending industry's loss mitigation efforts, saying only one in four troubled borrowers were being diverted from the foreclosure process at the beginning of the year. A recent report by the Office of the Comptroller of the Currency raised questions about the number of borrowers helped by HOPE NOW loan servicers, and called for more consistent reporting of workout efforts (see story).

"I supported the HOPE NOW program when it came out and I continue to think it is worth trying, but it is now clear that much more aggressive action is needed and reinforces the need for legislation to expand the FHA program to help refinance at-risk borrowers into viable mortgages," Rep. Barney Frank, D-Mass., said in a statement after the release of the OCC report. Frank supports a $300 billion expansion of FHA loan guarantee programs to refinance mortgages for owner-occupied home when lenders agree to write-down principal and pay fees, limiting their recovery to 85 percent of a property's currently assessed value.

The Congressional Budget Office estimates that about 2.2 million borrowers with alt-A or subprime loans will face foreclosure proceedings between Oct. 1, 2008 and Sept. 30, 2011. Frank's proposal would allow about 400,000 borrowers with loans worth $68 billion to refinance, CBO estimated, at an estimated cost of $680 million.

Asked the new HOPE NOW guidelines were a response to pressure from regulators and lawmakers, Steve Bartlett, chief executive officer of the Financial Services Roundtable said the move was prompted by "the size of the problem," which he said was getting larger. "The size of problem requires a much different and bigger solution," Bartlett said in a conference call with reporters.

The 27 lenders agreeing to follow the new HOPE NOW guidelines were Acqura Loan Services, Assurant Inc., Aurora Loan Services, Avelo Mortgage LLC, Bank of America, Carrington Mortgage Services, Chase, Citigroup Inc., Countrywide Financial Corp., EMC Mortgage Corp., First Horizon Home Loans and First Tennessee Home Loans, GMAC ResCap, Home Loan Services Inc., HomEq Servicing, HSBC Finance, Indymac Bank, LandAmerica Financial Group Inc./LoanCare Servicing Center, Litton Loan Servicing, National City Mortgage Corp., Nationstar Mortgage LLC, Ocwen Loan Servicing LLC, Option One Mortgage Corp., Saxon Mortgage Services, SunTrust Mortgage Inc., Washington Mutual Inc., Wells Fargo & Co., and Wilshire Credit Corp.

For more information visit HOPENOW.com. The Homeownership Preservation Foundation's HOPE Hotline (888) 995-4673 is available 24 hours a day, seven days a week.

The Banks are beginning to move on resolving things...

Industry trade publication Inman News reported last week that more than two dozen loan servicers have agreed to adopt guidelines intended to speed up the process of working with troubled borrowers to prevent foreclosures. Under the HOPE NOW guidelines, loan servicers should inform homeowners within 45 days whether their application for a workout -- such as a repayment plan, loan modification or short sale -- has been accepted or denied. Click here for more details and a list of the participating loan servicers.

If you need help, it is out there.
Let's go buy some real estate!

Troubled times all around

Hi Friends,
We just got back from a spectacular 25th anniversary trip to Ireland, England, France and Scotland. Loved it.
The papers were full of angst due to high fuel prices ($6.00 per gallon), huges taxes, food prices are off the charts and the service laborers are "taking jobs away from the locals". Sound familiar? The labor force is Eastern European by the way.
Mortgage defaults are going up there too.
So, we are not alone. That economic down-turn will hit them much much harder. More later.
Hey, let's go buy some real estate. Now is the time to buy!!!!!

House Bill 1001

This Deals with Property Tax rates, caps, homestead exceptions, etc.
The link to this lengthy, but very important bill is pasted here.
Please read my comments in previous blogs. Enjoy! Did I mention that "Keeping YOU # 1 in Real Estate" is our mission, goal, and work ehtic?
http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2008&session=1&request=getBill&docno=1001

317-698-5675

Regarding Homestead Credits:

Please read the excerpt form House Bill 1001 below.
I offer the following caveat.
When buying an income property, seller second home, or any other property that is not homesteaded, remember that a homestead application will be done automatically whenever the property closes. The Buyer's taxes due will decrease. The pro-rated taxes will have to be adjusted. Make certain that you have this adjustment in writing and make sure everyone is clear on how over-charges or over-payments are to be disbursed.
Everyone in the transaction should be clear about this. That is one of the reasons you want to work with me or other competent Brokers. We are here for you!
Call me!
317-698-5675

Homestead Deduction and Applications

A Homestead Application will automatically be done at the closing of a property! Hurray! The following is an excerpt from House Bill 1001:
Provides an additional supplemental standard deduction for homesteads. Provides additional homestead credits in 2008 of $620,000,000. Provides that in a county that adopted a local option income tax (LOIT) in 2007, the county auditor, with the approval of the county fiscal body may petition the DLGF to permit a portion of the additional 2008 homestead credit to be used instead to increase the additional state funded homestead credit provided for 2009 or in both 2009 and 2010. Provides $140,000,000 in homestead credits in 2009 and $80,000,000 in homestead credits in 2010. Provides that a school corporation may not impose a special education preschool property tax levy after December 31, 2008. Requires the department of education to make distributions equal to the product of $2,750 multiplied by the number of special education preschool children who are students in the school corporation. Increases the maximum amount of the state income tax deduction for renters from $2,500 to $3,000. Provides that an individual who owns a homestead with a gross assessed value of less than $160,000 and who has adjusted gross income of $30,000 (in the case of a single return) or $40,000 (in the case of a joint return) is entitled to a property tax credit to the extent that property taxes on the individual's homestead increase by more than 2% from the prior year. Repeals the expiration date for the state earned income tax credit. Provides that the maximum amount of the standard deduction is the lesser of $45,000 or 60% of assessed value for 2009 and thereafter. Requires the DLGF to adopt rules or guidelines concerning the application for the standard deduction. Increases the sales and use tax rates from 6% to 7%.

What is Happening In the Real Estate Business?

A new day has risen in the Real Estate Industry! Searches are virtual, Listings are National and Brokers are the formitable bridge that facilitates the deal, and brings it to a successful close. From the Seller-Side: Sellers, use a smaller Independent Brokerage. It will save you money. Why? Because there is no more mid-sized brokerage. The big guys are getting bigger absorbing the mid-sized brokerages and Independent Brokerages are growing by the day.
Big brokerages are becoming bigger and bigger. That translates to higher overhead, and for the seller, higher commissions charged. Why? Because it takes more gas to run a cadillac--
An independent brokerage will provide the same service, usually better service in personal-results-driven than the mega-brokerage.
Buyer-side: It does not cost you anything unless you are smart and structure something good. call me.....

JUST THE FACTS FROM NAR

*JUST THE FACTS *

* The Latest Pending Sales Index and Forecast Release *
Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast. Lawrence Yun, NAR chief economist, said the market will come into clearer focus this summer. “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he said. “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”
This from the National Association of Realtors.

And Now a Word From Our Sponsor!

Who is our sponsor, you ask? Well, it is the Lord Almighty and Mother Earth of course! I can hear them both now, "Hey Folks, stop and smell the roses!" Except that it is not roses we have to smell today. It is the smell of good health clean earth as in soil.
If you are buying into the Green Movement,(please click on this.http://www.nytimes.com/2007/07/01/fashion/01green.html, you will soon note that what really matters is not the claim that something is earth-friendly. What matters is that one is friendly to the earth in our daily living. I can remember when "Grow your own" meant something WAY different. Today, grow your onw is the way to go. Grow your own food. Share some time with your friends and neighbors, improve the human condition at least in your corner of the world. Cultivate friendship and community through cultivation. And don't forget to smell the roses!

Strong Markets Predicted Through 2008

More about land....I love the land and you should too! As Noted in Midwest Farm & Ranch, www.farmandranch.com volume7, pg. 23. Strong profit levels for farmers is predicted. The U.S. economy will hold strong and ethanol demand will continue to grow. From 2008 through 2010, the market will hold, demand for bio fuels should continue and world demand for commodities is expected to continue to be strong. 2010 and beyond presents an uncertainty with new administration and the question of continued bio fuel demand, but the new Energy Independence Security Act will provide some security in the market. Optimism continues in the far and ranch real estate market. Opportunities are available for both buyers and sellers......
Central Indiana is expected to continue its steady growth buffered by plenty of farm land. It is good to be in Indiana!
Call me...

Be a Land Baron!

Something to consider when buying a horse property....

As you may have read in a previous blog, land is the hottest new commodity. It is selling like hotcakes! Why? Because of the increased price for grain, oil prices and the world economy in general. Current cash crops are: corn, soy beans and wheat. Alfalfa is now and will be hard to find.
If you are looking to buy property for you and your beloved horses. Consider buying a property with tillable acres. That way you can grow your own, sell what you cannot or do not use. The yield will make your property more valuable at re-sale.
If you don't have the machinery to till and harvest, do not despair. In all rural settings, you will always find a farmer who will contract with you for this work.
Let's go shopping!
Call me!

Having Debt Problems?

Do you know why so many people abandoned their houses? Because they could. There was a pervasive "easy come, easy go" mentality in the mortgage frenzy we experienced in the past three years. People walked away from their homes because they could--there was no local person to be accountable to, so they walked. Do you know why some people are plagued with credit card debt? Because they cannot walk away from it. It follows them wherever they go like a black cloud that everyone can see. Except it cannot be seen with the "naked eye". It is painfully picked up by the red eye of the scanner. They cannot walk away from it, they are stuck with having to pay up to 21% interest on the balance on what they owe for food, clothing and basic needs. They can move in with a family member, but they still have to eat.
If you need debt help. Please contact:www.momentive.org or www.ineedhelp
or call: 1-800-gethelp
Get a grip of our life. There is help. When you are ready to buy or sell. Call me......

Investment companies are cleaning house!

Ah spring! It is a time for new growth, re-growth and a time for cleaning house and sprucing up. The banking industry is cleaning house, a timely and well-deserved action. Greed, thy name is mortgage broker! There are no "six degrees of separation" in fraudulent business practices. And we are finally seeing where the money trail has landed. Good riddance to the scoff-laws. Lets hurry up and clean house so that the rest of us can go on with our lives.
It's been said that necessity is the mother of invention. Can you hear the wheels of invention churning? Our days of oil-dependence are numbered and soon the oil-rich countries who think they have this country under their thumb will come-a-knock'n. Stay tuned........
Let me help you buy or sell. I'm here

Pending Sales Index Falls Largely on Mortgage Tightening....

Do not fear friends and neighbors! Yes the indexes are lower, but when you examine the sales decreases--sub prime and jumbo loans, the rest of the market is OK. This means, if you have a job and if you can pay your mortgage, you are OK. According to the National Association of Realtors senior economist, abnormal factors are clouding the horizon. He states, "THERE ARE NO SERIOUS PROBLEMS FOR THE MAJORITY OF BUYERS WHO QUALIFY FOR CONVENTIONAL FINANCING OR FHA-INSURED LOANS."
Don't listen to the gloom and doom of the mass media. Yes, things are tight, but is this the end of the world? No. Have we been in this type of situation before? Yes.
Is competition for goods and services increasing world-wide? Yes. Is this the type of competitive atmosphere that we Americans thrive on? You bet! The best is yet to come!
Stat tuned............

Property Tax Caps are a win-win...........

Indiana is paving the way to stableize property valuation taxation here and in the rest of the U.S. State Legislators have finally listened to the the people and acted on legislation that will put a 1% cap on property taxes based on a property's value. This will keep the homeowner's tax bill reasonable, and it will keep prices from skyrocketing out of control as we have seen happen in California, Florida and other places. It will strike a healthy balance in the real estate market. And as we all know, a healthy balance is a good thing in everything that matters to us from relationships to family, work, etc.
For anyone reading this blog, I applaud you. I encourage you to keep an eye on your county and township spending. There as been too much abuse of fiscal power in these quiet sectors. Did you know that heretofore, townshps have been funded according to what they spend? Never mind if it is responsible spending, just spending. The only fiscal responsibility townships have had to maintain is to continue spending the same yearly amount so that respective budgets would be met plus 3% each year. It's time we all took a good look and follow the money trail. Stay tuned!

What goes around, comes around........

We are seeing a resurgence of small farms growing good healthy food for those who yearn for a better diet and healthier bodies. There are a number of small local specialty farms in this area such as Homestead Growers in Sheridan, IN, the Redwine Farm, in Westfield and others who do now use pesticiedes and chemicals on thier produce, nor do they use growth hormone on their animals. They've purchased or rent larger parcels of land to grow what sells-healthy vegetables, mushrooms,herbs for dried herb mixtures,and other things. The small farm is coming back. Rural America is waking from a long sleep.
Be part of the new America--healthy, wealthy and wise.
Call me.
I've go some great parcel information for you!

Medco coming to Boone County

Who doesn't love science? No one. We in Boone county love science, math, english, you name it, we love it. Indiana loves science and the state's life science initiative click here for more info. http://lifesciences.iu.edu/ is paving the way.
Medco, one of the largest pharmaceutical dispensing companies in the country is moving there operation here. It is wonderful news for everyone.
Check them out.http://www.medco.com
What does this have to do with Real Estate? Plenty. Plenty of jobs, housing schools, etc. It's all here in Zionsville.
Hooray!

Rental Housing

Monday's Indianapolis Star, page C3 shows an article about rental housing,"Rental housing back in spotlight". Rents and occupancy rates are on the rise.
Now is the time to invest in rental properties.
Call me.....

More about land....

Sunday, March 9, 2008 Indianapolis Star A-page article: Grain boom may spark rural revival..It states in part that the value of farmland has soared from an average of $3500. an acre to more than $4,000. in the past two years. This is in way-rural Indiana. Metro area price per acre averages 10K (Boone county horse country is $100K per, but that is another blog).
People looking for land know that the grain boom is here and it is here to stay for a long while.
Call me.....

Let's talk land....

As you may know, buying land is a very good investment. Why? Because unless it is nuked, land will never lose it's value. Did you know that land is being scooped up by the hundreds of thousands of acres? If you are considering buying land. Let's explore what you can do with it. If you have a small horse property, you will want to buy adjacent acres, for riding trails (if the acreage is wooded) or to plant and harvest hay. You will want to plant Timothy and Alfalfa. This is the best grass to grow for horses because it does not make them colicky and it does not clump up in their gut which will kill them. Horse people will drive for miles to buy good T&A! This sounds a little risque, but I'm speaking in horse hay terms here.....
For large tracts of land, you will want to lease to a tenant farmer. He/she will pay you a rental fee per acre, usually about 1K/acre or they farm the land, you split the profits. Soy beans are the way to go here for many reasons. You'll want to buy as close to a city as possible, and look for property with road frontage. Why? Call me...

FHA LOAN LIMITS HAVE INCREASED!

Working with FHA was once a nightmare, but FHA has re-invented itself. It's paperwork- lean,user-friendly and it is making a tremendous effort to help all of us out. In Boone county Indiana, the limit is now $271,050.00, higher in Indianapolis. THIS IS GOOD! This means you can get into a house with only $8,131.50. And there are mortgage companies out there; Perfect Mortgage for example, that has no minimum credit score, ignore most old collections, ignore ALL medical collections, and will lend while in Chapter 13. Check them out: 317-575-0100. Call me, let's get you into a house.

New FHA loan limits........It's a new day!

There was a time when working with FHA was a beuruecratic

The State of Real Estate....

Robbing Peter to pay Paul? Question. If we are in a "recession" how is it that presidential candidates are each able to secure $35million in contributions in one week? The answer is simple. It is foreign money--the possibilities are endless: Case in point: A computer was seized from a Colombian guerrilla group recently. It was a treasure trove of information including their support and contention that Obama will be president. Hmmmm...
Another possibility is that people have enough money to give away, so people are being selective with their spending.
Land is being bought by the thousands of acres. Why? Land value never decreases and real estate, besides gold bullion, is still the best asset to hold. There is a limited amount of land, and the population continues to grow. Case in point: Texas land is going to the highest foreign bidder. Check it out.
Indiana remains one of the least expensive places to buy real estate.
Call me.

Oil is high, money is tight, people will be renting.....

Warm Broker greetings one and all. The price of oil continues its steady increase. Oil producing countries are savoring their hold on the American dependence, and the economy is weak for now. When this happens, people rent instead of buy. A savvy investor will buy homes and rent them. Why? Because he can. There is a strong market for lease properties.
Let me help you buy your investment properties. There's a number of HUD-owned homes selling for pennies on the dollar. Check this out here.

http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm
Call me!