Waiting for the homeowner bailout provisions to come down to you from the $700 billion Emergency Economic Stabilization Act of 2008 won’t be necessary. The $300 billion Housing Economic Recovery Act of 2008 can provide more to relieve you immediately if necessary. In fact, the $300 billion recovery act mandated mortgage modifying provision and a voluntary “Hope for Homeowner” (H4H) refinancing program, so homeowners an qualify.

The $300 billion recovery act signed in July is ready to take effect. It was mandated for mortgage servicers to modify loans for certain homeowners and help avoid foreclosure under these requirements:

1. A default on the mortgage either has already happened or is “reasonably foreseeable.”
2. The home owner lives in the property as his or her primary residence.
3. The lender is likely to recover more through the loan modification or workout than by forcing the home owner into foreclosure.

The institute further advises:

1. Your hardship letter should demonstrate job loss, a serious health condition, an ensuing balloon payment, a coming adjustable rate reset or some other financial calamity that will preclude you from making your mortgage payments as scheduled.

2. Send the letter along with documented evidence — your financial statements, employment records, tax returns and bank statements and other evidence that demonstrates how you can afford a modified loan under your present financial circumstances. Also send the lender a current appraisal of your home or otherwise document the current value of your home.

3. Deal directly with a representative of the lender’s “loss mitigation” or workout department– not a broker, loan originator or other mortgage staffer.

More help for homeowners can be found here: “Foreclosure Prevention Efforts Grow.

Source: http://realtytimes.com/rtpages/20081016_bailout.htm

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According to the CALIFORNIA REALTOR® EXPO 2008, the prices for homes in most areas of California will decline next year, while the sales of actual existing homes continue to rise through out 2009.

“The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year,” said C.A.R. President William E. Brown. “Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009.”

Based on forecasts, California median home prices will see a 6 percent decline to about $350,000 in 2009 when compared to this year’s median price of about $380,000. It’s been projected that in 2009, sales are to increase about 12 percent to 445,000 units when compared to 2008 projected units of 395,600.

“Sales in 2008 will be ahead of last year by 12 percent, with a further increase of 12.5 percent expected in 2009,” said C.A.R. Chief Economist Leslie Appleton-Young. “However, the next couple of quarters in late 2008 and early 2009 will be marked by seasonal decreases in activity, with a pickup expected by the second quarter of next year.”

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Ownership at the CityCenter will provide you an unprecedented lifestyle experience. Residing at the CityCenter sets the pace for making Las Vegas a “greener” place to live. The CityCenter will submit eight projects to the U.S. Green Building Council (USGBC), attempting to earn the LEED (Leadership in Energy and Environmental Design) Certification.

Like the CityCenter, USGBC is trying to advance structures that environmentally responsible and  healthy places to live and work.

The following are CityCenter’s efforts to promoting a “greener” Las Vegas through your future residence:

• CityCenter will use a highly efficient drip irrigation system with  moisture control that will ensure landscaping is watered as much as needed;
• Paints, sealants, adhesives, carpet and composite wood products do not contain toxic substances;
• Volatile Organic Compounds (VOC) in order to not emit gas;
• Building facades have a glazing designed to reduce heat transfer;
• The development feature four designated recycled areas;
• There is preferred parking for carpools and alternative fuel vehicles to encourage alternative transportation methods;
• CityCenter favors the use of local and regional materials because they  help reduce pollution caused by transportation.

For more information on the CityCenter, please visit our website, http://CityRidge.com for electronic brouchures.

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It’s no surprise that in today’s market, many listed homes are having problems closing escrow. Sellers need to know that the traditional way of buying homes are long gone…at least for now. They need to be aware of key factors regarding the market if they want to sell their home quickly. Otherwise, expect your property to linger around the market for quite some time.

The number one factor in selling your home successfully is pricing your home accurately. Many REALTORS® can help sellers determine a fair market value for their home in order to list their property with a proper price. REALTORS® will pull up comparable properties within the neighborhood that have been sold from the previous three to four months.  The market continues to fluctuate from each neighborhood, that’s why it’s crucial to stay current with recent sales and accommodate with the market demands.

Sellers, do have some control with contingencies. Buyers sometimes request their contracts to contain contingencies based on obtaining a loan. So in order to avoid these possible setbacks, requesting buyers to provide a pre-approval letter from a lender is more efficient. This proves that the buyer is likely get approved for a mortgage loan. However, make sure that their pre-approval is current and not past 90 calendar days.

Many buyers try to take advantage of the home inspection report to negotiate a lower price. Sellers usually offer the buyer some money for the repairs  needed rather than the seller repairing each item that has been listed on the report. But it may be wise for the seller to have the home pre-inspected before listing their property to avoid paying a lump of sum to the buyer. This allows the seller to get a proper estimate for their costs and repairs in advance.

Sellers who list their property in a slow or competitive market need to understand the market conditions. Buyers today are wiser and very picky about where their money is going, and they’re always looking for ways to find a good deal on houses. Sellers don’t have to struggle though. Just be as smart and realistic about your property in its current market, and with a help of a REALTOR®, you’ll see your property close escrow in no time.

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President Bush signed a legislation that allows HUD’s Federal Housing Administration (FHA) to continue providing help for struggling homeowners with their mortgages. The Hope for Homeowners program, a.k.a “H4H,” allows FHA to continue it’s current efforts in providing assistance to struggling families with their mortgages which they cannot afford anymore.

This program allows certain borrowers who struggle with their current mortgage to refinance into affordable FHA-insured mortgages. This program has been implemented as of October 1, 2008.

Good news is that you don’t have to wait to find relief from this program. FHASecure, which is FHA’s existing refinancing program, can help homeowners determine whether or not they are eligible for this refinance right now. Here are several ways to obtain more information regarding this program:

1. Contact a local, HUD-approved housing counseling agency at HUD.gov;
2. Contact the HOPE NOW Alliance at (888) 995-HOPE; or
3. Call FHA at (800) CALL-FHA.

Hope for Homeowners requires that new loans needs to be based on a family’s long-term ability to repay the refinanced mortgage, and only owner-occupants are eligible for the FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:

• Their mortgage must have originated on or before January 1, 2008;
• Their mortgage debt-to-income must be at least 31 percent;
• They cannot afford their current loan;
• They did not intentionally miss mortgage payments; and
• They do not own second homes.

Features of FHA-insured loans under the new program include:

• 30-year, fixed rate mortgage;
• Maximum 90 percent loan-to-value ratio;
• No prepayment penalties;
• $550,440 maximum mortgage amount;
• Extinguishment of any subordinate liens; and
• New home appraisals from FHA-approved appraisers.

Although this program is available for the current homeowner, FHA will continue to offer lenders the alternative option to foreclose on their borrowers. Also, similar to FHASecure’s recent additions, lenders are encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property.

If we continue to slow down the foreclosures, this program supports FHA’s efforts to stabilizing our local housing markets.  According to U.S. Department of Housing and Urban Development, from September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital.

FHA claims that they will insure up to $300 billion in new loans. Borrowers will end up pay an upfront premium of 3 percent of the original mortgage amount, and an annual premium of 1.5 percent of the outstanding mortgage amount. However, any other costs incurred by FHA can be reimbursed by Fannie Mae and Freddie Mac.

The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure hopes to help 500,000 families by the end of the year.

If you’re struggling, you’re not alone. Do not opt out this program! Hope for Homeowners will help you ease the burden of your faulty mortgage in today’s economy.

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