What is He Thinking?

 H.A.R.P. was put into law last year by our President Obama.  It was placed into law so that people could Refinance there mortgage up to 125% of the current value of there home.  Our President told us that this would allow people to refinance there mortgage that was underwater due to the value.

However, here is the problem.  People are doing the following:

1.  Some are first trying to do Loan Modification thru their lender only to find it will not work.

2.  When they can not get a Loan Modification the they are trying to sale their property thru a Short Sale.

3.  When they discover they cannot get a  buyer or the bank will not agree to the Short Sale, then they are allowing the house to go into a Foreclosure.

4.  The last thing they are trying to use is H.A.R.P.  Only 20,0000 people have used any of the Governments programs and Obama sold the country on that all these programs would help 4 to 5 million people keep their homes.  (It is not working)

Now…….Guess What……Obama wants to pass H.A.M.P.  This will Freeze all Foreclosures by banks for 4 – 6 months.  That means that the people not paying their mortgage payments can live there FREE for another 6 months.

I heard the other day that Obama is a smoker.  The question is WHAT IS THIS GUY SMOKING ?

Why should all  of us keep paying our mortgages when our President wants to let all of these people, that should not be in their homes, to live there FREE ?  As a taxpayer we are paying for all of this.

Replacing old or damaged siding on your house can make it easier to sell it or add long-term value if you’re planning to stay for several years.

According to the National Association of the Remodeling Industry, adding new siding offers one of the best returns on an investment a homeowner can make.

“Anything you own and are trying to resell, if it’s maintained, it’s going to sell (faster) than if it isn’t,” said Matt Wright, a certified remodeler and owner of The HomeWright, LLC.

Wright likes to get creative when adding siding to a home by dressing up trim pieces, shutters and other exterior components. “It’s taking a design eye to the outside, like I do to the inside, to add curb appeal and also to maintain the house,” he said.

Homeowners can choose from a variety of siding options to fit their needs. Wood, vinyl and fiber-cement are the most popular choices:

Wood: It offers a nice aesthetic appeal to many homeowners but can be pricey, inviting to insects and requires more maintenance than other siding types.

Vinyl: It is an easy-to-maintain, low-cost option and doesn’t rot or wear like wood. However, it can crack, chip and fade over time.

Fiber cement: It has more of a wood appearance and is more durable than vinyl. It has become the preferred choice of homeowners in recent years, but typically costs more than vinyl.

“Unlike vinyl, fiber cement is fire- resistant,” said Mike Dittmer, owner of Aztec Homes Fiber Cement Siding. “It does not expand or contract and is hail-resistant. Unlike wood, fiber cement will not rot. It’s resistant against all insects and woodpeckers. Most of what I replace is wood and vinyl.”

Ultimately, homeowners must weigh the pros and cons of the different siding types and choose what best fits their personal tastes and budgets.

“People just have to see what their options are; see how knowledgeable (service companies) are, not only about the product, but about the installation,” Wright said.

If you do it yourself:

» You expose yourself to physical dangers — mostly from ladder falls, and potential health hazards from inhaling the residual dust.

» You might void your warranty if installation is done improperly or in conflict with a manufacturer’s instructions.

If you decide to hire a contactor:

» Avoid those who market their work door-to-door.

» Always verify a contractor’s insurance and references before you hire.

» Ask for before and after photos of other jobs.

» Know that fiber cement siding has to be installed by a certified preferred remodeler approved by the manufacturer. If not, Dittmer said, the warranty is voided.

“If it’s installed properly, fiber cement requires minimal maintenance,” Dittmer said.

Additional Informatio includes:
NAR’s HAFA brochure (text only)
NAR’s HAFA brochure
NAR’s one page summary of HAFA
NAR’s HAFA FAQs

For more information, contact Jeff Lischer at 202/383-1117 or Tony Hutchinson at 202/383-1120.

Source: National Association of REALTORS®

Indianapolis — Central Indiana consumers are satisfied with the timing of their home purchase, according to the Metropolitan Indianapolis Board of REALTORS® (MIBOR).

The findings emerged from the 2009 Profile of Buyers and Sellers, a study commissioned by MIBOR that surveys home buyers and sellers annually to gather detailed information about the home buying and selling process. These surveys provide information on demographics, housing characteristics and the experience of consumers in the housing market, and are localized to highlight the unique characteristics of our local central Indiana market.

Nationwide, the share of first-time home buyers – typically around 40 percent of sales — rose to 47 percent during the period from mid-2008 through mid-2009. Locally, the number of first-time buyers was just slightly lower, at 44 percent.

Experts attribute this increase to the lucrative tax incentives and historically low interest rates available now.

“First-time home buyers that purchase any kind of home — new or resale — before April 30 are still eligible for an $8,000 federal tax credit,” said (name). “That opportunity motivated many first-time buyers in 2009, and continues to motivate them today. FHA loan rates are at historic lows and inventories are high – it’s almost a perfect storm for first-time buyers especially.”

In addition to the favorable environment, central Indiana’s affordability allows first-time buyers to achieve homeownership at a younger age than their counterparts from other parts of the United States. In our region, the typical first-time homebuyer is 29 years old, compared to 30 years old nationwide.

Local affordability also enables central Indiana buyers to achieve the American Dream with a lower annual household income. The 2009 median household income of buyers was $66,000 — significantly lower than the $73,100 median income of buyers nationwide. First-time homebuyers in central Indiana reported a median household income of $55,400.

But despite all the good reasons to buy a home in 2009 – like affordability, selection and federal and state tax incentives — for 32 percent of recent home buyers, the primary reason for their purchase was simply a desire to own a home.

Other key findings include

• The median household income was $82,300 among repeat buyers.
• Twenty-two percent of recent home buyers were single females and 9 percent were single males.
• Nationwide, 21 percent of recent home buyers were single females and 10 percent were single males.
• New home purchases were at the lowest level in eight years nationwide — down to 18 percent of all recent home purchases. This is reflective in Indianapolis — 22 percent of homes were new.
• The typical home purchased was 2,000 square feet in size and was built in 1997.
• The median price of home purchased was $142,000 compared to $185,000 nationwide.
• The typical home buyer searched for 9.5 weeks and viewed 12 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.
• Twelve percent of buyers purchased a home in foreclosure. Nationally, 10 percent of buyers purchased a home in foreclosure.
• Recent sellers typically sold their homes for 96 percent of the listing price, and 57 percent reported they reduced the asking price at least once. Among all sellers nationally, sellers typically sold their homes for 95 percent of the listing price, and 60 percent reported they reduced the asking price at least once.
• Fifty-seven percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.

For more information on NAR’s 2009 Profile of Home Buyers and Sellers, or to learn more about MIBOR’s monthly and annual statistics, call 317-956-5232 or visit www.mibor.com.

Housing Bubble

Report by the Government last week warns of new bubble.  Much of Barofsky’s (special inspector general for the TARP) report to Congress, focused on the government’s growing role in the housing market, which he said has increased the risk of another housing bubble.

Over the past year, the federal government has spent hundreds of billions propping up the housing market.  About 90 percent of the home loans are backed by government controlled entities.

The Federal Reserve is spending $1.25 trillion to hold down mortgage rates, and millions of homeowners have refinanced at lower rates.

The government has stepped in where the private players have gone away, Barofsky said in an interview.  If we take government resources and replace that market without addressing the serious (underlying) concerns there really is a risk of artificially pushing up home prices in the coming years.

The report warned that these supports mean the government has done more than simply support the mortgage market.  In many ways it has become the mortgage market, with the taxpayer shouldering the risk that had once been borne by the private investor.

These are concerns raised by housing experts in recent months, as home sales and prices rebounded.  They warn that the primary reason for the turnaround last year has been billions of dollars in federal spending to lower mortgage rates and prop up demand.

Once that spigot of cash is turned off, they caution, the market will be vulnerable to a dramatic turn for the worse.

Guess what, in a few months the buying of mortgage backed securities and the tax credit to home buyers will both be gone.  What will happen then?

On the other Hand……On a National level…Existing home sales sink 16.7%
Existing home sales fell in December, the month after a federal tax credit was slated to expire, according to a real estate industry report issued Monday.
The National Association of Realtors reported that existing home sales plunged 16.7% last month to a seasonally adjusted annual rate of 5.45 million units, down from the revised rate of 6.54 million in November. Still, sales year-over-year were up 15%.
Boy on Boy!!!!!!!!! Hard to say are we getting better or getting worse?

There’s still time to get  an $8,000 bonus on  your dream home.  The credit, originally scheduled to expire in 2009, has been extended until this spring.
You can claim the credit if you sign a sales contract before May 1 and close before July 1.  Members of the military who serve extended duty outside the US have until July 1, 2011, to claim the credit, as long as they sign a contract before May 1, 2011.
And that’s not all.  The legislation also expands the credit, making it available to some homebuyers who already own a home but would like to trade up.
Here’s who stands to benefit from the expanded homebuyers’ credit.

Big bonus for first-timers
First-time homebuyers are defined as those who haven’t owned a home in the three years before the purchase.  If your spouse owned a home in that time frame, you’re not eligible.  Those who qualify can claim a tax credit for 10 percent of the purchase price, up to a maximum of $8,000.
The credit is refundable, which means if you owe less than $8,000 in taxes, you’ll receive a refund for the difference.  However, the credit is not available for home purchases that exceed $800,000.
The new legislation also expands the income cutoff levels.  Previously, singles with incomes of more than $95,000 ($170,000 for married couples) were ineligible for the tax credit.  Now, single homebuyers with annual incomes of up to $125,000 qualify.  Married couples who file joint tax returns can earn up to $225,000 annually.
Also, the credit doesn’t have to be repaid unless you sell your home within three years.

Existing homeowners
Homebuyers who have lived in their current home for five out of the past eight years qualify for a tax credit of up to $6,500.  The deadlines are the same as for first-time homebuyers.
The income thresholds for existing homeowners also are the same as those for first-time homebuyers.  Likewise, existing  homeowners can’t claim the credit if they purchase a home for more than $800,000.
In addition, the new home must be your principal residence and you can’t us the credit to buy a vacation home.

Frequently asked questions.