Jan Huchteman’s Blog

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TODAY’s topic:
Veterans Can Buy a Home for Nothing Down, Get $8,000 Rebate
by John Adams
from the Atlanta Journal-Constitution HomeFinder
Long regarded as one of the best programs of its kind, the VA Home Loan program guarantees loans made to veterans of the United States armed forces, and allows them to purchase a home with little or no down payment. In fact, in some cases, the veteran can even include the costs of closing in the loan itself, allowing a home purchase with literally no down payment.
Couple that program with the soon-expiring federal “First Time Home Buyer” tax credit of up to $8,000, and there is an almost irresistible incentive for any qualifying vet to stop renting and start owning now.

The IRS issued guidance on how to make the best use of the $8,000 first-time home buyer tax credit. This tax credit, which is available to first-time home buyers who purchase a home before December 1, 2009, can be taken on your 2008 or 2009 federal income tax return. But you’ll get the money faster if you file for it on your 2008 federal income tax return. Here are some strategies to get your $8,000 tax credit faster.

See www.thinkglink.com or www.irs.gov

Buyers appear to be back in the Decatur, Georgia area over the last few weeks. I am seeing mulitiple offers on homes in the best parts of Decatur in the $300-450k range. That is great news for the entire market.

The National Association of Realtors says sales of previously occupied homes rose 3.6% from May to June, the third consecutive monthly increase and a sign that a housing recovery is underway in much of the country. by Stephanie Armour, USA TODAY

Home sales rose for the third-consecutive month in June, a promising sign that stability in the housing market could help jump-start the economy.

Home sales last month rose 3.6% to a seasonally adjusted annual rate of 4.89 million properties with gains seen in all major regions of the USA, according to a Thursday report by the National Association of Realtors (NAR).

TOP STORIES on Yahoo Finance Page
December Existing Home Sales Rise Unexpectedly, Leading Indicators Up- AP
Existing home sales rose 6.5 percent in December to an annual rate of 4.74 million units, as the median home sales price plunged to $175,400, down 15.3 percent from $207,000 a year ago. Also, A private research group’s monthly forecast of economic activity rose unexpectedly in December, mostly because the flood of federal bailouts increased the money supply.

Home Prices Increase In a Number of States in 2008
January 26th, 2009 • Related • Filed Under
Filed Under: Real Estate
In the midst of the gloom and doom that has permeated our national news coverage, I figured that you would like some good news.

7 States actually saw price increases in 2008.

Yep, you heard me right.

There is good news out there.

Here are the states that saw an increase in single family home prices in 2008.

West Virginia 4.2%
Texas 3.6%
South Dakota 3.6%
Montana 2.6%
Mississippi 1.7%
Utah 1.5%
New Mexico 1.3%

You never would have guessed there would be good news today?
Stats buried in this Bloomberg.com article.

Can You Flip a House for Profit in This Market?
Actually it may prove to be the most optimal time for such a venture
By Carol Moore, bankrate.com | Published: 11/14/2008

If flipping a house in today’s real estate market seems riskier than trekking with a ragtag band of hobbits to Mordor, take heart: Home flippers can still find plenty of opportunities, though they’re not entirely without risk.
It may seem counterintuitive to invest in real estate when the housing market is in its darkest hour. But in fact, it may prove to be the most optimal time for such a venture.

According to RealtyTrac, a seller of mortgage default data, the foreclosure rate reached its highest level in 50 years in 2007 and has since risen to record numbers in the third quarter of 2008. Real estate investors are finding bargains everywhere, particularly in formerly hot housing markets such as Florida, Nevada and California.

Angie Hicks, founder of Angieslist.com, a compendium of consumer-service reviews, says a recent informal poll of list members found that of those who had purchased a home in foreclosure, 29 percent of respondents had done so within the last six months. Of those, 95 percent said their purchases were profitable.

“The key … is doing your research and knowing what you’re getting into,” says Hicks. “Know the area you’re buying, the market, how the price compares to the neighborhood.”

The horizon is flush with opportunity for those with the money and know-how to snap up a bargain and flip it, but to make it pay you first must understand how the rules of the game have changed.

Stick With Familiar Territory

Charlotte, N.C., resident Emma Allen, CEO of Emma Allen Enterprises and an experienced flipper, says there’s lots of inventory on the market.

“The prices that were recently so outrageous are down again, so those with capital or access to credit will find it’s a very good time to pick up bargains in the marketplace,” Allen says. Allen finds those bargains mostly in neighborhoods where she would like to live. Areas undergoing urban renewal present good investment opportunities.

FOR THE REST OF THIS ARTICLE SEE IT ON FRONTDOOR.COM

I received 2 OFFERS on one of my listings yesterday and have another coming in today after 5 months of being listed! Now we have a bidding war! It’s a short sale on a townhome in Suwanee, Georgia. I dropped the price about 2 weeks ago and suddenly all at once, it’s raining offers and they are all willing to wait on the delays a short sale lender could present to them. This beautiful 2 year old townhome was sold new for $227,000 and now is listed for $185,000 so you do the math.

Buyers, if you have been thinking about buying a home in the Atlanta metro area, NOW IS THE TIME ! Rates are still low and there are so many great deals out there. That doesn’t just include short sales and foreclosures, as there are plenty of other listings that need to sell, too, so don’t just focus on the bank owned properties.

Forbes Magazine Predicts Atlanta’s Recovery to Begin in 2009
http://www.forbes.com/2008/08/25/housing-prices-rising-forbeslife-cx_mw_0825realestate.html

Forbes Magazine made some good predictions for Atlanta homebuilders and residents last week. While other cities, like Las Vegas and Phoenix are expected to see home prices decrease by up to 50%, Atlanta is predicted to see significant increases as early as 2009. (This reiterates that NOW is the time to buy Atlanta Real Estate. Discounts on current new home inventory are available now. They won’t last forever!)
Although Forbes mentions the number of Atlanta foreclosures in early 2008, our continued steady job growth rate promises an end to our housing slump. In fact, next year home prices are expected to jump up by 32.5% for single family homes around the metro Atlanta area. Multi-family home prices are expected to rise by as much as 18.4% and job growth will remain around the steady 2% yearly increase that has kept Atlanta afloat and the envy of the nation. We are placed at number nine in the group of ten “lucky cities” that are predicted to experience long term recovery that will begin next year. Other cities where home prices are expected to rise include Oklahoma City, Minneapolis, Colorado Springs, Salt Lake City, Austin, Portland, San Antonio, Charlotte, and Albuquerque. So while times may seem tough now, if we can just hold out for a little while longer, things should be lo oking up for the economy and the Atlanta housing market once again.

10/9/2008 Explanation from Brian Yearwood, owner Custom Mortgage Services, Inc.

Recently, I’ve been getting a lot of calls from concerned sellers that are worried any potential buyer will not be able to get a home loan. If you watch the news every day, it certainly seems like the sky is falling, but nothing could be further from the truth. It is tougher to get a loan now because guidelines have tightened, but not because money isn’t available.

I recently read an article that gave a good example of this…imagine you owned a pizza shop in a college town. Every time you got an order from a residence, you made the pizza and delivered it. The customer that ordered it answered the door and paid you. That type of customer basically had no risk for the shop owner.

Now, imagine some guys in a fraternity house playing a trick on another house. They call the same pizza shop and order ten pies, and ask that they be delivered to their rivals next door. The pizzas are made and the driver is dispatched, only to be told at the door that no one ordered the pizzas. They have just wasted 10 pizzas that they didn’t get paid for.

So, as a result of the losses, the pizza shop decides to not accept anymore delivery orders from fraternity row. That would be a good business decision, right? In years past, the government has prevented the mortgage industry from making these risk-based decisions. They have demanded equal lending opportunities, whether the borrower was a good risk or not. Now, those high-risk loans are not available.

Since guidelines have been tightened, the only people who can buy homes now are the ones that are good credit risks. For those borrowers, money is abundant. The so-called credit crunch is affecting the ability to borrow for many items, but not homes. The lending industry has allowed people who really shouldn’t be buying homes to buy them, but no more. If it is a smart financial decision and you have a down payment and good credit, loans are still very easy to do.

If you have any questions, please do not hesitate to call me directly at
678-992-7100, or email me at byearwood@cmsloan.net.

Brian Yearwood
Custom Mortgage Services, Inc.