The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now."

This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion.

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

Just How Much Will Waiting Cost?
While no one knows for certain what the future holds, two things appear clear. Home loan rates will likely be higher in the future, and free money from the government will be gone. These deadlines will affect both affordability to purchase and the opportunity to refi.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

DON'T MISS OUT ON A GREAT OPPORTUNITY IN TIME TO BUY- CALL NOW TO SET UP AN APPOINTMENT FOR US TO MEET AND DISCUSS HOW I CAN ASSIST YOU WITH YOUR NEXT PURCHASE!!    

Visit us online at www.nathanbangs.com

And Here's Your Morning Coffee!

Nathan Bangs & Associates

Nathan Bangs & Associates, Keller Williams Realty
3502 Henderson Blvd., Tampa FL 33609 For Sellers: 813-739-5965


Visit http://www.nathanbangs.com

THE WAITING GAME!

The well-known Nike commercials have hammered into our heads the phrase "Just do it!" Regardless of how you view their advertising, there is magic in the words "just do it." The real key to the message is "doing it," a.k.a. taking action. Anything you have ever desired is available to you if you will it.

Now, consider those who are constantly washed over by the "tide." Note that the lyrics in Jim Croce's song say, "I'm WAITING for my ship to come in . . ." and then, "but all that comes in is the tide." That sounds like a victim's lament, as in, "Oh poor me, here I am ready and excited, waiting for my ship to come in, and I get dumped on by the sorry tide. Bummer. How unfair." Duhh! Helloooo!

It's easy to see that "action" is the opposite of "waiting." Yet, it's so easy to do nothing - waiting passively. Action requires energy, enthusiasm, movement, and objectives, while waiting requires not even a thought.

Whether your desire (your "ship") is a relationship, wealth, a healthy body, or a new car, you must be the captain, not the port - the "master of your fate," not a tide-washed, sand-covered beach ball. Life is great! On your next trip to the beach, buy a boat, a map, and a compass, and then choose your own port of call. You'll dine at the Captain's Table every day!

Visit us online at www.nathanbangs.com

What a week the team and I had....6 NEW listings all at amazing prices!  See below and let us know if you would like to see anything?

Don't see what you want from our list let us customize one for you...

www.FindTampaAreaHomes.com  

and for my Deal Hunters...

www.HotBankBuys.com

Have a great weekend and let us know how we can help, time is running out for the First Time Home Buyer Tax Credit.

Nathan

Nathan Bangs & Associates

Nathan Bangs & Associates, Keller Williams Realty
3502 Henderson Blvd., Tampa FL 33609 For Sellers: 813-739-5965


Visit http://www.nathanbangs.com

Nathan Bangs & Associates

Appraisers: BPOs raise risk of fraud in short sales

By Matt Carter, Tuesday, March 9, 2010.

Industry groups representing appraisers say the Obama administration's short-sale incentive program lacks safeguards to prevent mortgage fraud, including so-called "property flopping" schemes in which real estate agents help investors obtain distressed properties at deflated prices.

In a letter to Treasury Secretary Timothy Geithner, four groups representing appraisers, including the Appraisal Institute and the American Society of Appraisers, urged the Obama administration to prohibit the use of broker price opinions (BPOs) when valuing properties eligible for the Home Affordable Foreclosures Alternatives (HAFA) short-sale incentive program.

"Generally speaking, real estate agents and brokers are not independent or properly trained valuation specialists," the groups said. "They have an inherent bias toward quick results and action, which produces a fee for themselves irrespective of whether the lender ... gets a fair return on the short sale."

The National Association of Realtors did not immediately respond to a request for comment by Inman News. While some real estate agents acknowledge that property flopping and mortgage fraud can be a problem with short sales, they say BPOs in and of themselves are not necessarily to blame.

Nathan Bangs, a Tampa Bay, Fla.-based Realtor who specializes in short sales, said that unlike an appraisal, which attempts to determine a property's market value and can quickly become outdated in a declining market, a BPO is intended to establish "what it would take to move (a property) in 30 days."

"I would have the same conversation with a seller who is not in a short sale," Bangs said. "You price it in front of the market."

The HAFA program guidelines issued by the Treasury Department in November include measures intended to thwart fraud. Properties must be publicized in a multiple listing service (MLS) and marketed by the listing broker.

Any short sale "must represent an arm's-length transaction and that the purchaser may not sell the property within 90 calendar days of closing, including certification language regarding the arm's-length transaction that must be included in the sales contract," the guidelines say.

But industry groups representing appraisers cited recent studies, like a mortgage fraud risk report by Interthinx Inc., as cause for concern. The Interthinx report showed schemes involving short sales and "real estate owned" (also known as bank-owned or REO) properties has increased by nearly 50 percent over the past year and doubled over the past two years, the groups said.

Groups representing appraisers also pointed to a recent analysis of 18,000 property sales in two Florida counties, Sarasota and Manatee, by the Sarasota Herald Tribune, which concluded that 1.4 percent were "questionable short sales."

A U.S. Treasury Department representative did not respond to requests for comment.

According to a fact sheet issued by the Treasury Department in May, lenders may use an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) to determine a property's list price and any permissible reductions, or one or more BPOs. Either way, the valuations must be dated within 120 days of the short-sale agreement.

Appraisers want the Treasury Department to prohibit the use of BPOs for property-valuation requirements involving short sales, in order to "reestablish independence in the valuation process and guard against conflicts of interest in short sales."

Laws in 23 states limit real estate agents and brokers to performing BPOs only to assist buyers or sellers, the groups also noted, and lenders who sign off on short sales do not own the properties and are not buyers or sellers.

The HAFA program is aimed at borrowers who are eligible for the Home Affordable Modification Program (HAMP) but who did not qualify for or failed to complete a trial loan modification.

HAFA sets up a streamlined process and provides incentives to divert homes headed for foreclosure into a short sale or deed in lieu of foreclosure.

In addition to questions about whether the program will be able to prevent fraudulent transactions, there are also doubts about whether the incentives offered will be enough to prevent a significant number of foreclosures.

The program pays loan servicers $1,000 to cover administrative costs. Homeowners get $1,500 in relocation assistance and a promise from their lender not to pursue a deficiency judgment against them for the difference between their home's sale price and the amount outstanding on their mortgage.

Because the claims of lenders who have made second, or "piggyback," loans on many properties often derail short sales, the HAFA program also provides incentives for paying those claims off.

To defray the costs of paying off claims by second lenders or other subordinate lien holders, the first lender can be reimbursed $1 for every $3 it provides to subordinate lien holders, up to a maximum of $1,000. In other words, a first lender that provides $3,000 in proceeds from a short sale to a second lender can receive $1,000 from the Treasury Department.

The program restricts payments to subordinate lien holders to no more than 3 percent of the unpaid principal balance of their loan, up to a maximum $3,000.

That means a second lender owed $50,000 could receive no more than $1,500 -- which Bangs said is not enough of an incentive for the second lender to agree to give up its right to obtain a deficiency judgment against the borrower.

Bangs, who said 75 of the 80 listings he's handling now are short sales, views the HAFA program as "political grandstanding. The government is trying to help, but it's not on the same page as the private sector."

Investor limitations on payments to subordinate lien holders have reportedly led some to pursue payments outside of closing.

In January, CNBC real estate reporter Diana Olick wrote about attempts by subordinate lien holders to get real estate agents or buyers to make payments to them outside of escrow.

The Escondido, Calif.-based North County Times documented similar practices in an article published in November.

Title insurer Fidelity National Financial, in the September 2009 edition of the company's newsletter, "Fraud Insights," documented a case in which a second lender demanded a $9,141 payment outside of closing that had supposedly been negotiated between a buyer and short-sale negotiator.

There's some anecdotal evidence that short sales provide opportunities for "property flopping," in which a real estate agent, instead of actively marketing a short sale or REO property, works with an investor to facilitate a sale of a property at much less than its market value.

Jim Klinge, a San Diego broker-owner, writes about interesting transactions on his blog bubbleinfo.com, and posts videos as "Jim the Realtor" on YouTube.

One such transaction involved a property that was placed in a multiple listing service and withdrawn within 48 hours, eight months after the agent took the listing, he said.

"The only thing I could think of was (the agent) had that short-sale cooking, and the bank must have come back and said, 'You didn't put that on the MLS,' " Klinge said in a recent video.

Contacted by Inman News, Klinge declined to identify the agent.

"I could give you dozens of examples, and yet (it appears there is) nobody doing anything about it," Klinge said.

The HAMP and HAFA programs can tap up to $75 billion from the $700 billion Troubled Asset Relief Program (TARP).

LOOK BACK TO THE FUTURE!

Life has been described as a path, a direction in which we travel over time - rather than a single event. Each of us gets to choose the direction our path will take us. By making those choices, we also clear the way to achieving the objectives we've set for ourselves.

When we fail to choose the path we will travel, that is also a choice. In that case, the path we travel becomes less distinct with more twists and turns than we would have liked. Each side path we encounter tempts us to change direction. Lacking any roadmap of objectives we might have chosen, we often end up somewhere - else.

Regardless of the quality of our choices, we can get a clear understanding of where we are likely to end up - just by turning around. By simply looking back at the path we have been following, much can be learned. For example, is the path behind us straight, or filled with curves and detours taken? Is it paved with solid, masterfully laid stepping-stones, or filled with muddy ruts that zig-zag around every obstacle?

Chances are that, as teenagers, most of our paths seemed to have had many twists and turns. As we matured and learned from our mistakes, however, it is also likely that we began improving the direction and quality of the path we traveled. The more attention we paid to the path, the more enjoyable the journey became.

Want life to be a most pleasant journey? Build your own roadmap - then start paving!

It's a common fact that clean homes net more money. Most people are turned off by even the smallest amount of uncleanness or odor when looking at homes to purchase. Sellers lose thousands of dollars because they do not adequately clean their homes or rid them of offensive odors.

If your home is squeaky clean, you will be able to sell your home faster and net more money.

If you are planning on moving, why not get rid of that old junk now so that your house will actually appear larger? Make more space. Odors must be eliminated, especially if you have pets, young children in diapers, or a smoker in the house. A little work now can pay huge dividends at closing! 

It's a common fact that clean homes net more money. Most people are turned off by even the smallest amount of uncleanness or odor when looking at homes to purchase. Sellers lose thousands of dollars because they do not adequately clean their homes or rid them of offensive odors.

If your home is squeaky clean, you will be able to sell your home faster and net more money.

If you are planning on moving, why not get rid of that old junk now so that your house will actually appear larger? Make more space. Odors must be eliminated, especially if you have pets, young children in diapers, or a smoker in the house. A little work now can pay huge dividends at closing!

Nathan

I also have this website application on my iPhone and it is ver cool.

Next is DIYorNot.com. This site helps you compare the time and cost of doing a project yourself vs hiring a local contractor.  For example, the cost of having a professional replace a stove hood is $538 vs a 'do it yourself' cost of $400. Costs can be adjusted by Zip code. 

Nathan

Hurry! Tax Credit Expires Soon!

The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000. Current homeowners are also eligible for a tax credit of their own. Homeowners who have lived in their primary residence for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.

 The following conditions apply:

• The tax credit is only awarded on homes purchased for $800,000, or less
• Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly
• Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
• Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.

The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by!

Existing Home Sales Up From Year Ago

Existing home sales are up in 2010 compared to the same time a year ago. According to the National Association of REALTORS (NAR), existing homes sales -- including single family, condominiums, townhomes and co-ops -- were up 11.5 percent from January 2009 levels. At the current pace, NAR is projecting existing home sales of 5.05 million units for the year. Total housing inventory is down 0.5 percent to 3.27 million units nationally.

NAR chief economist Lawrence Yun is watching the sales data very closely. "Activity should be picking up strongly in late spring as buyers take advantage of the tax credit, which is critical to absorb distressed properties reaching the market and to continually chip away at inventory," Yun said. "With a downtrend in the number of homes on the market, especially in the lower price ranges, values are beginning to firm but with great variance around the country."

Mortgage backer Freddie Mac reported an average commitment rate for a 30-year, conventional, fixed-rate mortgage of 5.03 percent in January. This is up slightly from 4.93 percent available in December 2009, but down overall from a year ago when the rate was 5.05 percent in January 2009.

Investing in Real Estate

Today's low interest rates and stabilized home prices have created some great investment opportunities!  Investing in real estate has unique advantages over other types of investments:

• Interest in mortgage loans are tax-deductable.  Investors can lower their tax liability while increasing their equity.
• Renters pay down your mortgage loan.  Investors reap the benefits of rental income, which offsets your mortgage cost and build equity.
• Real Estate values increase over the long term.  Real Estate is limited and will always be in demand. 
• 1031 exchanges are available to defer taxable income when you are ready to sell.

Many investors are taking advantage of these great market conditions. Have questions? Give us a call. We are happy to help!

Visit us online at www.nathanbangs.com

Good Morning,

What a great weekend for me and my family, I hope yours was great too.

In this weeks Morning Coffee message the topic is, "THROW AWAY THE BAND-AIDS!" See the bottom of this email to read more.

I have been getting lots of calls for Single Family Homes so I have included the homes we have 'active' all over Tampa Bay.

My next email will be this months Market Trends Newsletter, should have that finished up today or tomorrow.

Thanks,

Nathan Bangs

And Here's Your Morning Coffee!

Nathan Bangs & Associates

Nathan Bangs & Associates, Keller Williams Realty
3502 Henderson Blvd., Tampa FL 33609 For Sellers: 813-739-5965

Visit http://www.nathanbangs.com

Are you seeing the same? 

Thanks,

Nathan

www.nathanbangs.com

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

AVERAGE RESIDENTIAL SALES PRICE

The Average Residential Sales Price represents the average sales price of closed residential sale transactions as reported through the MLS for single family homes, townhomes, condominiums, and villas.  As noted on the GTAR website, these figures do not represent private sales or new construction sales unless entered into MLS.  This is only one of many available indicators, but taken consistently over time, provides a good view of residential market activity.

The optimism view - The January 2010 average residential sales price of $180,151 represents a 5.42% increase over last month, a 5.39% increase over last quarter (3 months ago), and a 7.95% increase over January of 2009 (which happens to be the lowest point over the last 5 1/2 years).  We certainly seem to be finding support at this level.  After about 18 months of finding news lows every month, we have spent the last 12 months supporting the low found in January 2009.  Hopefully this indicates an end to plummeting home values.

The reality of what we've been through - The January 2010 average residential sales price represents a 29.78% decrease from 2 years ago, a 35.72% decrease from 3 years ago, and a 42.33% decrease from the high of $312, 356 hit in July 2006. 

TOTAL RESIDENTIAL SALES

Total Residential Sales represents the number of closed sale transactions as reported through the MLS for single family homes, townhomes, condominiums, and villas.  As noted on the GTAR website, these figures do not represent private sales or new construction sales unless entered into MLS.  This is only one of many available indicators, but taken consistently over time, provides a good view of residential market activity.

In January 2010, GTAR reports 1,015 residential sales.  This is down 30.67% from last month, down 32.02% over last quarter (3 months ago), and up 23.48% over January 2009. 

This January figure is also down 66.93% from the high reached in June 2005 when 3,069 residential sales were reported, but up 43.56% from the recent low reached in January 2008 when only 707 residential sales were reported.

Please click the link below to access a pdf file with the data and graphs.

January 2010 Market Activity Data and Graphs

Monthly Foreclosure Activity

The first public notice of a foreclosure is the recording of a legal document called the Lis Pendens.  This typically happens after the homeowner has missed about 3 mortgage payments.  The Final Judgment of Foreclosure is recorded next, detailing the amount owed including principal, past due interest, fees, etc.,  Finally the foreclosure sale is held.  The winning bidder at the foreclosure sale, or the foreclosing lender if no one bids, acquires title via the next recorded document, the Certificate of Title.  This process takes about 8 months, barring any delays.  Because lenders are not really in the business of owning real estate, they will now attempt to sell this REO (Real Estate Owned) property and move it off their books, often times at deeply discounted prices.

In January 2010, there were 2,238 Lis Pendens filed in Hillsborough County alone.  Keep in mind that there were on average 398 Lis Pendens filed in Hillsborough County during the 24 month period from August 2004 to July 2006.  This is a 464.31% increase.  Over the last 24 months there have been an average of 1,933 Lis Pendens filed every month.

As of this writing, there are 1,890 Lis Pendens filed so far in February.

Please click the link below to access a pdf file with the data and graphs.

January 2010 Foreclosure Activity in Hillsborough County 

Thank you for your time this month.  As always, If I can do anything to help you, please let me know. If your contact information has changed recently, please click here to update our records.  Thanks!

Rob Young
Benefit Title Services, LLC
212 S. Magnolia Ave.
Tampa, FL 33606
Phone: (813) 251-1420
Toll Free: 800-237-9190
Fax: (813) 251-1454
RYoung@BenefitTitle.com
www.BenefitTitle.com

See attached link for an index of every county in Florida- it contains the Clerk, Property Appraiser and Tax Collector. Each county has specific requirements to file for homestead exemption.

http://publicrecords.netronline.com/dir.aspx?StateID=11

Visit us online at www.nathanbangs.com

Ok, so I am a little late with today’s weekly Morning Coffee with Nathan Bangs message.  I am in New Orleans, Louisiana for the national Keller Williams Real Estate Reunion.  What a weekend it has been!  So many great agents, people and IDEAS to help market, sell, buy and invest in Tampa Bay homes. I will come back a stronger and more educated Real Estate Agent!

How are you?  Glad you let me come into your inbox every Monday to educate you on Tampa Bay Real Estate, Inspirational Message and homes we have for sale OR have SOLD!!

The two properties I have featured this week are TWO sold homes, see them below.  WHY would I feature homes that are no longer on the market?  Well to show you the great deals that are in the Tampa Bay market...I still cannot get over the home we sold in Lutz on Patton Court. A Bank Owned / REO sold for $200k 30 days prior and we closed at $180,000 yesterday!!!  That is 10% below what someone else paid 30 days before...how did we do it...well you will need to speak with one of my Buyer Agents to get that Short Sale secret...email us at www.HotBankBuys.com and we will email you a list of Bank Owned properties for sale, want short sales included?  Just tell us!

Also for you Sellers, want to know the value of your Tampa Bay property?  Would you like an instant report without talking to me!?  :)  Email me at www.ValueMyTampaAreaHome.com and I will send you a really, really cool report with the active, pending and sold homes in your area....

Question?  Are you on Facebook?  become a fan of our page www.facebook.com/TampaRealEstate

Twitter?  www.Twitter.com/NathanBangs

Well enjoy this week’s message below and please if you know someone who is looking to Buy, Sell or Invest in any Real Estate, not just Tampa Bay please think of me and my team....and if someone is having a hard time with their current mortgage we have options for them...visit  www.TampaBayTroubledHomes.com 

Thanks, Nathan

And Here's Your Morning Coffee!

Nathan Bangs & Associates

Nathan Bangs & Associates, Keller Williams Realty
3502 Henderson Blvd., Tampa FL 33609 For Sellers: 813-739-5965


Visit http://www.nathanbangs.com

Nathan Bangs & Associates Tampa Bay Office - 813.739.5965

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Are You Facing Foreclosure Click me?     Analysis of your Tampa Bay Homes Value

http://bit.ly/9QEUUx

Nathan Bangs & Associates Tampa Bay Office - 813.739.5965

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