Ris Media had an interesting article that is an interesting perspective on Family reunions. Family reunions are taking on a new meaning in the real estate market. According to a recent survey, 37% of sales professionals surveyed noted an increase in home buyers looking to purchase homes to accommodate more than one generation of their family. In addition, many sales agents believe that economic conditions may cause greater demand for multi-generational homes in their market during the next year.
Financial drivers as the No. 1 reason why home buyers or sellers are moving into a house with other generations of their family (39%). Twenty-nine percent said that health care issues are the primary reason, and 6% cited a strong family bond as the main factor.
While saving money is certainly an incentive for buying a home that accommodates multiple generations, the benefits go beyond just financial reasons. With two or three generations living under one roof, families often experience more flexible schedules, quality time with one another and can better juggle childcare and eldercare.
It is important to determine how comfortable the family members are about sharing bathrooms, office space or common areas. These topics are incredibly important in finding the right kind of home to fit the family.
Helpful Hints:
-Sellers with “mother in-law suites” or additional spaces that could accommodate a family interested in a multi-generational living arrangement should highlight this aspect of the home. Whether it’s a garage apartment or refurbished basement, this separate space can help one home stand apart from the others on its block.
-Buyers must be clear about their exact needs. Some families may just want an extra bedroom or two for family members, while others require areas with a separate kitchen, entrance, handicap accessibility or even a larger garage for additional cars. Desired location may also be influenced by proximity to local hospitals, senior centers or other important activities to family members.
-Extended families purchasing a home together should consider signing a written contract outlining everything from finances to chores and childcare. Each family should assess their situation individually and find a plan that works best for them.
Tax breaks are set to expire:
Buyers, rushing to beat the tax-credit deadline, may set off a flurry of April deals. One more reason prospective buyers and sellers may be tempted to move quickly: the looming expiration of valuable tax credits that have been dangled by Uncle Sam to spur sales. Homeowners who move can get up to $6,500, first-time buyers as much as $8,000, as long as they have a joint income of less than $245,000 (or $145,000 for singles). But there isn’t much time left to act because buyers must be under contract on the new home by April 30 and close by June 30 to qualify for the credit. Look for transactions to pick up as the deadline nears. When the credit for first-time buyers was originally set to expire last November, sales surged in the three months before the cutoff. Experts expect a similar pattern this final month before the tax breaks expire.
Pre-foreclosure timeframes in the State of California are as follows:
- You stop paying your mortgage for about two months
- The Bank files a NOD (Notice of Default) against your property and the clock begins to run
- 90 days after the bank files the NOD, the bank can then file a “Notice of Trustee’s Sale”
- 15 days after the bank files the “Notice of Trustee’s Sale”, the ability to redeem a property goes away
- 21 days after the bank files the “Notice of Trustee’s Sale”, the bank may sell your home at auction.
What we are seeing in practice is that the banks are not sticking to the 21 days to sale after filing the “Notice of Trustee’s Sale”, but are using an arbitrary number of 31 days.
Because the banks are so inundated with requests for short sales and loan modifications, the extra 10 days has been added most of the time to accommodate them. The sale date can be postponed by the bank and often is, if there is a short-sale in progress. Don’t become complacent just because a sale date has been postponed. The bank filed the original “Notice of Trustee’s Sale” to keep the clock running and to have control of the process. At anytime the bank can move to force the sale.
Many sellers don’t realize they have options when their home enters the foreclosure process. They do have options and it is in their best interest to seek them, even when they are not sure, if they can be helped.
1. The upfront mortgage insurance premium (UFMIP) will increase to 2.25 % up from 1.75% and FHA will continue to allow the financing of the UFMIP.
2. Borrowers with a credit score below 580 will be required to have at least 10% down payment. Borrowers with credit scores over 580 will remain at 3.5%. FHA will seek legislative authority to increase the annual premium which is now capped at .55 percent. If FHA can increase the annual premium, it may be able to reduce the up-front premium.
3. Seller concessions will be reduced to 3% from 6%.
FHA will make the following lender enforcement changes:
1. FHA will implement credit watch terminations at lender underwriting.
2. A public reporting of a lender’s performance using a scorecard system will be implemented.
3. FHA will implement, using notices and comments, indemnification against lenders. Indemnification will be expanded beyond fraud and misrepresentation.
4. FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.
5. FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.
The FHA is an integral part in continued recovery of the real estate industry and the overall economy. The National Association of Realtors will continue to work with FHA, the current administration and the Congress to ensure the FHA can fulfill its mission while providing for the safety and soundness of the insurance fund. It will be important to balance risk management while creating homeownership opportunities across the US.
How is the market?? Are you a buyer, a seller, an investor or a renter? It is different for each of you.
As a buyer, you are probably wondering, if you should be buying now? Ask yourself the following question. Are the interest rates “true rates” or are they “incentive” rates? It is my opinion they are “incentive” rates to get buyers to purchase. Where are rates headed? There is only one way they are headed and that is higher. When will this happen? Probably the first quarter of 2010. Why will they head higher? There are a couple of reasons. One is the bond market and the other is the weak dollar. What does that mean for you, as a buyer. It means you should probably seriously consider buying at this time.
As a seller, how is the market? Today’s news is that home sales and home prices are rising. How can it be that home sales and home prices are rising when there are so many short-sales? That is exactly why they are rising. Buyers are perceiving short-sales as great values. This is generating multiple offers and the properties are selling for over the listed price as buyers clamor for a “deal.” This is setting new and higher price points, so sellers, knowing that the interest rates are going to rise and a certain percentage of your buyer audience will disappear, it is my opinion you should be realistic about your price and sell. After all, you can go out and find yourself one of those wonderful deals, as a buyer, before they are all gone.
As an investor, you are having a heyday. When have you seen properties in higher end markets cash flow? You just can’t spend your money fast enough. Good for you! Cash is king and, if you have cash……..invest and invest.
What about renters?? Normally in times when foreclosures increase, rental prices increase. As more people need to rent homes the law of supply and demand ususally creates higher rental prices. Well, that is not what I am seeing in the marketplace at this time. In fact, I am seeing a decrease in rents. Landlords, if you have a good tenant, keep that tenant. You may not be able to replace that tenant with a like-paying one. So, how is the market?? It is different for each of you, depending on how you classify yourself.
Sellers-the amount of buyer traffic right now through homes is the most I have seen in 23 years. The buyers are determining that now is the right time to buy. When you look at the combination of rock-bottom prices and historically low interest rates, the buyers are recognizing this opportunity is short-lived. Food for thought for both buyers and sellers, Do you think the interest rates we are now enjoying are true rates or incentive rates? They are incentive rates to encourage the purchase of homes. The prediction is Mortgage rates will rise in the first quarter of 2010, because of the weak dollar. It is the old saying “you know what you have, but you don’t know what you’ll get.” Keep your home on the market.
In this down economy I have learned that all of those THINGS that I used to think I had to have are, after all, just things. Things can be taken from you in an instant. One day you can have all of the things you ever wanted and the next they can all be gone.
In taking personal stock of the situation, I have realized that the things that money can’t buy are the things that are really important. When I look around my world, I am surrounded by the deep love of seven children and four grandchildren, 2 extraordinary sisters, a passel of nieces and nephews, a great aunt, brothers-in-law and a son-in law. I have wonderful friends, some of whom I have known since I was very young. I have the respect of my peers. I was blessed with a great brain and an endless thirst for more knowledge. I have traveled the world, flown on the Concorde, crossed the Panama Canal, learned to speak Spanish and Italian, have no fear of public speaking, love my profession, personally cared for both my parents until the day they each died at home, have helped make the difference in a family of six, have taught my children and grandchildren a slew of board and card games, have a piece of the Berlin wall, have seen the Whirling Dirvishes and ridden a camel. I have truly had an extraordinary life. While the majority of the things may have disappeared, the memories of of a life fulfilled is the greatest gift of all. No one can take my intelligence or break my spirit. I am the eternal optomist and a big dreamer. Oh yes, I can have those things again and I will have the ones I really want, but this time will be different. I will have an appreciation of the real price I am paying to have those things. I know one thing for sure, those things can never replace the priceless gifts life has given me.
I don’t know about you, but I am extremely upset with the banking system in this country. First they take government money allegedly to lend it to homeowners and it sits on their balance sheets so they can present a “new and improved” personna for their own personal agendas. We all thought that with the bailouts, the consumer would have some benefit, the housing market would be stimulated and we would exit this recession quickly. We should have know better. It is greed that got us into this recession and it is greed that is prolonging it.
I received a notice from my bank that I was overdrawn. I was so surprised, as I had opted out (you have to opt out) of letting the bank pay any checks for which there were not sufficient funds. How does this happen?? I spoke with a very nice young man behind the counter who suggested I call the number on the back of my ATM card and that I should record the call. He had had a similar problem (he works for the bank), so I heeded his advice.
When I called the banking number, I told them I was recording the call and the gentleman on the other end of the phone said he would not speak with me and he would be calling his supervisor. When the supervisor came on the line I explained the situation. What I learned next just irritated me so much I am writing this blog to warn others of the “Shadow Greed” that lies in wait for you.
Once you tell the bank (opt out) that you do not want them to pay any checks for which there are not sufficient funds, they are happy to accommodate. Why? Now they are going to charge you for Non Sufficient Funds up to $140/day and you will probably be charged by the institution to whom you authored the check. I got their game immediately. Basically you have a choice. Pay an overdraft fee or pay a NSF fee plus any other costs. How could I have been so naive as to think we consumers were actually getting a break?
There is no limit to which the banks will go to squeeze us dry with their fees. I, for one, am sick of it. When they are paying 0.5% on CD’s, we might as well keep our cash in a safe at home. We give the bank $100 and for letting them use our money, we are rewarded with a $.50 return after a year. What a joke!! That is less than one cent per week on a $100 deposit.
Of course the banks spin this debacle, so the consumer thinks these crazy fees will be banned or reduced. Don’t kid yourself. We are only going to see more and more of this kind of egregious business practice, but it will not only be by the banks, but any large industries that can get away with it.
I have always so believed in my country, but, as of late, I am disillusioned. The American people are great people. We have a sense of community that is the envy of the world, but those in charge seem to have forgotten. We need to come together to restore the greatness that America once represented. I’d love to hear from any of you out there. I don’t think I am a minority in my thinking. As many hands make “light work”, many minds coming together can create greatness. Let’s begin today.
I just had to write about this, as it touched me deeply. Sunday mornings are reserved for my granddaughters. We have a special routine for Sunday mornings. As many of us as are available jump in our cars and meet at Denny’s for breakfast. It is a special time when we focus on one another without outside interruptions. Our darling waitress, Miriam, always greets us like we were her family members. She has remembered from day one what beverages and breakfast specialities we each like. She makes our Sunday mornings extra special and it wouldn’t be the same without her.
This morning, it was different, as Miriam was not there. It just wasn’t the same, but we were told she will be back next Sunday. It sort of started our breakfast experience off on a bit of a down notes. After breakfast, my granddaughters routinely go to a game in the restaurant where you can win all kinds of stuffed animals just by picking them up with a special claw. You must guide the claw to just the right spot. Once there you drop the claw and, if, you are lucky when the claw rises up again, it will have an animal in its mouth. Denny’s has lost money on these two, as they rarely leave without a prize. They have both become quite skilled at the game. Today was different. After about $3 worth of tries, my youngest granddaughter returned to the table, obviously disappointed that she had been unable to win anything. I asked her what she had her eye on and she told me it was a big bear in the corner. He was so wedged in the corner, it would have been a nearly impossible feat to obtain him. We all consoled her and talked to her about how many times she had been victorious in the past and perhaps next week she would win another prize.
As we were finishing our breakfast and getting ready to pay our bill, I saw a very large man sitting alone having breakfast. He got up from his seat and walked over to the machine. It was a little surprising to see a man alone playing this game. I kept watching him out of the corner of my eye as he tried time and time again to dislodge the bear. My heart panged a bit, because I knew how much Alexis wanted that bear. This man had an amazing technique he used to dislodge the bear and I was thoroughly fascinated watching him. He kept putting money into the machine until he finally got the bear. He plucked it from the machine, walked over to our table and handed it to my granddaughter. We were all just stunned. What a beautiful act of random kindness. She just kept saying, “my goodness, my goodness.” We all started talking about what a wonderful thing he had just done. His random act of kindness was one that would, once again, restore our faith in humanity. We all went to his table one by one to tell him what a wonderful act of kindness he had performed. His smile got broader and broader. As I left I wasn’t sure who had recieved the most joy from this random act of kindness, but I knew I was leaving with my family and he was still sitting there all alone.
Beware, buyers. Please watch this video, before you make an offer on a short sale. There are some important facts you should know. http://www.youtube.com/watch?v=qA3X8kE8URU
