Omaha Houses Blog

Federal Reserve Calling For More Action To Improve Housing

2012-01-05T09:50:00.000-06:00

(The Hill) The Federal Reserve is turning its attention to reviving the ailing housing market, calling on policymakers to provide a boost to the sector and lift the broader economy.

The Fed on Wednesday sent a 26-page white paper to Congress, providing a framework — including several steps that are already in the works within the Obama administration — designed to provide greater stability for the sector and the overall economy.

(read the article here)

Foreclosures Down 14% Over This Period Last Year

2011-12-20T09:42:00.000-06:00

November Foreclosures Down 14 Percent from 2010

By Steve Cook

RISMEDIA, Tuesday, December 20, 2011— Foreclosure filings decreased 3 percent from October, and 14 percent from November 2010.

Default notices were filed for the first time on a total of 71,730 U.S. properties in November, an 8 percent decrease from the previous month, and down 9 percent from November 2010.

Foreclosure auctions were scheduled on 96,540 U.S. properties in November, up 13 percent from October, but still down 17 percent from November 2010.

Scheduled foreclosure auctions increased more than 35 percent on a monthly basis in several states, including California (up 63 percent), Washington (up 56 percent), Ohio (up 53 percent), New Jersey (up 44 percent), and New York (up 38 percent).

Lenders repossessed (REO) a total of 56,124 U.S. properties in November, a 17 percent decrease from October and also a 17 percent decrease from November 2010. REO activity in November was at its lowest level since March 2008, a 44-month low.

Nevada posted the nation’s highest foreclosure rate for the 59th straight month in November despite artificially low foreclosure activity caused by a new state law that took effect in October (AB 284) that alters the foreclosure process in the state. A total of 6,512 Nevada properties received a foreclosure filing in November, up 3 percent from a 45-month low in October, but still down 43 percent from November 2010. One in every 175 Nevada housing units had a foreclosure filing in November, more than three times the national average.

Scheduled trustee’s sales in California hit a 10-month high in November, helping the state maintain the nation’s second highest foreclosure rate: one in every 211 properties with a foreclosure filing during the month. A total of 26,509 trustee’s sales were scheduled in California in November, up 14 percent from November 2010—the first year-over-year increase in scheduled foreclosure auctions in California since March 2010.

Arizona foreclosure activity increased on a year-over-year basis in November for the first time since October 2010, and the state posted the nation’s third highest foreclosure rate for the fifth month in a row. One in every 256 Arizona properties had a foreclosure filing in November, more than twice the national average.

Substantial monthly increases in foreclosure activity in Utah and Georgia lifted those states’ foreclosure rates into the nation’s top five in November. Utah’s foreclosure rate of one in every 290 housing units with a foreclosure filing ranked No. 4 thanks to a 74 percent monthly increase in foreclosure activity, and Georgia’s foreclosure rate of one in every 330 housing units with a foreclosure filing ranked No. 5 thanks to a 23 percent monthly increase in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 were Michigan, Florida, Illinois, Ohio and South Carolina. There were a total of 63,689 California properties with foreclosure filings in November, the most of any state and 28 percent of the national total. Florida foreclosure activity in November decreased 25 percent from a 13-month high in October, but the state still had 24,739 properties with foreclosure filings during the month—the nation’s second highest total. There were a total of 13,777 Michigan properties with foreclosure filings in November, the nation’s third highest state total despite a 14 percent decrease from October. Illinois documented the fourth highest state foreclosure activity total in November, 12,398 properties with foreclosure filings, and Georgia documented the fifth highest state foreclosure activity total, 12,327 properties with foreclosure filings during the month.

California cities account for nine of top 10 metro foreclosure rates. Nine out of the nation’s 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more were in California. The only exception was Las Vegas, which ranked No. 6 with one in every 150 housing units with a foreclosure filing in November. With one in every 120 housing units with a foreclosure filing during the month, Stockton, Calif., posted the nation’s highest metro foreclosure rate for the second month in a row.

There were a total of 1,913 Stockton properties with a foreclosure filing in November, up 20 percent from the previous month and up 9 percent from November 2010. The increase in Stockton was driven largely by a 65 percent month-over-month increase in scheduled foreclosure auctions. The eight other California cities with foreclosure rates ranking among the top 10 all posted double-digit percentage increases in scheduled foreclosure auctions in November, ranging from a 37 percent month-over-month increase in Modesto to a 100 percent month-over-month increase in Fresno.

U.S. Will Remain a Nation of Homeowners

2011-11-17T09:16:00.000-06:00

(RIS Media) The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the “Buyer or Renter Nation?” session held at the 2011 REALTORS® Conference & Expo last week.

An analysis over a 31-year period across 23 metropolitan areas compared the ownership benefits in terms of appreciation and interest deductibility and the costs homeowners incur with down payment, taxes, insurance and maintenance. When it was assumed that renters reinvested any savings in rent (versus a higher monthly mortgage payment), maintenance and down payment, renters had a greater portfolio than buyers in 91 percent of the areas examined. However, when the model allowed renters to spend any savings rather than reinvest those savings, 84 percent of buyers came out ahead.

(read the rest here)

Homeownership Rate Rises After Two Years of Decline

2011-11-08T09:36:00.000-06:00

From DSNews.com: After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time. In fact, according to Bloomberg, the third quarter rise is the first in two years.

Read the entire article here.

Property Taxes on the Rise

2011-11-04T09:26:00.000-05:00

RISMEDIA, Friday, November 04, 2011— Get ready for record property tax rate increases next year, as cities and counties across the nation cut their budgets and scramble for every tax dollar they can find.

The huge 20 or 30 percent declines in property values that took place in 2006 and 2007 took a long time to make an impact on homeowners’ bills because of the way local governments assess properties. But those big drops are finally being felt, and local governments are complaining.

It stands to reason that those local governments that can raise property taxes are quietly preparing boosts in their tax rates to make up some of the difference. Many cities are precluded from raising rates by local and state laws like California’s Prop 13 that make it difficult to increase property tax rates.

However, this year 20 percent of cities increased their property taxes, according to a National League of Cities survey, which will be felt in next year’s tax bills. Next year the outlook is that another 20 percent will raise tax rates

According to the survey released last month by the National League of Cities, city revenues are continuing to fall 2.3 percent by the end of this year, making 2011 the fifth straight year of declines in revenue with probable further declines in 2012. The revenue decline is mainly due to the fall off in property tax revenues, which are expected to decline by 3.7 percent with further declines likely in 2012 and 2013.

Cities are responding by cutting personnel (72 percent), delaying infrastructure projects (60 percent) and increasing service fees (41 percent). One in three (36 percent) cities report modifications to employee health care benefits.

“The cuts in personnel and the delaying of infrastructure projects are prudent and responsible actions by local officials,” said Donald J. Borut, Executive Director of NLC. He continues, “City officials are a making difficult decisions and are working hard to find innovative solutions to reenergize their communities. But without more resources and more cooperation, the outlook will continue to be challenging.”

Newsletter #2 Available Now - FREE!

2011-11-02T09:41:00.000-05:00

The second edition of the team's e-newsletter, The Bobbi and Cathy Chronicles, has just been sent out. If you'd like to read it, please click on the above picture. You can sign up for future editions - totally free! - there, as well. Or just sign up below:

Joke of the Day

2011-10-28T11:41:00.000-05:00

Two blondes were sipping their Starbucks when a truck went past loaded up with rolls of sod. "I'm going to do that when I win the lottery," announced Blonde #1.

"Do what?" asked Blonde #2.

"Send my lawn out to be mowed."

Fed To Keep Interest Rates Low For Next Two Years

2011-08-09T16:10:00.000-05:00

The Board of Governors of the Federal Reserve released a statement today that read, in part, "The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013."

Translation: interest rates to remain low through 2013!

The Impact of Short Sales and Foreclosures on Credit Reports

2011-04-21T10:45:00.000-05:00

Please take a few minutes to read this article about what effects a short sale or foreclosure could have on your credit score.

Money quote: "FHA adopted guidelines in 2010 that say a seller who is current and does a short sale may qualify to immediately buy another home. Lenders aren't so quick to follow those guidelines. However, Flagstar Bank gave an Elk Grove short sale seller a new loan within 2 months of closing his short sale, and that seller was current at the time."

Unique Ranch on Over 10 Acres!

2011-04-20T10:37:00.000-05:00

18612 18 Street, Plattsmouth, NE - $224,900
3 bedroom, 2 bath Ranch in Plattsmouth
For more information go to: Omahahouses.com/18612

Our Big Announcement!

2011-04-19T16:06:00.000-05:00

click to enlarge

Just in case you haven't already heard the big news, we decided to blog about it for you. Bobbi Leibowitz and Cathy Blackman, two of Prudential Ambassador's top agents, have combined into one team...The Omaha Houses Team.

The team not only features Bobbi and Cathy, but it also boasts four buyer agents (Dee Caniglia, Janet Cooper, Nicki Matthews, and Chip Gamerl), and two full-time staff members. Here is a picture of the new team:


Top: David, Dee, Nicki, Janet, Wendy, Chip. Bottom: Bobbi and Cathy

New Website Look

2011-04-05T11:06:00.000-05:00

The "new" OmahaHouses.com

We are about to make a big announcement regarding the team. You can get a glimpse of the news by checking out the new splash page at OmahaHouses.com.

New Bobbi Interview

2011-02-17T09:10:00.002-06:00

Here is a video of Bobbi being interviewed by Jeremy Wilhelm of the Private Mortgage Group. In the interview, she discusses the current state of the real estate market, as well as recounting some stories from her many years in the business.

Interest Rates on the Rise

2010-12-21T10:03:00.002-06:00

If you are thinking about buying a home - and you should be if you do not presently own one - interest rates are on the rise.
Now is the time to maximize your buying strength with a rate that is between 4 3/4 and 5 %.
Don't wait til you've missed "the parade."

Never again for interest rates

2010-12-01T14:03:00.002-06:00

I wanted to reach out to you before it's too late. You may have heard that home loan rates reached record lows in October.

But – and this is an important but – it is more important than ever to act now.

Over the last week, rates have started rising again due to a combination of good economic news and the Fed's latest Treasury Security purchasing plan. In fact, over the last week rates have risen 0.25%! That's right – 0.25%!

While some people say good things come to those who wait, others say to strike while the iron is hot. In this case, the "iron is still hot" with rates at exceptionally low levels, but it's starting to turn, and quickly. And we will quite likely never see home loan rates this low again.

Buying a House Has Changed

2010-11-17T10:36:00.003-06:00

Five years ago, a buyer spent 3-4 weeks looking for a home and saw 15-20 homes. But, today, it is taking alot longer due to the increased inventory. So here is some advice on how to speed up the process:
Do enough looking to get to know our local market. Adjust your expectations - meaning be sure what you are looking for exists in our market.
Let your emotions help you. By only looking at price and condition, you may feel that a "better deal is out there" and keep on looking. However, it is the place where you and your family will be living. Bring the feelings into the decision. Is this a good place for us to ...raise our kids, etc.
Decide if a distressed property is really right for you. Foreclosures and short sales offer buyers great value when it comes to price per square foot, but they often have their own limitations. Foreclosures often have serious condition issues and are almost always sold "as is," meaning the seller will make no repairs. Then, you, the buyer, may need to carry out extensive repairs after the purchase. Short sales, generally with better conditions, can take months to close. And many times, the transactions fall apart because the lender, seller and buyer can't agree.
Don't focus too heavily on price. By price concentation, you may fail to consider the other benefits of buying - the tax deductions you'll get when you own rather than rent, the amazingly low interest rates now available and the benefits of living in a home and community that fit your family.
Be ready to negotiate. Make an offer that you are comfortable with. At worst the seller won't negotiate. But in this market, that is unlikely. Sellers do not want a viable buyer to walk away. In this market, the sellers have been doing the most compromising.
Don't let negative comments about the housing market scare you off. Don't lose sight of the many positives in the current market - the fact that home affordability is at its highest in decades and investors are flocking into the market to snap up bargains in all-cash purchases. Keep your eyes on the numbers that directly impact you - property prices, interest rates and how that translate into monthly payments.

10 Reasons You Should Buy a Home Now

2010-10-19T09:14:00.001-05:00

From MSN/Wall Street Journal: 10 Reasons You Should Buy a Home Now:

1)You can get a good deal
You can get a house at a bargain price now -- especially if you play hardball. This is a buyer's market. Most of the other buyers have vanished since the tax credits on purchases expired.

We're four to five years into the biggest housing bust in modern U.S. history. And prices have come down a long way -- about 30% from their peak, according to the S&P/Case-Shiller Indices, which track home prices in cities across the country. Yes, it's mixed. New York's prices are down only 20%. Arizona's have been halved.

Will prices fall further? Sure, they could. You probably won't catch the bottom, but it doesn't really matter so much in the long haul.

(Read the rest here)

Fewer Buyers

2010-10-16T11:02:00.002-05:00

If you are a buyer of real estate right now, you are in a great position! Interest rates are SPECTACULARLY LOW. And alot of other buyers are staying out of the market.

Nearly 2/3 of Americans (63%) say they are less likely to purchase a new home because of concerns about the economy, according to a survey by Findlaw.com, a division of Thomson Reuters.

In particular, economic conditions appear to be driving lower-income families out of the housing market. Families with annual incomes of less than $50,000, were more likely to say they are less inclined to buy a house than people with higher incomes. Strict lending requirements are making it more difficult for many people to obtain mortgages, the survey says, and high unemployment rates are raising concerns about housing appreciation, affordability and foreclosures.

Given all that, I'll say again. Now is the time to buy for the best prices, more choices and best interest. Go for it! Call my team today!

Looking To Start a New Career? Try Omaha

2010-10-07T10:08:00.001-05:00

In a new article at The Daily Beast, Omaha was ranked as the #2 city in America to re-start your career.

"Bottom line: When it comes to starting a second career, lots of factors come into play, but one thing is certain, it matters where you live. The place you pick is vital to your financial future. You might even change jobs again. It's okay to have third and fourth acts, too. So, you want to live where you can get traction in your new career and admittedly, have some back up if you change course again down the road."

Omaha was rated higher than places like Seattle, Dallas, Pittsburgh, and Washington, DC.

Did You Know?

2010-10-05T15:41:00.000-05:00

The Federal Trade Commission has amended rules governing free credit report offers in an effort to prevent deceptive marketing practices. Effective April 1, 2010, any advertising for a "free credit report" must include a disclosure statement notifying consumers that they have a right to a free credit report from AnnualCreditReport.com or by calling 877.322.8228, the only authorized services under federal law.

Three New Listings!!

2010-09-29T10:01:00.000-05:00

Swanson Towers Condo

This fantastic 2 bedroom, 2 bath condo in Swanson Towers has loads of new and is available for sale or lease! The Kitchen features recessed lites, a tile floor, a pantry, broom closet, new hardware, and a new refrigerator. The Living Room has recessed lites, opens to the Balcony and has a wetbar with a granite counter and stainless sink. The Master Bedroom has 2 large walk-in closets, a sliding door to the balcony and a Full Master Bath with granite counters, tile floor and a soaking tub. Bedroom Two has 2 closets and a door that leads to the 3/4 Bath with granite counters, make-up counters and built-ins. The Covered Balcony features a tile floor. New paint and carpet! 24 hour security, a pool, tennis courts, exercise room, and entertaining room, and underground heated parking are just a few of the amenities at Swanson Towers.

Totally Remodeled!

Loads of updates in this 3 bedroom, 2 Bath 1.5 story "arts & crafts" style home. The Kitchen has been completely remodeled (2010) and features a new stove, oven, dishwasher, microwave, counters, cabinets, window, and pantry. The Great Room has a ceiling fan and window coverings, while the Dining Room offers wood floors and crown molding. The Master Bedroom features wood floors, a walk-in closet, and a Sitting Room with bookcases. The Main Floor Office boasts wood floors, crown molding, and a sliding door to the large deck and huge fenced yard. The main floor bath has been remodeled with new tile, new tub/shower, new cabinets and a linen closet. Bedrooms Two and Three are on the 2nd level: Bedroom Two has a walk-in closet. The Loft has bookcases and new windows. The 2nd Floor Full Bath has also been remodeled with a new tub, new pedestal sink, new cabinets and wainscoting. Downstairs you’ll find a Family Room with trac lites and bookcases, Laundry Room with sink and lots of storage plus a 2nd Office. Other amenities include: 7” Baseboards throughout 1st floor, new exterior paint (2010), a fenced backyard with mature trees, plus central Air and Heat.

Take a Closer Look

Charming 3 bedroom, 3 bathroom Tri-Level in Elk Creek Crossing. The Kitchen features a vaulted ceiling with trac lites, a wood floor, and a tile backsplash. The Living Room boasts a vaulted ceiling and bay window. The Family Room includes a ceiling fan, wood floor, a tile fireplace with gas log and an atrium door to the patio. The Master Bedroom features a ceiling fan, crown molding, a walk-in closet and a 3/4 Master Bath with double sinks and a linen closet. Bedrooms Two and Three both have a ceiling fan, bookcase and are located on the 3rd floor along a Full Bath that has a vaulted ceiling with a skylite and Laundry Room with a hanging bar. Downstairs you’ll find a Rec Room that includes a fireplace with a gas log, a bar with a tile counter and floor and recessed lites. As for updates, the home has a new roof and exterior paint from 2008. There are built-in speakers throughout the house and exterior. There is also a nice patio and a sprinkler system outside, plus a security system.

For more detailed information on these listings and others, please go to OmahaHouses.com.

Take Inventory of Your Home

2010-09-23T09:58:00.000-05:00

You may not realize the value of your belongings. There is now free software that can keep track of everything that fills your home - from artwork and furnishings to jewelry - and quickly see how much it would cost to replace.

Once you download the free What You Own software onto your computer, you can create a room-by-room inventory that serves as a record that's helpful for determining how much insurance to purchase and when settling insurance claims. You can even add images and receipts.

Go to: whatyouown.org

ABC's of Home Ownership

2010-08-24T14:05:00.001-05:00

Found this humorous post entitled "The ABC's of Home Ownership" and thought I'd share:

A) Alarm systems are expensive, loud, and impossible to remember to shutoff every time you leave your home. Have a cup of coffee ready for the poor officer that gets sent out to your home.

B) Basements are an amazing place for storage until you get an inch of standing water in it from the first heavy rain and learn how to operate a wet/dry vac.

C) Concrete cracks, apparently pretty easily (in the garage, in the driveway, and even the sidewalk which YOU actually are responsible for).

Read the rest here.

JD Powers Select Prudential Real Estate Again!

2010-08-05T09:40:00.002-05:00

Prudential Real Estate & Relocation Services once again ranks highest for Seller Satisfaction in JD Powers 2010 Home Buyer/Seller study.

This is the second time in 3 years that Prudential has been ranked in that position. The study includes 3,096 evaluations from 2,817 respondents who bought or sold a home between March 2009 and April 2010. Overall satisfaction is determined by examining four factors for the home selling experience: agent (44%); marketing (30%); office (15%); and services (11%).

This latest honor comes just weeks after Prudential earned the distinction of having the highest average sales price in the nation, according to the 2010 Real Trends 500 study. The claim is based on analysis of transaction sides and sales volume data of the largest independently-owned brokers in the U.S. for franchise networks recording at least 25,000 closed transaction sides in 2009.

Low low interest rates

2010-08-03T05:45:00.002-05:00

Interest rates are at an amazingly low rate of 4.5%.

This is a fantastic time to buy a home - your dollar buys so much more. And the housing market values are still down. Add all that together and it is a true WOW!

Bobbi Helps Raise Money For Cystic Fibrosis

2010-07-19T14:56:00.006-05:00

Bobbi recently sponsored a hole at the First Annual Maddie McCarville Golf Tournament at Pacific Springs. The annual event raises money for Cystic Fibrosis. This year's tournament raised $7500.

(In the picture: tournament namesake Maddie McCarville (l) and Bobbi's Listing Coordinator, Nicole McCarville)

Bobbi's TV Interview

2010-07-14T10:13:00.001-05:00

Here are the two segments from Bobbi's interview on WOWT July 14, 2010 discussing the current state of the Omaha real estate market.

Lots of Benefits for Homeownership

2010-07-13T13:10:00.001-05:00

Home Ownership Still the best tax incentive for all buyers!

(rent = cost) The average rental rate in Omaha for a standard two bedroom apartment is $730. That is a cost out of pocket of $43,800 over five years!

(buy = save) A home buyer can receive an average of $11,000 in tax benefit and an average of $10,000 in equity over five years simply for purchasing a $125,000 home today.

The interest rates are the lowest they have been in 50 years! A borrower today is locking a rate at or below 4.75% on a 30 year fixed rate mortgage.

Catch Bobbi on TV Tomorrow Morning

2010-07-13T10:46:00.002-05:00

Make sure to tune in to WOWT tomorrow (Wednesday, July 14) at 6 and 6:30 am to see Bobbi interviewed about the current state of the real estate market in Omaha.

We will try and post video afterward. Check back!

Eco-smart

2010-07-09T09:53:00.003-05:00

Turning down the thermostat and switching to fluorescent bulbs are easy but common ways to make your home greener. Here are a few additional tips and tricks that may not have crossed your mind.

Over the top. A refrigerator with a freezer on the top uses 10-25% less energy than a side-by-side or a bottom-mounted freezer.

Power up. Plug appliances and electronics into a power strip rather than an outlet. Devises plugged directly into the wall leak up to 15 watts of electricity even if they are shut off.

Dish it out. Hand-washing dishes might seem better for Mother Earth than using a dishwasher, but it's actually more wasteful. You'll use up to 35% less water by filling up the dishwasher with dishes that aren't pre-rinsed instead of washing by hand. Save even more energy by skipping the dry cycle - just open the door when the cycle is done to air dry.

Just out statistics

2010-07-07T11:51:00.004-05:00

Just out statistic for Omaha - Bellevue Metro area. The number of pendings for June 2009 was 1121. The number of pendings for June 2010 is 674. So the number of transactions is down by 40%.
For Homebuyers this is good news - it means that the sellers are more motivated. And the interest rates are hovering around 4.625% -fabulous. So now is an outstanding time to buy!

My Newest Listing: 1903 Spencer St in Bellevue!

2010-07-06T14:51:00.001-05:00

On the golf course with a wonderful view! Deck and Limestone Patio add to the beauty of the yard. Great room has a wall of windows facing the golf course, fan and fireplace. Beautiful Kitchen plus walkout basement, security & sprinkler systems. Don't miss this!

For more information on this home, click here.

Congress extends deadline for home-buyer tax credit

2010-07-01T10:38:00.001-05:00

Congress extends deadline for home-buyer tax credit. "Congress late Wednesday night extended the deadline by three months of a popular home-buyer tax credit that has helped fuel the real estate market in recent months.

The extension is only for those buyers who signed a purchase contract by April 30 and need extra time to close their deals. The deadline to close was Wednesday and the extension will push that deadline to Sept. 30. The incentive offers up to $8,000 for certain buyers."

My July Newsletter Is Ready

2010-07-01T09:21:00.000-05:00

My July Real Estate Update Newsletter is ready. Please click the picture above or follow this link to read the newsletter. This month's issue includes topics such as:

"How To Make Buyers Want Your Home"
"Debunking Credit Score Myths"
"Choosing The Best Home"
"Home Warranty FAQs"
"Should You Move Up?"

Plus a roundup of June real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

House Passes Extension for first time home Buyers

2010-06-30T10:01:00.002-05:00

Yesterday, the House of Representatives passed the extension for the closing of first time homebuyers contract. Unfortunately, the Senate has not. Unless they pass it today, thousands of first time buyers will miss their opportunity for the credit.

Obama To Announce Housing Plan This Week

2009-02-16T14:08:00.002-06:00

(Wall St Journal) The Obama administration this week will announce a "good, solid" plan with the goal of stemming mortgage foreclosures and putting a floor under falling real estate prices, a senior White House aide said on Sunday.

Speaking on "Fox News Sunday," senior adviser David Axelrod said the plan that President Barack Obama plans to announce on Wednesday will aim to stem foreclosures, provide immediate help to homeowners who are "right on the edge" of foreclosure, and ultimately help in "raising home values that have been plummeting."

David Axelrod speaks on "Meet the Press." Mr. Axelrod pressed the Obama administration's housing plan on the Sunday morning talk shows.

Mr. Obama plans to unveil his housing plan during a visit to Phoenix. As part of his swing through western states, he is set to stop in Denver Tuesday, when he will sign the $787 billion economic-stimulus plan just passed by Congress.

Mr. Axelrod provided few details of the housing plan, but said a government investment of $50 billion to $100 billion to fund foreclosure prevention "is obviously a necessary part." He promised that the plan would contain "a lot of aspects."

In a later appearance on NBC-TV's "Meet the Press," he cited a letter Mr. Obama recently read from an Arizona homeowner as an illustration of the problem. "He showed me a letter the other day that was just heart wrenching from a woman in Arizona whose husband lost his job," Mr. Axelrod said. "He now has a job that's one-third the pay and they're really struggling to make their payments and meet their responsibilities. And she was emblematic of people all over this country."

One likely element of the plan would reduce Americans' payments on troubled mortgages, people familiar with the discussions said late last week, possibly through a cut in the interest rate, the costs of which would be shared by the government and mortgage servicers. Government officials would make the reduction available to people who are at risk of defaulting. A loan-modification program at government-backed Fannie Mae and Freddie Mac currently calls for holding monthly housing-related payments to 38% of pretax income. The new formula is likely to be as low as about 31%, according to some people.

In addition, the administration is expected to endorse a plan to allow judges to modify mortgages during bankruptcy proceedings in some circumstances, a move long opposed by the mortgage industry. And it could push measures that would remove some contractual obstacles that hinder mortgage servicers from modifying troubled loans. Pending any announcement, the country's three largest mortgage lenders are putting a temporary halt on foreclosures.

In his Sunday TV appearances, Mr. Axelrod reiterated the Obama administration's commitment to keeping the U.S. auto industry alive, but underscored that all parties involved in negotiations over restructuring need to be open to making concessions. General Motors Corp. and Chrysler LLC must submit their plans for returning to financial viability on Tuesday, as a condition for having received federal loans.

The companies also are seeking more money to help them get through the current recession. However, GM and the United Auto Workers union have not made much progress so far in their negotiations to reduce the auto makers' labor-related costs.

Mr. Axelrod suggested that investors in the auto makers should also make concessions. "We need a thriving auto industry in this country," he said on Fox, citing the "millions" of jobs that depend on the sector. "We have a vested interest." But he added that "everyone is going to have to continue to work toward a solution. … There is going to have to be a restructuring."

Mr. Axelrod celebrated the stimulus bill's passage, saying it reflected the president's goals and his initial $775 billion target. But he also sought to lower expectations that the stimulus bill would have a big impact immediately, repeating the administration's message that the economy "is likely to get worse before it gets better."

On "Meet the Press," he held out hope that the just-passed legislation ultimately could prevent the unemployment rate from reaching 10%, as some economists expect. "The trajectory is horrible," he said. "This should help put the brakes on that and slow it down."

Mr. Axelrod also defended the administration's plans for shoring up the financial system. Treasury Secretary Timothy Geithner last week unveiled the plan, which provides a fresh round of capital injections for banks, more Federal Reserve lending and the establishment of a public-private venture that would buy troubled assets from banks. But critics and the markets were disappointed in its lack of detail. Mr. Axelrod said Mr. Geithner will be developing specific tactics to implement the plan "in the coming weeks."

"We're going to get this right," Mr. Axelrod said. "We can't gauge our success on one day of fluctuations in the stock market."

In response to a question about a possible government takeover of major U.S. banks, he didn't rule out deeper government intervention. "We will do what we need to do, but our long-term goal is to have a strong private sector banking and financial system," he said on Meet the Press.

On ABC's This Week, Sen. Lindsey Graham (R., S.C.) suggested that nationalization isn't out of the question.

"I think if you put most of our major banks under a stress test" as the administration plans, "they're going to fail," he said. "I would not take off the idea of nationalizing the banks."

But Sen. Charles Schumer (D., N.Y.) said government takeover is not a good idea. "I would not be for nationalizing," he said. "I think government's not good at making these decisions as to who gets loans and how this happens."

As part of the economic-stimulus plan, Congress inserted sharp limits on compensation for executives whose firms receive government bailout funds. Mr. Axelrod said the administration would revisit those limits; other officials have said the administration wants to make the limits less onerous so that banks could retain talented executives.

Mr. Axelrod suggested that the president would soon sign an executive order lifting the ban on federal funding for embryonic stem cell research, which had been imposed by former President George W. Bush.

Senate Proposes $15K Tax Credit For 1st Time Homebuyers

2009-02-05T11:05:00.002-06:00

$15,000 Tax Credit as Part of Senate Approved First Time Home Buyer Stimulus Package

A $15,000 First Time Home Buyer Tax Credit is Part of newly approved Senate Proposal. Read the full article here.

A New Type of Credit Score

2009-02-04T10:51:00.001-06:00

A New Type of Credit Score
What's this new VantageScore credit score I've started to hear a lot about? Will that replace the FICO score?

By Kimberly Lankford

The three credit bureaus -- Experian, Equifax and TransUnion -- introduced the VantageScore last week to compete directly with the FICO score. But it will take a while before the new score takes over the marketplace.

Most lenders continue to use the FICO score -- developed by Fair Isaac -- when setting your interest rates. You actually have three versions of the FICO score, based on your credit report from each of the bureaus. Most mortgage lenders look at all three of your scores and use the middle one. That's why it's important to get a copy of all three of your credit reports to make sure they're accurate, which you can do free every 12 months at AnnualCreditReport.com.

But those credit reports don't include your score -- you'll have to pay extra for that. Plus, most don't provide your FICO score. Instead, they send out their own proprietary scores that are on a different scale. These scores are based on similar criteria to the FICO score and can give you a general idea how your credit history stacks up, but they aren't the same score that most lenders use (although some credit card and auto lenders are starting to use Experian's PLUS score). TransUnion sends its own credit score, called the TrueChoice score. And Equifax is the only credit bureau to provide the FICO score from its Web site. You also can order your FICO score, based on all three reports, from.

Having all of these different scores became confusing, so the three credit bureaus came together recently to offer one score, the VantageScore, which they hope will compete with the FICO score.

The VantageScore is on an easy-to-understand letter grade scale -- with scores ranging from 501 to 990, the higher the better. A score of 901 to 990 equates to a grade of A, 801 to 900 equals a B, and so on down to 501 to 600, which is an F. The score can vary a bit based on each of your credit reports, so it's still important to check out all three reports for errors. But the methodology will be the same across all three credit bureaus.

The new score was just introduced last week, and adoption is gradually moving along. The credit bureaus plan to replace the proprietary scores at their Web sites with the VantageScore over the next few months, but right now they're focusing on marketing the score to lenders. Keep an eye out on the VantageScore Web site over the next few months for more details and an explanation of how the score works and what to do to improve it.

The FICO score continues to dominate the market, though, so it's a good idea to check out MyFico.com to see what you can do to improve your score. Also check out my column archives online, Ask Kim, such as Boost Your Score, for strategies on improving your financial standing.

Home Prices Post 18 Percent Annual Drop

2008-12-30T09:44:00.000-06:00

NEW YORK — A closely watched index shows home prices dropped by the sharpest annual rate on record in October.

The Standard & Poor's/Case-Shiller 20-city housing index released Tuesday fell by a record 18 percent from October last year, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history.

Both indices have recorded year-over-year declines for 22 straight months. Prices are at levels not seen since March 2004.

Prices in the 20-city index have plummeted more than 23.4 percent from their peak in July 2006. The 10-city index has fallen 25 percent since its peak in June 2006.

None of the 20 cities saw annual price gains in October _ for the seventh consecutive month.

Mission Critical: Support for Government-Supported Mortgage Entities, Exec Says

2008-12-05T12:50:00.000-06:00

As homeowners and home buyers struggle through today’s tumultuous housing market, government support for the mortgage market is needed, now more than ever, to take the lead in stabilizing the turbulence of this market.

This is particularly true given the apparent demise of the Government-Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac. Unlike private lenders who have all but abandoned the nation’s housing markets, now and historically, the GSEs have stepped up to become the only reliable source of funding for home loans.

Even with enormous amounts of fresh capital, the surviving private mortgage conduits have totally failed to provide any meaningful flows of jumbo mortgages-the results have been record spreads to the treasury rates and rationed or unavailable loans. Fortunately, despite their financial difficulties and an antagonistic administration, Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) are still providing mortgages and now account for an unprecedented proportion of home loans in today’s market.

Going forward, the role of such government-supported mortgage entities will be critical. If in the past, Fannie and Freddie’s role was muted due to their propensity to help lenders at the expense of borrowers, they still always made a market and acted as a counter-cyclical weight to housing downturns. The successor to today’s GSEs must be successfully positioned to fulfill this role as well.

Some argue that GSEs, or any government support for housing, poses too great a risk to the overall economy. Certainly, the massive leverage of the recent past, when coupled with unsafe instruments and totally insufficient underwriting, cannot be condoned. Yet, it is also clear that the growth in homeownership opportunities for millions of American families were a direct outgrowth of the strength of the GSEs.

The new entities need to avoid the mistakes of the recent past, yet continue to focus on the mission of creating homeownership opportunities, particularly for the underserved and for those aspiring to purchase their first home. Simply put, the successors to Fannie and Freddie need to focus on originating affordable and safe purchase money loans and steer clear of complex exotic capital instruments. Any subprime lending must be accompanied by responsible, realistic underwriting and clear consumer understanding.

The basic question is, where would the economy be if there was an even more restricted supply of capital for today’s housing market? Ask any Realtor or real estate professional and they will tell you that buyers today have a tremendous opportunity to find and purchase the right home, yet their only realistic hope for financing is through a GSE- or an FHA-insured loan.

Without GSEs, today’s housing market woes would be amplified several times over and would stretch into the foreseeable future. The critical issue now is how the GSEs are restructured. Our greatest challenge is to ensure the availability of mortgage capital.

We are optimistic that, with the assistance and support of their new regulator and the U.S. government, a viable successor to Fannie and Freddie will emerge from these trying times stronger than ever.

Mortgage Aid Plan Is Praised

2008-11-12T09:28:00.000-06:00

(Omaha.com) A national plan outlining ways lenders can more swiftly renegotiate delinquent home loans should help stem local foreclosures, said two Omahans who assist struggling homeowners.

Federal officials on Tuesday announced a simpler and quicker procedure for modifying loans held by mortgage giants Fannie Mae and Freddie Mac. The officials expressed hope that it would be adopted by the entire industry.

The plan is to begin by Dec. 15.

"I'm very grateful that they are moving this quickly, because the other stuff that has been available has not reached the majority of borrowers," Julie Kalkowski said.

Kalkowski is managing director of the nonprofit Financial Stability Partnership, an initiative sponsored by United Way of the Midlands and the University of Nebraska at Omaha. She also is co-founder of Go! Hope, the Greater Omaha Home Ownership Preservation Effort.

In recent weeks, major mortgage lenders such as Citigroup, JPMorgan Chase and Bank of America have announced their own plans to address delinquencies. Hope Now, an alliance of mortgage companies, was organized last year by the Bush administration.

But the federal plan announced Tuesday is the most sweeping effort yet to help troubled homeowners.

"I think the thing that is different about this (from previous efforts) is it's a consensus and it's coming down from higher up — it's actually coming down from housing officials," said Don Leu, president and chief executive of Consumer Credit Counseling Service of Nebraska.

Leu said the program will help inject stability into the system and give consumers a plan they can understand. For example, he said, individual lenders handle attempts to work out delinquent loans differently, so agencies such as his don't know what to expect and find inconsistent results.

In some cases, the outcome depends on the person at a lending company who answers the phone, Leu said. He cited a recent example in which someone at a lender's service department provided a payment plan that was impossible for the homeowner to meet. A follow-up call to a different person in a different department yielded a "wonderful" plan that worked for the homeowner, he said.

The federal plan aims to reduce the paperwork and other documentation required to rework mortgage loans, said James B. Lockhart, director of the Federal Housing Finance Agency, which runs Fannie Mae and Freddie Mac since the government took them over in September. To encourage mortgage services to participate, they will receive $800 for each loan that is modified.

The plan targets people who have missed three or more mortgage payments, live in the home and have not filed for bankruptcy protection.

The goal is to make the payments more affordable — defined as no more than 38 percent of a household's monthly gross income — by reducing the interest rate, deferring payments on part of the principal and extending the term of the loan to as long as 40 years.

Struggling homeowners who don't meet the guidelines would be eligible for a special review, although anyone who intentionally defaults on a loan in order to get it modified would be disqualified, officials said.

Fannie and Freddie own or guarantee about half of U.S. home loans.

More than 4 million American homeowners, or 9 percent of borrowers with a mortgage, were either behind on their payments or in foreclosure at the end of June, according to the most recent data from the Mortgage Bankers Association.

Leu said it is difficult to know how many people locally the work-out plans could affect. "Nobody knows for sure — they are hard numbers to get," he said.

Available numbers indicate that Nebraska and Iowa continue to have some of the lowest foreclosure filing numbers nationally.

According to mortgage research company RealtyTrac, Nebraska ranked 50th in the nation in September in the number of foreclosure filings, with 38. That was a 91 percent drop from the same month a year ago. Iowa ranked 42nd with 386 foreclosure filings in September, a nearly 50 percent drop from the same month a year ago.

Nationally, foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 265,968 properties in September, a 12 percent decrease from the previous month but still a 21 percent increase from September 2007, according to RealtyTrac.

"Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed the pace at which lenders are moving forward with foreclosures," James J. Saccacio, chief executive officer of RealtyTrac, said in a press release.

Despite the slower pace, the nation continues to struggle with the worst housing recession in decades.

Kalkowski of the Stability Partnership and Go! Hope said she was relieved that federal officials decided to make the plan effective in December rather than waiting until the new administration is in place in January or later.

"It's better to be pro-active," she said.

Leu agreed.

"I'm happy with the timing of it," he said. "I wished they would have done it even earlier. But when you're working with such a large problem, you have to take it one step at a time."

However, Federal Deposit Insurance Corp. Chairman Sheila Bair said the new plan " falls short of what is needed."

Bair has said the government needs to do more to help tens of thousands of home borrowers avert foreclosure.

Regulators urge banks to fight crisis by lending

2008-11-12T09:24:00.000-06:00

WASHINGTON – (AP) Federal bank regulators, seeking to address criticism about the government's $700 billion bailout plan, have issued new guidance to banks encouraging them to continue lending to credit worthy borrowers.

The guidelines, issued Wednesday by the Federal Reserve and three other federal banking regulators, also encourage institutions to work with mortgage borrowers to avoid defaults. In addition, the guidelines encourage the banks to set dividend payments for shareholders and compensation for executives with the current crisis in mind.

The guidelines seek to address criticism that banks obtaining funds from the $700 billion rescue plan could simply use the money for their own purposes rather than helping struggling homeowners and the overall economy.

Critics are concerned that banks, which are getting $250 billion through government purchases of their stock, are not using the money to boost lending to customers, one of the main reasons why the economy is in a crisis.

"If underwriting standards tighten excessively or banking organizations retreat from making sound credit decisions, the current market conditions may be exacerbated, leading to slower growth and potential damage to the economy," according to the regulators' guidance.

The Fed, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, and Office of Thrift Supervision said all financial institutions were expected to follow the new guidelines, even those not receiving federal assistance.

Citigroup Imposes Moratorium On Foreclosures

2008-11-11T10:31:00.001-06:00

NEW YORK – (AP) Citigroup says it is imposing a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes — making Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.

Citi said late Monday it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.

Citi said it is also working to expand the program to include mortgages the bank services but does not own.

Additionally, over the next six months, Citi plans to reach out to 500,000 homeowners who are not currently behind on their mortgage payments, but who are deemed as potentially needing assistance to keep current with their payments. This represents about one-third of all the mortgages that Citigroup owns, the bank said.

Citi plans to devote a team of 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan, steps known in the mortgage industry as a workout.

Of the four biggest U.S. banks — Citigroup, JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. — Citi has been on the shakiest footing as a result of the mortgage crisis, reporting losses in the past four consecutive quarters while its rivals have managed to post profits. The steps announced Monday are designed to stem those losses.

"Typically the lender loses the most money when a house goes into foreclosure," said Barry Zigas, director of housing policy at the Consumer Federation of America. "(The lender) takes some kind of loss that's usually much greater than what they sacrificed through some kind of workout."

Sanjiv Das, chief executive of CitiMortgage, said, "It is in our interest that borrowers stay in their homes and actually make the payments."

Citi is targeting homeowners in geographic areas with higher-than-average unemployment and foreclosure rates, primarily in Arizona, California, Florida, Michigan, Ohio and Indiana, Das said. The program is expected to affect about $20 billion in mortgages.

"As the unemployment rate is starting to creep up on us, there is going to be increasing distress in the marketplace," Das said in an interview with The Associated Press. "It's not going to distinguish between what type of mortgage they have."

"There is a huge amount of anxiety among borrowers," he said. "We will reach out to them before they become delinquent."

Since early last year, Citigroup has helped about 370,000 families avoid foreclosure, representing more than $35 billion in loans, the bank said.

Citi has avoided negative amortization loans, option adjustable-rate mortgages, and other types of risky mortgages, defaults on which have skyrocketed since the start of the housing bust in the middle of last year. Still, the bank has nonetheless been hurt by the relentless downturn in housing that fed the mortgage and credit crisis, and in turn, the near-breakdown of the financial system.

With defaults mounting, other lenders, including JPMorgan and Bank of America, have also become more aggressive about modifications to mortgage agreements.

But a moratorium only solves so much, according to Zigas. "A moratorium on foreclosure will be effective at stopping foreclosure, it won't be effective at stopping the underlying reasons of why people are in trouble," he said.

By taking a proactive approach, Citigroup isn't waiting until it's too late to deal with delinquent borrowers, said Steve Curnutte, president of InsBank Mortgage in Nashville, Tenn. However, the problem is growing faster than most banks can handle, he said.

"It's nearly an insurmountable undertaking," said Curnutte. "The number of bad loans that they can modify using their resources is being quickly outstripped by the number of new loans that need to be modified."

More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.

Late last month, JPMorgan expanded its workout program to an estimated $70 billion in loans, which could aid as many as 400,000 customers. The New York-based bank has already modified about $40 billion in mortgages, helping 250,000 customers since early 2007.

JPMorgan also said it will not put any loans into foreclosure as it implements the expanded program over the next 90 days.

Bank of America, meanwhile, has said that starting Dec. 1, it will modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement reached with state officials in early October.

The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released.

PRESIDENTIAL CANDIDATES AND THE MORTGAGE CRISIS

2008-10-24T09:24:00.000-05:00

by Julie Jones, Trulia.com

REALTOR magazine recently inquired of Senators Barak Obama and John McCain on their view of the most important action the federal government can take to ease the mortgage crisis and prevent a recurrence.

While both candidates praised President George W. Bush’s Housing and Economic Recovery Act of 2008, their views differ on the government’s approach to the mortgage crisis.

Senator Obama called for the creation of a $10 billion foreclosure prevention fund working in tandem with state, local and community non-profit efforts to either aid homeowners facing foreclosure to renegotiate with lenders, or help homeowners sell their homes. Senator Obama wants to expand the mortgage revenue bond allocating $10 billion in new resources to state housing agencies for struggling homeowners. Long term, Sen. Obama’s Stop Fraud Act creates criminal penalties against mortgage professionals guilty of fraud, and increases funding for state and federal enforcement of anti-fraud programs. And finally, Sen. Obama would like to see a simplified standardized metric for calculating the costs of home mortgages, such as the annual percentage rate used by banks on loans.

Senator McCain intends to boost the economy to help borrowers in economically challenged states by keeping tax rates low and increasing business investment incentives. He also wants to arm households with middle class tax cuts. Next, Sen. McCain wants to help borrowers in fast-growth states forced into risky mortgages to refinance into safe FHA financing through the housing relief bill. He stresses the importance of borrowers, not lenders, to initiate the restructuring process, to keep undeserving lenders from using the FHA to dump all the bad loans they made. Sen. McCain calls for a crack-down on unprofessional conduct among lenders and ensure investors understand the risks of new mortgage securities that the market has developed. And finally, Americans need to give the new national mortgage standards developed by banking regulators a chance to work.

Two very interesting points of view. I hope you find this interview informative.

New Listings This Week

2008-09-18T13:06:00.000-05:00

(2511 Tulip Lane, Bellevue, NE 68147)

This charming 4 bedroom, 4 Bathroom, 2 Story home is located in the Sunrise subdivision in Bellevue. The attractive Kitchen features wood floors, a center island, a desk, and a breakfast bar. The Dining Room features a tray ceiling, crown molding, and a chair rail. The Family Room offers a ceiling fan, tile fireplace with gas log and oak mantel, bookcases and a sliding door to the deck with energy efficient blinds. The large Master Bedroom features a vaulted ceiling, a ceiling fan, a walk-in closet with shelves, and a 3/4 Bath with double sinks, shower, skylite, and a make-up area. Bedroom Two features a walk-in closet. Bedroom Three has blinds and is carpeted. The finished Basement features a Rec Room with bookcases, a storage closet, a 3/4 Bath and a Fourth Bedroom which has a walk-in closet. Outside you’ll find a wood fence, patio, decorative lights, and a 2 car Garage with built-in shelving. The home also features a security system.

Click here for more information or call (402) 496-7499

Home Sales Rise In Feb, But Prices Decline

2008-03-24T12:00:00.000-05:00

Home sales rose, prices fell in February

(AP) After falling for six straight months, sales of existing homes posted an unexpected increase in February which may have reflected more aggressive price cutting by sellers in some parts of the country, a real estate trade group reported.

The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise. They had been expecting a small decline.

The trade group reported that the median existing sales price in February fell to $195,900. That was the largest year-over-year drop on records that go back to 1999.

Lawrence Yun, chief economist for the Realtors, said that prices in some formerly hot markets in California and Florida were seeing significant price declines now as sellers try to attract buyers.

Analysts cautioned against reading too much into the one-month rise in sales. Many economists are predicting that the steep slump in housing will not bottom-out until later this year after prices fall further and allow huge levels of unsold inventories to be reduced.

"We're not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is nother sign that the market is stabilizing," Yun said.

By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent.

Sales of existing homes fell by 12.7 percent in 2007, the biggest decline in 25 years. Over the past two years, housing has been in a steep downturn made worse by a severe credit crunch as financial institutions tightened their lending standards in reaction to their multibillion-dollar losses on mortgages that have gone into default.

The steep slump in housing has raised concerns about a possible recession. Democrats are pushing the Bush administration to do more to stem a tidal wave of mortgage foreclosures to keep more unsold homes from being dumped on an already glutted market.

Sen. Hillary Clinton, campaigning for the Democratic presidential nomination, on Monday called on President Bush to appoint an emergency working group on foreclosures to recommend new ways to confront the housing crisis.

"Over the past week, we've seen unprecedented action to maintain confidence in our credit markets and head off a crisis for Wall Street banks," Clinton said. "It's now time for equally aggressive action to help families avoid foreclosure and keep communities across this country from spiraling into recession."

Six Strategies To Survive The Real Estate Bust (Part Five)

2007-11-14T12:20:00.000-06:00

Strategy 5: Shop for a rate drop

(Fortune) So what happens five years from now when the loan converts from interest only to interest and principal, and the rate faces its first adjustment? Fortune asked Greg McBride of Bankrate.com to calculate various scenarios. Best case: If the rate falls to 4.25 percent, the payment would still rise to $1,896.08 as the principal starts to amortize. If the rate stays at 6.25 percent, the payment rises to $2,308.84. If the rate were to jump to 8.25 percent - which is entirely plausible - the payment would hit $2,759.58.

That's not necessarily the end of it: The borrower could still face further rate increases in subsequent years. "Make sure you can afford the fully amortized payment," says Zelman.

Pat Davis-Lemessy, 44, of Miami Lakes, Fla., knows firsthand how painful these sorts of home loans can be. In 2003, when she purchased her 1,700-square-foot home just minutes away from where she works as a medical plastics engineer for a subsidiary of Johnson & Johnson, she signed up for an interest-only loan with a 3.4 percent teaser for the first four months. At $850 a month, the teaser was easily affordable.

But then her payments started creeping up by almost $200 each month until she found herself paying $1,770 - in interest only! Last year she did the smart thing and refinanced into a 30-year fixed at 5.25 percent. Doing so cost her $5,000 in fees, but she considers that well worth the peace of mind of knowing exactly what she's going to owe each month. "If I'd done a fixed rate when I bought, it would have been 4.65 percent," she says. "The adjustable rate was a mistake. I lost thousands in equity on my home."

With loan volume dropping, banks are willing to negotiate to get your business

When Tom Downie and Rebecca Romajas first laid eyes on their 18th-century Connecticut colonial, they knew they had to have this historical gem. It had rough edges, so soon after purchasing it in 1999, they got to work. Tom, 35, a public relations manager, laid a stone patio. Rebecca, 33, a senior technical director for AT&T, framed the unfinished windows in the sunroom.

Soon they decided to tackle projects that went beyond the do-it-yourself level, so they borrowed $32,000 from a $60,000 line of credit and called in the pros to do something about their Brady Bunch-era kitchen. The terms of the deal: They were required to pay the interest only on a variable monthly rate of prime plus 0.99 percent. Rates were low at the time, but to be safe, they chipped away at the principal. (Tom and Rebecca have always been cautious when it comes to debt. As exotic mortgages were proliferating, they stuck with a 30-year fixed loan, which they refinanced in 2003 to a 15-year fixed.) Four years later the loan amount is down to $23,000.

During that time the Fed raised short-term rates 17 times, and the Downies' monthly interest payments have risen along with those hikes (last month their rate was 9.24 percent). To get the most for their money they've decided to roll their line of credit into a fixed-rate loan. But before accepting their bank's kind offer of 8.5 percent on a five-year fixed, they're shopping around.

Six Strategies To Survive The Real Estate Bust (Part Four)

2007-11-12T14:01:00.000-06:00

Strategy #4: Stay Away From the Exotic Mortgage

(Fortune) Of all the nonsense that the boom has wrought, little has been crazier than the proliferation of adjustable-rate mortgages, or ARMs, often called exotic mortgages because so few people understand them.

A refresher: ARMs offer a low interest rate - a.k.a. teaser - for a certain period of time, after which it varies according to prevailing rates. To complicate matters further, banks also offer interest-only ARMs that allow borrowers to pay just the interest in the beginning and save the principal for later.

The most dangerous type is the "option ARM," which causes a home to amortize negatively. That means the borrower pays just a portion of the interest due; the rest is added to the principal. As long as the home keeps appreciating, the borrower keeps his head above water. If the market stalls, an unprepared homeowner can drown.

ARMs have traditionally been the province of wealthy and sophisticated homebuyers. During the boom, however, banks went after anyone with a wallet. As a result, a lot of homeowners out there are living under a roof they soon won't be able to afford.

Worse than that, these poor saps may have no idea what they're in for: According to a study earlier this year by Fed economists, 41 percent of ARM holders do not know the maximum interest rate they might have to pay. They'll find out soon enough, though, because next year an estimated $1.5 trillion worth of these mortgages are scheduled to reset. (By the way, ARMs make even less sense right now given that introductory rates aren't much lower than fixed rates.)

"There's all kinds of language in these ARMs that allow the rate to rise much faster than interest rates are rising," says financial guru and actor Ben Stein. "They can be treacherous. I had one, and it screwed me over."

Here's an example. Suppose a homebuyer obtains a $350,000 mortgage today using a 5/1 interest-only ARM at 6.25 percent. That means the borrower pays just interest for the first five years at the guaranteed 6.25 percent, after which the principal kicks in and the interest rate becomes adjustable. The beginning payment is $1,822.91 per month.

So what happens five years from now when the loan converts from interest only to interest and principal, and the rate faces its first adjustment? Fortune asked Greg McBride of Bankrate.com to calculate various scenarios. Best case: If the rate falls to 4.25 percent, the payment would still rise to $1,896.08 as the principal starts to amortize. If the rate stays at 6.25 percent, the payment rises to $2,308.84. If the rate were to jump to 8.25 percent - which is entirely plausible - the payment would hit $2,759.58.

That's not necessarily the end of it: The borrower could still face further rate increases in subsequent years. "Make sure you can afford the fully amortized payment," says Zelman.

Pat Davis-Lemessy, 44, of Miami Lakes, Fla., knows firsthand how painful these sorts of home loans can be. In 2003, when she purchased her 1,700-square-foot home just minutes away from where she works as a medical plastics engineer for a subsidiary of Johnson & Johnson, she signed up for an interest-only loan with a 3.4 percent teaser for the first four months. At $850 a month, the teaser was easily affordable.

But then her payments started creeping up by almost $200 each month until she found herself paying $1,770 - in interest only! Last year she did the smart thing and refinanced into a 30-year fixed at 5.25 percent. Doing so cost her $5,000 in fees, but she considers that well worth the peace of mind of knowing exactly what she's going to owe each month. "If I'd done a fixed rate when I bought, it would have been 4.65 percent," she says. "The adjustable rate was a mistake. I lost thousands in equity on my home."

Six Strategies To Survive The Real Estate Bust (Part Three)

2007-11-09T10:13:00.000-06:00

Strategy #3 Consider renting:
If you got out of the market when prices were high, bank those proceeds

(Fortune) Stephen Levy knows how lucky he was to sell when he did. He put his San Diego penthouse on the market in August 2005 for $2.65 million, more than double what he had paid for it in 1998. That October he got an offer for $2.25 million but turned it down. It would be months before he got his next offer. Luckily for him, he was finally able to sell, closing for $2.1 million.

"It was a gift," he says. "Is the property still worth $2.1 million? I'm not so sure about that." Like any precious gift, Levy, who is 58, is holding it dear. So dear that he decided not to roll it into another house right now. He deposited the proceeds into accounts that earn about 4 percent after taxes. The interest just about covers the $3,700-a-month oceanview home he is currently inhabiting. "I've never been a renter in my life," he says. "It's not bad."

Economist John Talbott, author of Sell Now!, applauds the notion of renting in a market like this - even if it isn't part of the classic American dream of owning your own home. "Maybe you don't live to the same standards, but don't worry about it," he says. "If we're talking about the chance to bank $1 million, that's real money."

The economics of renting make sense to Spencer and Jacey Davis, 31 and 29, who are moving to the Boston area - probably for no longer than 18 months - with their three children for Spencer's next assignment with medical technology company Medtronic. They took their sweet time weighing one rental in Concord that they'd been able to talk down to $1,800 a month against another in Andover that was asking $2,000.

Why no rush? "There is no competition," says Jacey. "We were hoping to get a bigger bargain." They did. The Davises are moving to the Andover rental. Monthly payment: $1,850.

Six Strategies To Survive The Real Estate Bust (Part Two)

2007-11-07T09:33:00.000-06:00

Strategy #2 - Drive a Hard Bargain

(Fortune) You'll also need a reality check when it comes to the physical appeal of your home. In the days of bidding wars and waiting lists, buyers were so happy to land a house that they scarcely noticed carpet stains and chipped paint. Today they are picky about the cosmetic stuff. Already Bret and Tricia have laid new carpet, repainted, and replaced the kitchen sink. "We're making lots of trips to Home Depot," says Bret.

That's the spirit all sellers should adopt. "If it takes repaving the driveway or retiling the bathroom to get the house sold, do it," says Zandi. "Don't play a game of hoping the right buyer will come along just in time."

Shim and Neesa Patel were ready to pounce on a brand-new home in San Diego early this year. It was a 4,300-square-foot Spanish colonial coming on the market for $1.2 million. But two months before the house became available, Shim, a 35-year-old engineer for Qualcomm (Neesa is 30), noticed that local home sales had more or less ground to a halt.

"It made me very uneasy," he says. The couple stood pat for nine months - and for about the same price, they're getting a place that's 1,000 square feet bigger.

If you're purchasing from a developer, push especially hard. Unlike individual sellers, who are prone to get emotional and dig in their heels, developers cannot afford to wait. "Builders are doing anything to move their inventory, because it costs money to carry it," says Ivy Zelman, a housing analyst with Credit Suisse. "Free cars. Vacations. No closing costs. You name it. [They're discounting] anywhere from 6 percent to a third off the base price."

Take, for example, Larry and Wanda Grover, 66 and 60, respectively, who bought a 1,700-square-foot house last August in Culpeper, Va. Ryan Homes, the developer, knocked $10,000 off the $319,000 starting price, kicked in $9,000 for closing costs, and agreed to an upgrade of the master bathroom. "Maybe if I'd held out, I could have gotten more," says Wanda.

North of Sacramento, Pulte Homes recently agreed to part with a 2,700-square-foot four-bedroom home for almost 18 percent off the $497,000 list price, plus an additional $8,500 in credits. "I've never seen anything like it," says Lance Pagel, the realtor on the deal. "I recently point-blank asked one developer's agent what incentives she was offering, and she point-blank answered $80,000."

To compete with the big boys, sellers of existing homes are also sweetening the pot. Feel free to ask sellers to cover closing costs or several months of mortgage payments. In order for David Reznikow, 34, to get a buyer to sign on the dotted line for his one-bedroom Boston condo, he agreed to incur moving costs that the buyer would have to pay to get the current tenant out.

Six Strategies To Survive The Real Estate Bust (Part One)

2007-11-05T11:42:00.000-06:00

6 strategies to survive the real estate bust

(Fortune Magazine) Last year the question was whether the housing boom would slow down. Now it's how bad it will get. Fortune's Ellen Florian Kratz helps you navigate the market.

Bret and Tricia Baird are all too aware of what they're getting into.

Friends and family have admonished them to rent when they move this month to Mesa, a suburb of Phoenix, for Bret's new position as product manager with Bard Peripheral Vascular, a medical-device manufacturer. In the past few months the Bairds have been researching local real estate online and haven't liked what they've seen.

With an inventory of more than 38,000 homes for sale, up 94 percent from this time last year, Phoenix is one of the shakiest markets in the country. Nevertheless, Bret and Tricia, both 35, have decided to make a leap of faith. Mesa is Tricia's hometown, and the couple, who have four young children, are planning to live there for a while. So they just put in an offer of $400,000 for a 2,700-square-foot, five-bedroom house right next door to her sister.

The place looks like a pretty good deal - 8 percent off the original asking price of $434,000 and $5,000 less than what the seller paid for it last year. But with the way things are looking in Phoenix, the Bairds realize they could be paying too much. Tricia's sister, for example, bought her house two years ago for $225,000. "We're nervous," says Tricia. "If for some reason we have to sell a couple years from now, we're not confident that we could get what we paid for it."

This time last year the big question was whether the real estate market was going to slow down. Today it's "How bad will it get?"

The numbers tell a confusing story. For existing homes, buyers are trickling back into the market - sales inched upward in October even as the median home price fell by 3.5 percent, the largest year-over-year drop on record. And that comes after price declines in August and September.
'Dead-cat bounce'

On the new-home front, sales in October fell, but the median price crept upward. For homebuilders, cancellations are up and orders down. Last month, the White House revised its GDP forecast downward due to a housing decline that's unfolding faster than expected.

"It's possible that the broader housing market will firm in the next few months, that the worst is over," says Mark Zandi, chief economist at Moody's Economy.com. "But that to me is a dead-cat bounce." In a word, yikes.

So Fortune asked Zandi's group and real estate valuation company Fiserv Lending Solutions to give us their take on what lies ahead for housing in the country's 100 largest metropolitan areas. The picture, as you probably have guessed, isn't pretty. In 2007, 36 of the 100 biggest markets are expected to see price declines. For 2008 that number rises a notch to 37. The area poised for the biggest fall in 2007? Stockton, Calif., where prices are expected to drop by 7.1 percent and another 5.3 percent in 2008.

If you were lucky enough to have bought a couple of years ago, the 23 percent price growth in 2004 and 30 percent in 2005 should cushion any blow. But buyer, beware. If the forecast holds true, a home purchased in Stockton today for $350,000 will be worth a mere $307,917 two years from now. And that doesn't account for the additional toll inflation can take on the true value of your asset. Next in line to take a turn for the worse: Las Vegas, where our forecasters think prices will sink 6.6 percent next year and another 8.1 percent in 2008.

But let's keep all this in perspective. If you're like so many other homeowners, the value of your abode has no doubt appreciated handsomely thanks to the great American real estate bonanza. Sure, you may not be able to cash out for as much as you could have gotten last year, but we're betting you can sell it for a lot more than you would have gotten five years ago.

And remember that your home is your castle, not your 401(k). It's a place to shelter your family and rest your head. So while it's wise to keep the near term in mind when making decisions, long-term perspective is what really counts in the real estate game.

What to do? Whether you're buying, selling, or staying put, we've put together some simple strategies that can make a big difference for you and your home.

Strategy #1 - Lower Your Expectations

In order to seal the deal in Mesa, the Bairds need to sell their home in Plymouth, Minn. Initially their concession to the slowing market was to price their home at $310,000, which is less than the $324,000 asking price for the most recent sale in the neighborhood, even though their house has a slightly better layout and nicer views.

But after noticing 'for sale' signs lingering too long in other people's front yards, they reconsidered. Last month they put their 2,200-square-foot home on the market for $299,900.

"It's a little depressing," says Bret. "But that's what we think the market is willing to pay." Assuming they get full price, they'll be lucky to make a few bucks more than the $279,900 they paid two years ago after commission and closing costs.

But they made the right call. As painful as it might be to realize that your house isn't worth what you thought, asking too much in a slow market is a mistake. "Trying to get last year's price is wishful thinking," says Hessam Nadji, managing director with real estate advisory firm Marcus & Millichap. "Often you're unable to sell your house, which compounds itself, and you keep chasing the market down."

Just ask Rob Sakey, 46, of Northampton, Mass. He and his siblings put their grandparents' Victorian in Cambridge, Mass., on the market for $2.1 million last year, when real estate in the area was starting to slide. After four months they lowered the price to $1.9 million. Then $1.7 million. At $1.5 million, they started getting bites. The house is now in escrow for $1.2 million.

You'll also need a reality check when it comes to the physical appeal of your home. In the days of bidding wars and waiting lists, buyers were so happy to land a house that they scarcely noticed carpet stains and chipped paint. Today they are picky about the cosmetic stuff. Already Bret and Tricia have laid new carpet, repainted, and replaced the kitchen sink. "We're making lots of trips to Home Depot," says Bret.

That's the spirit all sellers should adopt. "If it takes repaving the driveway or retiling the bathroom to get the house sold, do it," says Zandi. "Don't play a game of hoping the right buyer will come along just in time."

Bobbi Featured in Metro Magazine - AGAIN

2007-05-03T12:05:00.000-05:00

Bobbi has once again been featured in Metro Magazine as one of the top Omaha women in real estate. The article is featured in the May 2007 issue. Look for it at your local newsstand.

Bobbi's Son Opens Omaha Nightclub

2007-03-12T15:55:00.000-05:00

Bobbi's son, Marc Leibowitz, has just opened his own nightclub in Omaha. The establishment is called The Waiting Room, and is located at 6212 Maple St in the Benson section of Omaha. The club features live music 3-4 nights per week, a wide variety of beers and liquors, pool and pinball, and a great jukebox. Stop in any time after 4 pm.

Bobbi Leibowitz Named To Prudential Chairman's Circle

2007-03-09T09:45:00.000-06:00

Bobbi and her team were given the Platinum Award for excellence from Prudential nationwide. The 2006 Chairman's Circle - Platinum is awarded to Individual Sales Professionals or Sales Professional Teams that have achieved either $535,000 GCI or 100 Residential Units. This places Bobbi in the top 2% of Sales Professionals/Teams in the Prudential Real Estate network.

Omaha Real Estate Market Reports

2006-12-15T14:00:00.000-06:00

Local Real Estate Appraisal firm Mitchell & Associates has completed a series of reports on the market here in Omaha as of November 2006. Look up the information on your part of town by downloading one of the following pdf reports (must have Adobe Acrobat on your computer)

West Omaha (click here)

Midtown Omaha (click here)

Sarpy County (click here)

NU Volleyball Headed To The Final!!

2006-12-15T12:25:00.000-06:00

(Omaha World Herald) The Husker Nation showed up 17,000 strong.

The Huskers themselves showed up even stronger.

At least that was the case after UCLA won the first game on Thursday night. The Bruins danced with swagger, slid to their knees after every big kill and celebrated their points as if they owned the city.

But No. 1 Nebraska simply refused to let this season end at its home away from home. The Huskers stormed back in front of the biggest crowd ever to watch a college volleyball match and grabbed a 23-30, 30-28, 30-23, 30-28 victory during the most electrifying national semifinal in NCAA tournament history.

Before a record audience of 17,013 at Qwest Center Omaha, the Huskers took care of No. 4 UCLA to advance to the NCAA championship match for the second straight season.(read the rest of the story here)

Bobbi's Team Has Grown

2006-12-01T14:07:00.000-06:00

We have had some new additions to the team in the last few months. First off, Pending Coordinator Susan Peterson's daughter Nicole was married last September in a ceremony in France. She and her husband, Dave, live in Santa Monica, California.

Then, on November 15, Susan welcomed her second grandchild into the world. Jane Elizabeth is the second child of Susan's son Kyle and his wife, Julie.

(Pictured above: Susan, Monnie, Nicole, Dave, Teddy, Julie and Kyle. Janie is pictured seperately)

Bobbi Featured in Metro Magazine

2006-10-06T15:03:00.000-05:00

Bobbi has been featured in this month's Metro Magazine. The issue is the annual Women in Real Estate issue, and is on Omaha area newsstands now. (click the picture to enlarge and read the article)

Parents Replacing Kids' Rooms With Home Offices

2006-08-21T11:46:00.000-05:00

As millions of kids pack up for college this fall, KB Home found in a nationwide survey that 45 percent of adults would opt to convert their child's bedroom into a home office or study, once their child leaves home.

While there was virtually no difference in responses between men and women, those more likely to turn the spare room into an office or study tended to be more affluent (49% of those making over $100,000), have children (54%) and be college graduates (50%) themselves.

Seventeen percent of respondents would convert the child's room into a craft or hobby room, 11% would opt for a home gym and 10% would convert the space into a home theater or media room.

"Many homeowners select homes with flexible floorplans, which enable them to easily convert rooms as family members move out and, very often, back in," said Caroline Shaw, KB Home senior vice president, corporate communications. "This survey indicates that as the nest empties, parents are finding new ways to make their homes work for their changing needs and family dynamics. Many of KB homes are built with that purpose in mind, bedrooms and lofts can easily serve as game rooms and homework centers when children are young and then evolve into home offices, hobby rooms or even home gyms once the kids have left the house."

Among the thousands of design choices available to new homebuyers at the KB Home Studio, are pre-wiring packages which enable the home to keep up with new technologies, from high speed internet connectivity ideal for a home office, to surround sound for the perfect home theater experience.
(source RISMedia)

Home Sales To Hold Steady For Rest of the Year

2006-08-14T14:23:00.000-05:00

The housing market is in a process of stabilizing with little change in overall sales volume expected over the balance of the year, according to the National Association of Realtors(R).

David Lereah, NAR's chief economist, said the indicators already are leveling-off. "We've seen a minor easing in closed transactions of existing-home sales, and a slight increase in the leading indicator of pending sales based on contracts," he said. "New-home sales and housing starts have been fluctuating, so the overall market is stabilizing."

"On one hand is the rise in mortgage interest rates that has slowed sales in many higher-cost markets, and on the other is 3.8 million new jobs over the last two years," Lereah said. "This means many potential home buyers could enter the market in the foreseeable future, especially in moderately priced areas where affordability conditions remain favorable. In fact, this is already occurring."

Although sales will be fairly steady over the balance of the year, declines since last fall mean annual totals will be lower. Existing-home sales are forecast to fall 6.5 percent to 6.61 million this year, the third highest on record after 2005 and 2004. New-home sales are projected to drop 12.8 percent in 2006 to 1.12 million, also the third best on record. Housing starts should be down 9.1 percent to 1.88 million this year.

The 30-year fixed-rate mortgage is running nearly a percentage point higher than a year ago but is likely to rise very slowly in the months ahead, reaching 6.9 percent in the fourth quarter.

NAR President Thomas M. Stevens from Vienna, Va., said current market conditions are favorable for buyers. "The rise in housing supply is the biggest change in the market over the last year," said Stevens, senior vice president of NRT Inc. "Clearly, this has taken pressure off of home prices and has significantly widened choices for buyers. At the same time, sellers are getting excellent returns - but in this competitive environment they need real estate professionals more than any time since the 1990s to market their homes and maximize value."

The national median existing-home price for all housing types is forecast to grow 4.3 percent this year to $229,000, while the median new-home price is expected to rise only 0.5 percent to $242,100 as builders offer incentives to clear unsold inventory.

The unemployment rate should average 4.7 percent for the balance of the year. Inflation, as measured by the Consumer Price Index, is likely to be 3.5 percent for 2006, while growth in the U.S. gross domestic product is projected at 3.5 percent. Inflation-adjusted disposable personal income is expected to grow 3.0 percent this year.

The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
(source: RISMedia)

Parts of West Dodge St Expressway Now Open

2006-07-28T09:57:00.000-05:00

From the highest parts of the West Dodge Expressway, the view is mostly of treetops, rooftops and sky.

West Omahans inclined to get home faster will be able to use the westbound bridge of the West Dodge Expressway when it is opened to traffic after the morning rush hour on Thursday. The bridge is a mile long and at one point has a rise of 20 feet.

And the uphill slope of the expressway bridge seems even steeper, because it's more than three stories off the ground.

Soon, Omaha drivers will get a chance to experience it for themselves.

The westbound bridge is scheduled to open after the morning rush hour Thursday. The deadline for opening the eastbound bridge is Dec. 1, although it could open sooner.

To give motorists a preview, we recently took a cruise on the three-lane westbound span with the Nebraska Department of Roads.

More to do Here is the schedule for the last projects of West Dodge Road and the West Dodge Expressway.

• Aug. 23: Complete intersection of 120th Street and West Dodge Road.

• Dec. 1: Complete and open eastbound expressway bridge.

• By summer 2007: Finish rebuilding westbound West Dodge Road between 112th and 119th Streets. Work is scheduled to start within 30 days after westbound bridge opens.

• By summer 2007: Finish rebuilding eastbound West Dodge Road between 112th and 119th Streets. Work is scheduled to start within 30 days after the eastbound bridge opens.

On our trip in the passenger seat of a Dodge pickup, the bridge was a wide band of concrete stretching nearly 18 football fields long.

The bridge deck hadn't been striped with lane markers yet, so the pavement resembled an airport runway.

Even though it was daytime, the bridge's streetlights were on for testing.

Those were among the few tasks Hawkins Construction Co. had left to do before the bridge opens to thousands of drivers.

Drivers might be surprised at the hill that must be climbed to get to the top of the milelong bridge, which runs above West Dodge Road from just west of Interstate 680 to about 124th Street.

Click to enlarge

The hill rises nearly 20 feet, starting just west of 114th Street.

The hill is steepest in the first block or so. As the bridge crosses 120th Street, it begins going downhill.

The bridge mimics the contours of the road below, but the hill feels steeper on the bridge.

That's probably because drivers are up high - about 40 feet.

Tim Weander, a Roads Department engineer, said the steepness of the hill is within engineering standards for an expressway and will not cause problems for drivers.

He said that after driving the bridges a few times, motorists probably won't even notice the hill.

A concrete barrier 31/2-feet high along the each side of the bridge is intended to keep vehicles from going over the edge.

There also is a 2-foot-wide shoulder on the far left side of the lanes and a 10-foot-wide shoulder on the right so that drivers won't feel hemmed in. The 10-foot shoulder is wide enough so that if a vehicle breaks down, the driver can pull completely out of the way of traffic.

Getting on the expressway bridge from West Dodge Road should feel pretty natural.

Just west of I-680, drivers will have the option of staying on West Dodge or veering to the right to gain access to the bridge. It's a common maneuver for drivers on Interstates.

Those traveling from northbound and southbound I-680 also will be able to drive onto the expressway bridge or West Dodge.

The I-680 drivers currently merge onto a single ramp that takes them to West Dodge. That same ramp also will take them to the bridge.

That ramp is now one lane and is congested during rush hour. The ramp will become three lanes when the westbound bridge opens, which should make traffic on the ramp flow significantly better, the Roads Department says.

(source Omaha.com)

House Passes Bill To Modernize Federal Housing Administration

2006-07-28T09:50:00.000-05:00

The U.S. House of Representatives has passed "The Expanding American Homeownership Act,” which will increase homeownership opportunities for millions of Americans by modernizing the Federal Housing Administration (FHA) and returning it to its traditional role as an important financing option in today’s housing market.

"I applaud the House for passing this far-reaching legislation and express appreciation for the leadership provided by Representatives Bob Ney, Maxine Waters, Gary Miller, and Patrick Tiberi,” said Housing and Urban Development Secretary Alphonso Jackson. "I expect the Senate to take similar action thanks to the efforts of Senator Jim Talent and the support of Senators Mel Martinez, Johnny Isakson, and Saxby Chambliss.”

"When FHA was formed in 1934, it was an historic event that made homeownership possible for people who had nowhere else to turn,” said Assistant Secretary for Housing-Federal Housing Commissioner Brian D. Montgomery. "We are now closer to another landmark - a modernized, flexible FHA that can respond to the needs of today’s low and moderate-income homebuyers who need a helping hand.”

The Expanding American Homeownership Act (H.R. 5121) will enable FHA to reach more prospective borrowers and allow millions more low- and moderate-income families to achieve the American dream of homeownership. Many of these borrowers currently have little choice but to pay subprime rates because FHA lacks the ability to offer an affordable financing option.

FHA was created in 1934 to give homebuyers access to reasonably priced mortgages under fair terms. Over the years, it has been able to help more than 34 million families become homeowners and now it needs to be able to adapt to today’s marketplace. This legislation will bring FHA into the 21st Century and offer hard-working Americans a variety of safe homeownership options at a fair price.

The Expanding American Homeownership Act will:

1) Eliminate the current statutory three percent minimum down payment, reducing a significant barrier to homeownership. FHA’s existing down payment requirement does not meet the demands of today’s marketplace, where most first-time homebuyers put down two percent or less. The "new” FHA would offer a variety of down payment options.

2) Create a new, risk-based insurance premium structure for FHA that would match the premium amount with the credit profile of the borrower. It would replace the current structure, in which there is standard premium amount for all borrowers, while still protecting the soundness of its Insurance Fund. FHA would have the flexibility to charge a lower premium for low-risk borrowers, and to charge higher-risk borrowers a slightly higher premium.

3) Increase and simplify FHA’s loan limits. FHA’s loan limit in high-cost areas would rise from 87 to 100 percent of the GSE conforming loan limit and in lower-cost areas from 48 to 65 percent of the conforming loan limit. This change is crucial in today’s housing market. In many areas of the country, the existing FHA limits are lower than the cost of new construction, eliminating FHA financing as an option for buyers of new homes in those markets. FHA has simply been priced out of the market in other areas, such as California, where FHA insured only about 5,000 home mortgages in all of 2005, down 95 percent from 109,000 in 2000.
(source RIS Media)

Tips To Flip

2006-07-27T12:47:00.000-05:00

The real estate “flipper” market may be stalling or dwindling in today’s economy, but some investors still want to give it a go. Pam O’Connor, CEO and president of Leading Real Estate Companies of the World, formerly RELO, offers these quick tips on how to make the most of “flipping” in today’s market.

Hold onto the property longer:

Fix it up: The better it looks, the better the resale value.

Know your market: Research the city, neighborhood, etc. where you plan to make the investment purchase to see if the area is on the upswing.

Consider the area job market.

Profile buyers.

Enlist the help of agents.

Pay attention to neighborhood (a worse house in a good neighborhood is better than the best house in a bad neighborhood.)

Pay attention to appreciation.

(source RIS Media)

Officially a 'Buyer's Market'

2006-07-26T16:03:00.000-05:00

(source: RIS Media) Existing-home sales were down modestly in June, and home prices were up slightly from a year ago, according to the National Association of Realtors®.

Total existing-home sales including single-family, townhomes, condominiums and co-ops – declined 1.3 percent to a seasonally adjusted annual rate1 of 6.62 million units in June from an upwardly revised level of 6.71 million May. Last month’s sales were 8.9 percent below the 7.27 million-unit pace in June 2005.

David Lereah, NAR’s chief economist, said the housing market is flattening-out. “Over the last three months home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing,” he said. “At the same time, sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories. Home prices are only a little higher than a year ago.”

The national median existing-home price2 for all housing types was $231,000 in June, up 0.9 percent from June 2005 when the median was $229,000. The median is a typical market price where half of the homes sold for more and half sold for less.

“The change in price performance is directly tied to housing inventories – a year ago we had a lean supply of homes and a sellers’ market, with monthly home sales at an all-time record high,” Lereah said.

Total housing inventory levels rose 3.8 percent at the end of June to 3.73 million existing homes available for sale, which represents a 6.8-month supply at the current sales pace. By contrast, in June 2005, there was a tight 4.4-month supply on the market.

NAR President Thomas M. Stevens from Vienna, Va., said opportunities have opened for home buyers. “People who were discouraged by the bidding wars that were so common over the last few years are finding more choices now,” said Stevens, senior vice president of NRT Inc. “Relative to the five-year housing boom, this year is a buyer’s market in much of the country with plentiful supply, along with interest rates which remain historically favorable, so it’s a good time to buy a home.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.68 percent in June, up from 6.60 percent in May; the rate was 5.58 percent in June 2005.

Single-family home sales eased 0.9 percent to a seasonally adjusted annual rate of 5.81 million in June from an upwardly revised 5.86 million in May, and were 8.2 percent below the 6.33 million-unit pace in June 2005. The median existing single-family home price was $231,500 in June, up 1.1 percent from a year ago.

Existing condominium and cooperative housing sales fell 5.5 percent to a seasonally adjusted annual rate of 805,000 units in June from a pace of 852,000 in May, and were 14.6 percent below the 943,000-unit level in June 2005. The median existing condo price3 was $226,900 in June, down 2.1 percent from a year earlier.

Regionally, existing-home sales in the Midwest were unchanged in June, holding at a level of 1.52 million, and were 6.2 percent lower than a year ago. The median price in the Midwest was $175,000, which is 1.7 percent below June 2005.

Existing-home sales in the West also were unchanged, at an annual pace of 1.41 million in June, and were 17.1 percent lower than June 2005. The median price in the West was $342,000, the same as a year ago.

Existing-home sales in the South eased 2.3 percent to a pace of 2.57 million in June, and were 5.5 percent below June 2005. The median existing-home price in the South was $191,000, down 0.5 percent from a year earlier.

Existing-home sales in the Northeast declined 3.5 percent to an annual sales rate of 1.11 million units in June, and were 9.8 percent below a year ago.

The median price in the Northeast was $298,000, up 7.2 percent from June 2005.

Buffett: Real estate slowdown ahead

2006-07-26T12:54:00.000-05:00

The Oracle of Omaha expects the housing market to see "significant downward adjustments," and warns on mortgage financing.

by Jason Zweig
At this weekend's annual meeting of Warren Buffett's Berkshire Hathaway, security is tighter than usual, with several entrances to the parking lot of the Qwest convention center closed.

This may have something to do with Buffett's announcement yesterday of his purchase of an 80% stake in Iscar, an Israeli-based metal cutting tools firm, for $4 billion. In one fell swoop, that makes him one of the biggest foreign investors in Israel. With that news, a little extra security amidst the sea of the roughly 20,000 shareholders and acolytes in attendance can't hurt.

Regardless, Buffett and Berkshire Hathaway (Research) vice chairman Charles Munger threw Saturday's entire morning open to a question and answer session with shareholders just as they do every year. With no major scandal or news event in the foreground, Buffett and Munger struck a more reserved tone than they have at past meetings.

But their views on housing prices and the energy and commodity markets may ruffle some feathers. Buffett played his usual role of the talkative, cheery extrovert, speaking in perfect paragraphs, while Munger took the role of the laconic, crotchety critic whose favorite sentence is "I have nothing further to add."

These are not just their stage personas, but how they normally think and speak. What follows is an edited and approximate transcript of their remarks.

On the real estate bubble
Buffett: "What we see in our residential brokerage business [HomeServices of America, the nation's second-largest realtor] is a slowdown everyplace, most dramatically in the formerly hottest markets. [Buffett singled out Dade and Broward counties in Florida as an area that has experienced a rise in unsold inventory and a stagnation in price.] The day traders of the Internet moved into trading condos, and that kind a speculation can produce a market that can move in a big way. You can get real discontinuities. We've had a real bubble to some degree. I would be surprised if there aren't some significant downward adjustments, especially in the higher end of the housing market."

On mortgage financing
Munger: "There is a lot of ridiculous credit being extended in the U.S. housing sector."

Buffett: "Dumb lending always has its consequences. It's like a disease that doesn't manifest itself for a few weeks, like an epidemic that doesn't show up until it's too late to stop it Any developer will build anything he can borrow against. If you look at the 10Ks that are getting filed [by banks] and compare them just against last year's 10Ks, and look at their balances of 'interest accrued but not paid,' you'll see some very interesting statistics [implying that many homeowners are no longer able to service their current debt]."

On a commodities bubble
Buffett: "I don't think there's a bubble in agricultural commodities like wheat, corn and soybeans. But in metals and oil there's been a terrific [price] move. It's like most trends: At the beginning, it's driven by fundamentals, then speculation takes over. As the old saying goes, what the wise man does in the beginning, fools do in the end. With any asset class that has a big move, first the fundamentals attract speculation, then the speculation becomes dominant.

Once a price history develops, and people hear that their neighbor made a lot of money on something, that impulse takes over, and we're seeing that in commodities and housing...Orgies tend to be wildest toward the end. It's like being Cinderella at the ball. You know that at midnight everything's going to turn back to pumpkins & mice. But you look around and say, 'one more dance,' and so does everyone else. The party does get to be more fun -- and besides, there are no clocks on the wall. And then suddenly the clock strikes 12, and everything turns back to pumpkins and mice."

On ethanol
Buffett: "Charlie [Munger] and I do not know enough about the business to evaluate it. It depends on government policy and a lot of other variables we're not good at predicting. It's also a very hot area for investors right now, and we don't like looking at things that are hot and easy to raise money for. Generally speaking, agricultural processing businesses have not earned high returns on tangible capital. Ethanol could prove an exception, but I'm not sure how you gain a competitive advantage with any particular ethanol plant."
(source Money Magazine)