Summers Predicts Job Growth by Spring

“Most professional forecasters are looking for a return to job growth by the spring,” he said in an appearance on “ABC’s “This Week with George Stephanopoulos.”
Mr. Summers, director of the White House’s National Economic Council, made his forecast one day before President Obama is scheduled to meet with banking executives at the White House in an effort to ratchet up lending to consumers and small businesses, to make it easier for homeowners to obtain mortgages and spur businesses to generate jobs.
Mr. Summers, Secretary of the Treasury at the end of President Clinton’s administration, said that “it doesn’t cost anything to encourage banks to expand the flow of credit to small businesses.” He said the president will remind them that given what the federal government did to bail out banks when they were in trouble, they have an obligation “to enhance lending across the country.”
“We were there for them and the banks need to do everything they can” to be sure they help American business and generate jobs, he said.
The nation’s unemployment rate stabilized in November, with only 11,000 more people losing jobs and the rate itself edging down to 10.0 percent from its yearlong peak the previous month. The ranks of the employed stood at 138.5 million in November and the number of unemployed still seeking jobs stood at 15.4 million. When the recession began in December 2007, 7.5 million Americans were unemployed and the jobless rate stood at 4.9 percent.
Mr. Summers said flatly that “everyone agrees the recession is over.” But at least one dissenter was Senator Mitch McConnell of Kentucky, the Republican minority leader, who said on CBS’s “Face the Nation” that, given a 10 percent national unemployment rate and 11 percent in Kentucky, “I don’t think it’s over.”
“I hope he’s right that we’re coming out of an economic slowdown, but unemployment is the key,” he added.
Mr. Summers, though, sounded a more upbeat tone.
“We were losing 700,000 jobs a month when President Bush turned the economy over to President Obama,” he said. But looking at the latest employment statistics, he said, by spring, “growth will be starting to turn positive.”
Asked what the Obama administration would be doing to create jobs, Mr. Summers said, “Every bill is going to be a jobs bill.” The president plans to spend $50 billion on repairing the nation’s infrastructure, and health care reform — the centerpiece of the Obama domestic agenda — too would help he economy by paring away the nation’s deficit, which he described as an $8 trillion shortfall over 10 years that “the Obama administration inherited.”
By JOSEPH BERGER
Published: December 13, 2009 , New York Times

IRS Sets New Rules for Tax Credit

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

• When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.
• The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.
• When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)

Banks Start to Embrace Short Sales

Banks Start to Embrace Short Sales Even before the government put pressure on them to embrace short sales, more banks were starting to take their lumps, do the short-sale deals and move on.Three years into the housing meltdown, short sales have tripled to 40,000 in the first six months of 2009, compared to the same time period a year ago, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.
Wells Fargo, Bank of America Corp., and JPMorgan Chase & Co. this year have hired and trained more staff to handle short sales and also developed software for expediting them. “It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. “I think banks were in denial.”
Source: Bloomberg, John Gittelsohn and Margaret Collins (12/4/2009)

Why to use a Realtor

Reasons why it pays to work with a REALTOR®. National Association of Realtors(member)

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.
Source:realtor.org

How to Prepare to own a home

How to Prepare for Homeownership

• 1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
• 2. Develop your home wish list. Then, prioritize the features on your list.
• 3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
• 4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
• 5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
• 6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
• 7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
  8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
  9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
• 10.Contact a REALTOR®. who can help guide you through the process.

Homebuyer Tax Credit Extended

Homebuyer Tax Credit Extended
First Time Homebuyers

• The guidelines stay pretty much the same. The maximum tax credit remains $8,000($4,000 for married filling separately) and anyone who has NOT owned a house during the last three years.
  
• Purchase a home by April 30, 2010
  
• Contract must close by June 30, 2010
  
• After Dec.1,2009,income limits rise to $125,000 for singles, $225,000 for married couples,currently $75,000 and $150,000 respectively. The tax credit phases out incrementally at each $20,000 increase in income.
  
• Maximum purchase price $800,000
  

Move-up Buyers(existing homeowner)

• May claim a tax credit up to $6,500
  
• The owner must have owned and used the same residence as primary for 5 conssecutive years in the previous 8 years.
  
• This is effective immediately.
  
• Income limits are the same as First Time buyers
  
• Buyers who are currently under contract, and may have passed otherwise the Nov 30th dealine, can now use the new guidelines.

Fannie Mae goes Spanish

Fannie Mae 'En Espanol' Fannie Mae is launching a Spanish version of its Homepath.com Web site, designed to help potential home owners purchase Fannie Mae-owned properties.Through HomePath.com potential home owners can access a database that lists properties for sale around the country, including the territory of Puerto Rico.To access the site from the English language version, click on "En Espanol” in the upper right-hand corner.Source: Fannie Mae (11/19/2009)

Housing at Its Most Affordable in Years

One piece of good news coming out of the Great Recession is the increasing affordability of housing

Housing at Its Most Affordable in Years One piece of good news coming out of the Great Recession is the increasing affordability of housing.The typical U.S. family earning the nation’s median income of $64,000 a year could afford to buy 70.1 percent of all homes sold in the United States during the third quarter, according to a report from the National Association of Home Builders and Wells Fargo. The report relied on the government standard of spending no more than 28 percent on housing. In the same quarter of 2008, only 56.1 percent qualified.

The five most affordable areas are:
Indianapolis
Youngstown, Ohio
Detroit
Warren, Mich.
Grand Rapids, Mich.

The five least-affordable areas are:
New York City
San Francisco
Honolulu
Santa Ana, Calif.
Nassau and Suffolk, Long Island, N.Y.
Source: CNNMoney.com, Les Christie (11/19/2009)

Lowest Gas Prices at the beach

If you are looking to save a buck in gas in this economy, some good places to go at the beach are:
Hess Express
13637 Beach Blvd. $2.57
BP Kwik Trip
14070 Beach Blvd. $2.57
Shell
4755 Hodges Blvd. $2.57
Kangaroo
13697 Beach Blvd. $2.57

Good luck, if you need to find one close to your area you can also go to http://gaspricewath.com