Debt Forgiveness Law Gets Signed!

Right before congress and the president closed shop for the season a very important piece of legislation got signed. The Mortgage Forgiveness Debt Relief Act has been signed into law!! I am inserting the artice from N.A.R. (National Association of Realtors) exactly as I received it:

Statement on President Bush's Signing of Mortgage Forgiveness Debt Relief By NAR President Richard F. Gaylord

WASHINGTON, December 20, 2007 -

“On behalf of the many individuals and families who would have been burdened by a tax after losing their home, the National Association of Realtors® thanks President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. Today the president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.
“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.
“Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.” The National Association of Realtors®, “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.

This is GREAT NEWS for all people affected by this housing correction.

If you find yourself in a situation requiring Financial Intervention and assistance in your home sale, please contact me as I am a trained, skilled Loss Mitigation Negotiator with a full team of professionals to assist you.

Contact

Bobbie Files
www.BerkleyMass.com

bobbiefiles@kw.com

508-238-5000 x.296 Office

What is a short sale and will it help me?

By now we've all heard that defaults on mortgage loans are on the rise, with some industry experts predicting record numbers of foreclosures this year. Whether this will have a dramatic impact here in the Berkley Area is really anybody's guess, but it is a possibility, which leads to my topic today.

What is a "short sale?"

If you've never heard of a short sale, you're in good company. Many (if not the majority) of home owners have never even heard of a short sale. The reasons for this are many, including the rarity of their occurrences. While a short sale is certainly not the answer for many homeowners struggling to keep up with mortgage payments, for others it may be a way to avoid having a foreclosure on that ever important credit report.
Here's how a short sale may come about:
Typically after a homeowner has defaulted (missed) anywhere from one to a couple of mortgage payments, your mortgage lender will send you a "notice of default." In the real estate and mortgage industry this is commonly referred to as an "NOD." NODs are likely to occur in greater numbers in slower or decreasing housing markets.
The NOD essentially states that the homeowner has 90 days to become current on payments due the lender, or else the bank will foreclose on your home. However, as banks are in the business of selling loans, not properties, they prefer not to foreclose on homes. That is not to say that they won't, but it is generally their last resort. For this reason, occasionally banks will approve a "short sale." But, keep in mind, it won't necessarily be easy to negotiate this with your lender.

Suppose you bought a home for $400,000, and opted for a 100% financing loan (which is not uncommon particularly in the last few years.) Everything was going smoothly, until an unforeseen hardship made it impossible for you to make your monthly payments. At this stage you will likely consider selling your home. But, when you go to do so, you find that your house has actually depreciated in value, and it will now only command $325,000 as determined by current market value. In order for you to avoid foreclosing, you would have to sell the home, not to mention come up with $75,000, plus closing costs, commissions and any past due amounts.
Should you determine that coming up with that money is simply impossible; you may opt to seek out a REALTOR® who has expertise in these situations, to try to negotiate a short sale on your behalf with your lender.

Here's how a short sale works.

After you receive your NOD from the lender, first contact a REALTOR® familiar with short sales (also known as short pays). It is urgent that you do this immediately, as you and your REALTOR® have only 90 days to achieve all of the following:
*List and market the property. It will be listed for sale just as any other property would, on the MLS System. It will be marketed as a short sale.
*Receive and accept an offer
*Submit the offer along with an explanation of why you can no longer afford to keep the home (sometimes called a "hardship letter.") to the lender.
*Negotiate with the lender for forgiveness of the remainder of the loan.

Negotiating for Forgiveness

If you did a double take on the last bullet, it's not the least bit surprising. A short sale in its most basic form is the lender forgiving you for figuratively costing them -in the above example- $75,000. They will usually agree to pay the closing costs and commissions for you.
Why would they do such a thing? Frankly, it's because it's easier for them to cut their losses, and at least recoup some of the money for the house, than it is for them to foreclose and sell the home at an auction. But note the following:
*Negotiation between your REALTOR® and lender is not easy, even with a compelling "hardship letter"
*Lenders will not be willing to negotiate at all, unless your REALTOR® provides them with an offer in writing from a buyer
*Lenders are not always expedient with their response to your request, pushing your 90 day deadline to the limit
*Lenders reserve the right to forgive some of the debt, but not all, leaving you to come up with any balance
*You may be subject to taxes on the amount of the loan forgiven. In the above example therefore, you may receive a 1099 statement from the lender for the total amount of debt forgiven. This would include the $75,000, the closing costs, the commissions plus any amounts past due. A 1099 in this instance could potentially put you at risk for owing taxes on an additional $98,000 in taxable income.

So Where Is The Good News?

The sole reason to seek a short sale would be to avoid having a foreclosure on your record. In the eyes of most lenders a foreclosure on your record is reason enough to deny you a loan for another house, even years in the future. At the very least, a foreclosure on your credit would likely relegate you to the "sub prime" category of borrowers, which is the segment of the market currently experiencing tightening guidelines and increasing restrictions. In lieu of having a foreclosure on your credit, you will be marked with the short sale, but it will not affect your credit as negatively as a foreclosure would.
Please note that without the guidance of a REALTOR® trained in negotiating with lenders on your behalf for a short sale, the odds that you will be granted a short pay from a lender on your own are pretty slim. These short sales are not particularly common, and are only granted after much effort on your behalf by your REALTOR®.
However, should you find yourself facing hardship, and a potential inability to pay your mortgage loan, consult a REALTOR® immediately to see if any other options are available.

Contact

Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com

When are home prices going to rise

Please read the article below that I copied in full.

Everyday I get asked by sellers and homeowners "When are we going to be out of this?" Well if we use the information below as a guide by 2009 home prices will be finally steady.

The next most common question I here from Sellers is "The spring market is the best market should I wait till then to sell?" The answer to that would be a big "NO!!" If you wait until Spring you could lose an additional 2% more than now!

Than I hear "If I wait to sell a couple of years the market will be back." In a couple of years the market will no longer be declining and finally staying steady. If we go by the opinion below your home will be worth a full 4% less in a couple of years than it is today. And that is not taking into consideration depreciation based on condition. Roofs, furnaces, windows have all aged in that time and maybe getting to the point of replacement. 2-3 years can be the difference between having to replace a roof or selling it the way it is.

We are in a market of "Equity Preservation". By that I mean when you price your home you want to underprice your competition AND price your home lower than recent sales.

"WHAT?!?!" you're now screaming.

Let me explain.

We are currently losing value of 0.5 to 1% per month. A recent sale is one that has closed in the last 3 months, better yet the last month. Like I just said it is a sale that has CLOSED. Well that means that the offer to purchase was made 1-2 months prior to the closing. So if we take a sale that closed 1 month ago on an offer that was accepted 2 months prior that is a 3 month period of further depreciation. At 1% per month that is a full 3% of loss. If you price your home at or above the Sale price of that recent sale and your home sits on the market for over 30 days your home has now lost 4% in value.

A well priced home will sell and will sell quickly.

That is Equity Preservation.

Bankers: Worst is yet to come ( BOSTON ) – The chief economist for the Mortgage Bankers Association is advising members not to expect a recovery in the housing markets until 2009. The MBA’s Doug Duncan says he expects national median home prices to fall between 2 percent and 4 percent next year because of an oversupply of homes from foreclosures. Duncan said California , Texas , Arizona and Nevada would be the hardest-hit states because of speculation by investors, while Ohio , Michigan and Illinois would follow because of job losses. He said he expects mortgage originations to be off 15 percent this year and another 18 percent next year. Reprint from U.S. News.

I can help you with every aspect of buying or selling your home because I’m experienced, because I’m professional . . .and because I care. The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration. I'd love to hear from you!

To get a fair Market Value of your home call Bobbie Files.

Bobbie Files

Your Bristol County Realtor
508-238-5000 x.296 Office
508-789-0217 Direct

bobbiefiles@kw.com

Visit my website at www.berkleymass.com for accurate real estate information.

Are you waiting to buy?

You first time homebuyers or present time renters... Are you ready to start your exciting but 'scary' property search? Homebuying is a big step...but it shouldn't be frightening...learn to enjoy the process...see it as a 'journey' from rent receipts to 'buying bricks'!

Remember they taught us in school the three major components essential to every family...food, shelter, and clothing...'homebuying' is the biggest ticket item in that picture.

Another thing, is the present market worrying you or causing you to have second thoughts as to whether you should buy now or delay your purchase until better market conditions return?

Let me give you some ideas to consider...

*If your job is relatively stable, and your finances are under control, and you plan on staying in your home for at least 4 or 5 years, then consider purchasing now...interest rates are extremely good...they may not be when the market turns...also if you're waiting for property values to 'bottom out', an increase in interest rates could negate any savings in purchase price...today's sluggish 'buyers market' provides opportunities to capture some additional funds for closing from anxious sellers...and there is plenty of inventory to select from...in other words, let the market 'work for you'!
*Are you ready to buy but lack confidence in our economy...are you leary to 'commit' to a large purchase such as a home? Maybe you can consider looking at properties less expensive than you originally intended...something less expensive to maintain...perhaps not quite so large...something smaller but more energy efficient...instead of that 2,500 square feet 2 story colonial, maybe a 1,600 sq. ft. 'cape cod'! Remember to factor in taxes and insurance. Some homes that appear similar can be more affordable...crunch those numbers...get good at it.
*If you're in a 'moving up' category, the status of the economy is of negligible consequence...what you lose, if anything on your sale, you should be able to make up on your purchase...in fact your purchase can achieve a greater savings than what you may have lost on your sale! Am I getting you confused? Reread it until you get it!

If you're still confused this is where a true real estate professional comes in!
I always advocate for the use of experienced real estate professionals which make the homebuying process a pleasure. Without going into detail, remember the agent that is showing you homes and explaining the financial aspects to you will be paid from the seller's proceeds...in essence you have a true real estate professional 'working to find you a home' at no cost to you! It is bewildering to me why many potential homebuyers take it upon themselves to accomplish this task on their own! You wouldn't pay for a flu shot if you could get one next door at no charge.


How do you find a 'true real estate professional'? It's not as difficult as you may think, call Bobbie Files. I will provide you accurate, reliable service. Putting your needs FIRST.

Bobbie Files

Realtor of Choice

Start your search at http://www.berkleymass.com/

Are we getting a local train station??

Recently officials for Transportation and Southeastern Regional Planning & Economic Development District members met with the City of Taunton to discuss the options for the new South Coast Rail project.

The South Coast Rail project will connect Boston with Taunton, New Bedford and Fall River. They are weighing the 3 options available: connecting from Stoughton; relocating the Lakeville Station to Middleboro; or going through Attleboro. The Attleboro option being the least desirable to Taunton because of the number of streets that will be affected.

Regardless of how it gets here it looks like a commuter rail is coming.....not for another 10 years or so but it is going to get here.

I am curious. What is your opinion? Are you in favor of the commuter rail? Do you feel it will improve property values?

Let me know what you think.

Bobbie Files
Your Bristol County Realtor
bobbiefiles@kw.com

Just really how wide spread is the subprime market disaster???

WSJ - Subprime mortgage have been cropping up in surprising spots. Typically, these loans to home buyers with the weakest credit were concentrated in lower-income or economically depressed areas.


But over the past few years, a large chunk of the subprime-loan market has shifted to higher-income metropolitan areas. In many of those wealthier areas, the delinquency rate has increased quickly. In the Sacramento, Calif., region, where the median household income ranks among the top 10th of major metropolitan areas, the portion of subprime mortgages delinquent for 60 days or more hit 14.1% in December -- more than four times the level a year earlier. Other parts of California, as well as sections of Florida and Massachusetts -- especially those areas where housing prices have surged -- also logged rapid increases in delinquencies.

Think Short Sale NOT Foreclosure!

As everyone knows, the real estate and mortgage industry has been in trouble over the past few years. Thousands of families find themselves in financial trouble due to drastic rate increases in adjustable rate or interest only mortgages coupled with home prices that have been steadily declining. Most people failed to consider the possibility of the huge increases upon entering the agreements. Only now, they find themselves with mortgage payments that they cannot afford to pay. Often, foreclosure is seen as the only option available to these struggling families. However, there is one important aspect of a foreclosure that people forget – the resulting tax liability.

Foreclosure is always the last resort for someone struggling to make mortgage payments. People usually think it will be the end of their problems. However, the IRS considers debt canceled through foreclosure to be part of a taxpayer’s income. The IRS feels that it is entitled to the appropriate income taxes on that money. It also has access to every taxpayer’s financial information so it can ensure the appropriate taxes are paid. And as most of the country already knows, the IRS is very aggressive in collecting taxes that they know are outstanding and feel they deserve.

A short sale is a FAR MORE viable and FAR LESS destructive solution.

What is a short sale? A short sale is a method in which a bank accepts less than what is currently due on the mortgage as payment in full. With the market in the situation that it is in banks are becoming more and more receptive to this process. It can create a WIN/WIN for both the bank and the homeowner. Yes, there are tax implications with the IRS on the "forgiven or excused" money. This phantom money will get reported by a 1099 to the IRS for you to claim on your taxes in which you would want to seek a qualified and reputable tax professional to assist you with. However, this is far less money to have to claim than the entire mortgage balance!!

Foreclosure is the absolute LAST result that you should be willing to accept. I understand that it is very hard to face this, I know that it seems easier to hide and not answer the phone or open the letters. BUT the more time that goes by the fewer options you will have. There is a very limited window of opportunity to have a short sale. If you find yourself in this situation contact a Realtor to have them assist you!! Let them try to remove this burden off of your back.

I service the Taunton, Berkley, Freetown, Lakeville, Middleboro areas.

Please contact me if you need assistance.

www.berkleymass.com

To Buy or to Wait ~ That is the question

Everytime the tv or the radio goes on we are overwhelmed with different newscasters and financial gurus giving their opinions and market predictions. Has doomsday happened or is it yet to come? Has the sky fallen or are we still waiting for it to fall? And that oh so lovely bubble....has it burst yet???

I just want to scream!!!

What happened to buying a home that you love JUST BECAUSE YOU LOVE THE HOME?!?! I really can't remember when the change happened. Did it happen when I was sleeping? Did someone flick the switch on the lightbulb? Or did a neon sign light up that said "A home is an overgrown stock ....buy, buy, buy and flip, flip, flip!!!"

Where did "buy and stay" go?

If people looked at a home as a long term "investment" than the question "Is it going to go down more in value next year?" wouldn't be applicable. I know it isn't real life anymore to stay in your home for 30 or so years like our parents did (at least mine did and I am almost, but NOT QUITE, 40 yrs old). I can guarantee you my parents didn't buy their home wondering and worrying what it was going to be worth in 2 months or 2 years. It was a place to raise their family. They scrimped and struggled to make that payment every month, and believe me we did without. But it IS real to buy with the foresight of staying for 7 years or so. And if a home is purchased with that type of range in mind a value loss is no longer a concern. Yes, prices have corrected and yes there could be some more correction to come but then the ball starts slowly rolling the other way. First the ball stops rolling, than it takes a slow but not complete roll the other way, than it starts to creep some more, than it makes one complete roll and than it rolls again and again and again. Before too long prices start rising!!!

Don't think of your house primarily as an investment. Think of it as your home. Find a neighborhood that fits, a house you love, and a fixed-rate mortgage you can afford -- and forget about trying to game the market. If you're happy where you are, you are far more likely to stay there awhile -- which is, of course, the best way to maximize your investment.

Visit Southeastern Massachusetts most informative website.

Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com

OPEN HOUSE - Taunton Sun. 10/21

OPEN HOUSE

Sunday 10/21
11:00 ~ 12:30

243 Myricks Street
East Taunton


Come by and take a peek at this fully renovated home. The owners have replaced almost everything - windows, kitchen, both bathrooms, back deck, septic system, and even finished the basement! This is basically a brand new home. A great start for the first time buyer or someone looking to downsize.

Central AC ....Is it a MUST HAVE?

In my September's electric bill there was the usual newsletter from the electric company. Quite frankly I never read these things, but for some reason I picked this one up.
In it was a chart that had certain appliances and how much energy they use. Well the shocker to me is that I thought and have said that central ac is cheaper to run than window ac's, well according to their chart central ac is about equivalent to 5 window ac's. Now I have a home that in our area is considered nice sized, not huge but not small either, and I do not have central ac which was something that was on the future must haves, well I also so not use 5 window ac's. We typically have one large one on the 1st floor that is set for energy save running during the day, and then I have 2 upstairs that get set for 68 degrees and run based on temp. According to my electric company 5 window ac's running for 165 hours per month costs $80.19 the central ac costs $87.41.
That shocked me! I really always thought that the central ac was a cheaper alternative to the window ac's. I know there is a cosmetic improvement when you get rid of those things, but it seems like that is the only improvement. For approx. $12,000 I can have the central ac installed in both floors, and I wanted to do it for the savings AND for the aesthetic appearance. But now I wonder for just 2-3 months of ugly ac's is it worth the expense.

Does central ac make a break your decision to buy?
Is it a requirement on a home that you want to view the inside of?
Or is it just a nice bonus but no big deal if it is there?

I really would like to know what people think on this.

Thanks.

Is it time to change your lightbulb???

Not that I am the most energy conservative person in the world, anyone who knows me will say that I could be considered a pretty large user of electricity; but I came across a chart that astonished me. If you read below you will see the amount of money that can be saved by just changing 1 lightbulb in your home to one of those funnly looking fluorescent ones.

Two hours per day is 730 hours per year. Multiply by the cents-per-kWh calculated below. The compact fluorescent costs $3.43 to operate for a year, while the incandescent costs $14.89. That is a savings of $11.46 per year. Now I know that $11.46 isn't a lot, under $1.00 per month, BUT if you multiply that by the 15 or so bulbs you have in your home than the savings becomes something worth paying attention to. This is something that can be done that will have zero negative impact, you won't have to give up anything, no dieting necessary, to make a change that helps your pocketbook!!



So here's the equation using EPA facts and figures, including an average electricity cost of 20.4 cents per kilowatt-hour (kWh) for electricity. This is over the 12,000-hour lifetime of a 15-watt compact fluorescent bulb, which is equivalent to 12 1000-hour lifetime 60-watt incandescent bulbs:


Bulb with Electric rates @ 20.4c/kWh

Incandescent Compact Fluorescent
Lifetime usage 720 kWh 180 kWh


Lifetime electricity cost $146.80 $36.72


Replacement cost $6 (50 cents each) $3.50


Total cost $152.80 $40.22

MARKET REPORT FOR BERKLEY, MA AS OF OCTOBER 1, 2007

Berkley, MA

Total Market Report is provided to give you an overall picture of the current market conditions.The following report is for single family homes sold in Berkley from August 1, 2007- September 1,2007.

Single Family Homes

Number of Homes on Market 50 (Up 3 since last report)

Average Days on the Market 135

Number of Homes U.A.G 5

Average Price of U.A.G. Homes $307,420

Number of Homes Sold 2

Average Sold Price $645,500 $331,000 As of Sept. 1, 2007 ~ $349,073 AS OF AUGUST 4, 2007 ~ $356,473 AS OF JUNE 24, 2007***

Average Asking Price $421,204

Lowest Price $205,000

Highest Price $1,095,000

MY LAST MARKET UPDATE WAS SEPTEMBER 1 AND THE AVERAGE SALE PRICE WAS $331,000 THIS MARKET AVERAGE IS DIFFICULT TO USE FOR THIS MONTH AS THERE WERE ONLY 2 SALES WHICH IS CONSIDERABLY LOWER THAN THE LAST SEVERAL MONTHS AND 1 OF THE SALES WAS A HIGH END WATERFRONT HOME WHICH DOESN'T LEAVE AN ACCURATE BASIS FOR THE AVERAGE MARKET.

WITH ALL THAT BEING CONSIDERED I MADED A SEPERATE CATEGORY FOR HOMES U.A.G. WHICH ARE HOMES THAT HAD AN OFFER MADE AND ACCEPTED AND ARE WAITING TO CLOSE.

IF I TAKE THE AVERAGE PRICE OF THE HOMES THAT ARE U.A.G. AND THE AVERAGE PRICE OF THE HOMES THAT HAVE SOLD - DROP OFF THE HIGHEST AND LOWEST SALE PRICE THE AVERAGE IS $340,920. KEEP IN MIND THIS IS USING THE ASSUMPTION THAT THE HOMES THAT ARE U.A.G. SOLD FOR THEIR ASKING PRICE.

USING SALES OF HOMES THAT SOLD 3 OR 6 MONTHS AGO AS A BASIS OF VALUE FOR YOUR OWN WILL NOT GIVE AN ACCURATE CURRENT MARKET VALUE. AS YOU CAN SEE, IN THE PAST SEVERAL MONTHS HOME PRICES HAVE DROPPED CONSIDERABLY. MY FIRST REPORT TOOK FROM JANUARY TO JUNE AS A BASIS, THE SECOND REPORT WAS FOR JULY, THE THIRD REPORT WAS FOR AUGUST, AND THIS REPORT IS FOR SEPTEMBER. THIS SHOWS THAT HOMES IN BERKLEY HAVE DECREASED IN VALUE 7% SINCE JANUARY 1.

Will the rate cut affect me???

As most people are aware by now, the Fed, in a very wise move, decided to drop interest rates. As good as this news is I want people to understand that it DOES NOT mean that your interest rate will drop by the amount that it was lowered or even any at all. The Federal Reserve said it lowered short-term interest rates by half a percentage point, to 4.75%, to combat the effects of a weaker housing market and tighter credit on the broader economy. The steep reduction in the Fed funds rate surprised many on Wall Street who expected a more modest rate cut. Stocks rose sharply after the Fed's announcement, with the Dow Jones Industrial Average gaining 335.97 points, or 2.5%, to 13739.39.

If you look above I posted a picture on how the rate change may affect you. This is a great step to help stabalize the housing market. Only time will tell if it is enough!!

WE DID IT!!!

TO ALL THOSE REALTORS WHO DID THEIR JOB....OUR VOICES WERE HEARD!!

THIS IS SUCH A HUGE BENEFIT TO OUR CURRENT CUSTOMERS AND CLIENTS AND TO ALL HOMEOWNERS WHO ARE STRUGGLING TO MAKE THEIR MORTGAGE PAYMENTS.

IF THERE EVER WAS ANY DOUBT IN THE MINDS OF ANYONE AS TO WHAT WE AS REALTORS STAND FOR THIS SHOULD END IT! WE STAND FOR PROGRAMS THAT BENEFIT CONSUMERS...WE STAND FOR MORALS AND ETHICS WE STAND BEHIND OUR CLIENTS!!!

AS A GROUP WE ARE CAPABLE OF ANYTHING!

HOORAY!!!!!





Dear Roberta Files,

We are pleased to report that the House of Representatives today passed, H.R. 1852, the Expanding American Homeownership Act of 2007, by a vote of 348-72.

The National Association of REALTORS thanks you for taking the time to let your Representative know of the need for this critical legislation. Your voice was heard and you helped make the House victory one for all America. Thank you.

Pat V. Combs,
NAR President



--------------------------------------------------------------------------------

Visit the web address below to tell your friends about the FHA reform Call for Action.
Tell-a-friend!



If you received this message from a friend, you can sign up for NRDS Center.

The newest economic news

I just wanted to share with you a portion article I read yesterday..the news is troubling to say the least. I cannot stress this to home sellers enough ~ If you do not reasonably price your home when it is first listed it will sell for less money 6 months from now than you could obtain today!!!!!


Greenspan said he would expect "as a minimum, large single-digit" percentage declines in house prices from peak to trough, the Financial Times newspaper reported.

But the former chairman said that he would not be surprised if the drop was "in double digits."

A Call for Action

Below is a copy of a letter that I sent to my Congressman regarding the housing crisis. There is a bill currently in Congress # HR 1852 that will expand the FHA loan program and also allow for loan limit increases. Both of which will help out the financial problems many people are facing.




Representative Barney Frank
U.S. House of Representatives
2252 Rayburn House Office Building
Washington, DC 20515-0001

Subject: Support H.R. 1852 and the Frank/Gary Miller/Cardoza Amendment


Dear Representative Frank,

As a constituent and a REALTOR, I am writing to urge you to support H.R. 1852, the "Expanding American Homeownership Act of 2007," sponsored by Rep. Maxine Waters (D-CA) and an amendment to be offered by Representatives Barney Frank (D-MA), Gary Miller (R-CA) and Dennis Cardoza (D-CA) to further increase the FHA loan limits. These important measures would reform the FHA mortgage insurance program, once again providing American homeowners with safe, affordable mortgage alternatives.

H.R. 1852 will allow FHA to risk-base price its products; eliminate the 3% downpayment requirement on FHA loans for first time homebuyers; increase the number of reverse mortgages that FHA can insure; streamline the FHA condominium loan program; and increase the FHA loan limits nationwide and in high cost areas.

Regarding the latter provision, Representatives Barney Frank (D-MA), Gary Miller (R-CA) and Dennis Cardoza (D-CA) are expected to offer an amendment to further increase the FHA loan limits. I ask your strong support for their amendment. Instability in mortgage markets has increased and now affects both subprime and jumbo markets. American homeowners with mortgages whose payments will increase dramatically may soon find themselves at risk of foreclosure in a subprime mortgage they cannot refinance. Further increases in the FHA loan limits will provide these homeowners with a safe, viable mortgage option. In addition, this amendment will give homebuyers in high cost areas an affordable mortgage alternative to the now limited and significantly more expensive jumbo mortgage products.

FHA reform is needed now, more than ever. Please support H.R. 1852 and the Frank/Miller/Cardoza amendment when these measures come to the Floor of the House.



Sincerely,

Roberta Files



For up-to-date real estate news and information please visit www.berkleymass.com

Making an informed decision when pricing homes!

The current upheaval in the market has given rise to significant opportunities to help my clients make informed decisions.

Tom Sherman, President of Mortgage Services Unlimited in Dallas, emphasizes the importance of educating clients.

For home sellers, the following points are key:

* Home values will stay stagnant or potentially decrease.

* Qualified borrowers are looking for deals.

* Fewer borrowers are qualifying for home loans.

* Rising foreclosures tend to negatively affect home values.

* Increased days on the market (DOMs) increases the likelihood that buyers will aggressively negotiate prices down.

* Continued stress in the financial markets will affect consumer confidence.

* Loans may take longer to close.

* Appraisals are becoming more difficult to obtain.

* Properties should be funded before contract contingencies are removed.


It's critical for sellers to price their homes to sell -- and sell quickly -- decreasing the need for price reductions and the unfortunate result which is chasing the market down to sell.

The last posting's ooops!

I placed a property flyer up on my last posting and it obviously didn't post properly. So if you would like to see what it really looks like, please go to http://www.8karensway.com


I never claimed to be a genious with the internet.

WATERFRONT HOME

8 Karens Way Berkley, MA 02779

For Sale $659,900

Bedrooms: 4 + Bathrooms: 2½ Style: Victorian Colonial Square Footage: 1,834 Lot Size: 1.7 acres Year Built: 1987 WATERFRONT HOME.....CALLING ALL BOATERS! The property is an absolute piece of heaven, you can sit and watch the birds, listen to the peepers, relax to the noise of the water OR you can grab a sail boat, kayak or canoe and take a peaceful tour of the depth of the Taunton River OR take your full size boat straight to the ocean. You know the old saying...LOCATION LOCATION LOCATION...this home has it!    Home    Full Details    Photo Tour    Print Brochure    Plot Plan    Property Map    Area Schools    Schedule a Showing    Email Property Info    Mortgage Calculator    BOBBIE'S BLOG    MLS Home Finder    VISIT MY WEBSITE    About Me    Contact Me    Area Amenities Bobbie Files Keller Williams Realty Office: 508-238-5000 x.296 Mobile: 508-789-0217 Fax: 774-961-3513 Email: bobbiefiles@kw.com Website: www.berkleymass.com

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MARKET REPORT FOR BERKLEY AS OF SEPTEMBER 1, 2007

Berkley, MA

Total Market Report is provided to give you an overall picture of the current market conditions.The following report is for single family homes sold in Berkley from August 1, 2007- September 1,2007.

Single Family HomesNumber of Homes on Market
47

Average Days on the Market
144

Average Sold Price
$331,000 ~ $349,073 AS OF AUGUST 4, 2007 ~ $356,473 AS OF JUNE 24, 2007***

Average Asking Price
$432,485

Lowest Price
$215,000

Highest Price
$1,095,000

MY LAST MARKET UPDATE WAS AUGUST 4 AND THE AVERAGE SALE PRICE WAS $349,073 THIS IS A DECREASE OF $18,073 OR 5%. THAT MEANS THE MARKET PRICE IS STILL DROPPING. USING SALES OF HOMES THAT SOLD 3 OR 6 MONTHS AGO AS A BASIS OF VALUE FOR YOUR OWN WILL NOT GIVE AN ACCURATE CURRENT MARKET VALUE. AS YOU CAN SEE, IN THE PAST SEVERAL MONTHS HOME PRICES HAVE DROPPED CONSIDERABLY. MY FIRST REPORT TOOK FROM JANUARY TO JUNE AS A BASIS, THE SECOND REPORT WAS FOR JULY, AND THIS THIRD REPORT WAS FOR AUGUST. THIS SHOWS THAT HOMES IN BERKLEY HAVE DECREASED IN VALUE 7% SINCE JANUARY 1.

Tighter Lending Standards Affecting Home Sales

The article that is below says a lot about the current market and what is yet to come! The Northeast area is the ONLY area that has seen an increase in home sales, so possibly we are on our way out of the problem. BUT and this is a big, bold BUT we have yet to be hit from the recent mortgage fallout of the removal of "jumbo" mortgages from most lenders. A "jumbo" mortgage is a mortgage that is $417,000 or higher. So, if buyers cannot get a mortgage for the home that they want....how are they to buy it?? Which in turn will put more downward pressure on home prices.

Home prices have fallen an average of 9% since last year, some local towns have seen a drop of over 13% Raynham and Taunton being hardest hit and Berkley not too far behind.

The only thing in this market that separates a home from being "On the Market" as opposed to being "In the Market" is pricing. The difference between the 2 is HUGE....In the Market is where all the action and activity is; On the Market is above all the action and activity it's being on top of it not in it!
If you are not getting showings which leads to no offers than you are ON the market. If your home is on the market for a price that it would have SOLD for last year than you are ON the market. Please keep in mind that all numbers are relative...I mean that you will reap the savings on what you buy! A home that has a higher value than yours will ALWAYS have a higher value it will just do it on a lower range and the same goes in the reverse.

Please read the article below!!!


Tighter Lending Standards Affecting Home Builders

Despite some recent reports that the housing market may have hit its trough, the National Association of Home Builders says the bottom is still a ways off. Source: BUILDER Online News ServicePublication date: August 28, 2007

News About Home Sales Could Go From Bad to Worse
Publication date: August 28, 2007
By Noelle Knox
The news Monday from the National Association of Realtors was bad enough: Sales of existing homes fell in July to their slowest pace in five years. The glut of homes for sale is at a 16-year high. The median price is down for a record 12th month in a row.
What's really grim, though, is this: None of the figures reflect this month's turmoil in the mortgage market. Which is why the numbers will likely be even worse in coming months. And why the NAR doesn't expect the housing market to recover until early next year.

Thanks to the current credit crunch, where investors want no part of buying mortgages as an investment, home builders are having a harder time getting construction loans, would-be buyers are struggling to get mortgages, and home sellers can't find qualified buyers, the housing market downturn has further to go, says the National Association of Home Builders.

That's pressuring sellers to cut prices. "Prices would be falling even if all was well in the mortgage market," says Ian Shepherdson of High Frequency Economics. "So in today's troubled circumstances, we have to expect steep declines for the foreseeable future."
The glut of homes for sale is at a 16-year high. The median price is down for a record 12th month in a row.
What's really grim, though, is this: None of the figures reflect this month's turmoil in the mortgage market. Which is why the numbers will likely be even worse in coming months.
And why the NAR doesn't expect the housing market to recover until early next year.
"Unfortunately, worse news lies ahead," said Nigel Gault, U.S. economist for Global Insight. "That will mean more foreclosures and fewer qualified buyers, adding up to lower home sales and prices. It is hard to see a bottom before mid-2008."
The inventory of homes for sale is at its peak since the last housing recession, in 1991. There's a 9.2-month supply of single-family homes and nearly a year's worth of condos.
Still, proving again that all real estate is local, sales in the Northeast managed to rise from June to July and were flat in the South. It was the 2.2% drop in sales in the Midwest that weighed down the national numbers.
"The Northeast saw price increases close to 6%" compared with a year ago, says Lawrence Yun, the NAR's senior economist. "That was the first region to undergo weakness, and they are now climbing out of it. That is implying other regions could follow a similar path."
Any recovery might be brief. Mark Fleming, an economist at FirstAmerican CoreLogic, says high-cost areas will suffer from cutbacks in "jumbo" loans -- those over $417,000

I am posting this image which I got from the latest issue of Banker and Tradesman. I think it makes it easy to see just how long we have been in a declining market.

Do you have any news articles you would like to see published? Do you have a current event that you want to have reach people? Send me a copy and I will make sure it gets published ~ some restrictions will have to apply ~ email it to me at bobbiefiles@berkleymass.com

For the latest information of homes for sale visit www.berkleymass.com

Bristol County - Close up

I know the type appears small but just click on the image and it will enlarge.

As you can see from this chart, all towns in Bristol County have had price corrections. Raynham has had the largest reduction and Easton with the least, based on sales recorded at the Registry of Deeds. Not only have the prices gone down but the number of homes sold has also considerably dropped.

The latest housing numbers are released!

I wanted to share with you the latest housing and economic data released by N.A.R. (National Association of Realtors). These figures are through July ~ so they do not include the time frame with Countrywide's bad financial situation ~ and the information is compiled from nationwide data.

I sometimes wonder when I see announcements such as this if anyone has visited my neighborhood to get information. Our area has not seen an increase in housing starts, and I really don't see that consumer confidence is higher than earlier this year. Quite frankly I see people as more nervous about the economy and their job security. However, it does give us all a reason to be hopeful that we are almost, or at least on our way, out of this mess.

We'll see what the numbers look like at the end of August and September when the impact of some of the largest lenders going belly-up show. If the numbers still remain positive than we can all start breathing and hoping by the end of next year this will actually be considered the past!

HOUSING & ECONOMIC INDICATORS

		Current Figures	Time Period Covered	Next Release Date
Existing-Home Sales		SAAR* of 5.75 million units -- down 3.8% from previous month. Median price up 0.3%	June	8/27
Pending Home Sales Index		102.4 -- up 5.0% from previous month	June	9/5
New-Home Sales		SAAR* of 834,000 units -- up -6.6% from previous month	June	8/24
Housing Starts		SAAR* of 1.381 million units -- up 2.3% from previous month	July	9/19
Housing Affordability		104.4 -- down 5.4% from previous month	June	8/30
Mortgage Purchase Application Index		465 -- up 3.9% from previous week	Week of 8/10	8/22
Fixed-Rate Mortgage Rate		6.62% -- up 2 basis point from last week	Week of 8/16	8/23
GDP Growth		3.4% -- up from 2006:Q2	2007:Q2	8/30
Consumer Confidence		Surged 8.7 points to 112.6	July	8/28
Employment Situation		up 92,000 jobs from previous month	July	9/7
Consumer Price Index		edged up 0.1% from previous month	July	9/15
Producer Price Index		up 0.7% from the previous month	July	9/18
Retail Sales		up 0.3% from previous month	July	9/14

*SAAR = Seasonally Adjusted Annual Rate

Copyright NATIONAL ASSOCIATION OF REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500

Helping Borrowers Expected to Become Easier for Lenders

I just got this article out of the latest edition of Banker and Tradesman. If you know of anyone who is having difficulty paying their mortgage this is an option that may help them. I have a lot of additional information available on how to prevent a foreclosure, please contact me ...don't go through this alone.

August 13, 2007
By Jeff Haynes,Reporter

Homeowners facing foreclosure just got a potential lifeline from the accounting department.
A recent professional opinion on accounting standards should make it easier for lenders to restructure loans to borrowers likely headed toward foreclosure. Focusing specifically on loans that already have been sold to the secondary market, the opinion states that lenders are not required to repurchase troubled loans in order to rewrite their terms.

Changes to the loans could include lowering the interest rate, lengthening the term of the loan or other steps that would make the loan more affordable to the borrower. In addition to helping borrowers, the change may help investors in those loans, too.

For investors, “the benefit will be that they are going to lose less money,” said Robert B. Segal, chief investment officer for Danvers-based J. William Mantz Investment Advisors. Even though the yield will be less if a troubled loan’s interest rate is dropped, for example, from 8 percent to 6 percent, “investors could have a larger principal loss if that loan goes to foreclosure,” Segal said.

Eric Fischer, a partner at Boston-based law firm Goodwin Procter Inc. who specializes in banking regulations, agreed that reworking a loan can save money. “It’s more expensive to foreclose than to lower the interest rate,” Fischer said. Foreclosure, he added, is “a messy, expensive prospect.”

The green light for lenders to rewrite troubled, securitized loans without repurchasing them comes from the U.S. Securities Exchange Commission; its chief accountant, Conrad W. Hewitt; and the Norwalk, Conn.-based Financial Accounting Standards Board, whose standards are officially recognized by the SEC. The opinion was written in response to an inquiry from the House Financial Services Committee chaired by U.S. Rep. Barney Frank, D-Mass.
The request outlines the committee’s efforts to help prevent foreclosures by rewriting troubled loans, and the complications that securitizing loans creates for lenders trying to rewrite those loans.

“A number of parties have brought to our attention that [Financial Accounting Standards Board Statement No. 140], the accounting standard that guides securitizations, may not clearly state at what point a loan may be modified – when default is reasonably foreseeable or once default or delinquency has already occurred,” states Frank’s letter. “The lack of clarity may be leading some institutions to withhold making some loan modifications that may benefit borrowers – and bondholders – for fear of being found in violation of FAS 140.”

The response from the SEC was that lenders could indeed rewrite the securitized loans “when default is reasonably foreseeable,” and without having to buy them back. “Specifically, there appears to be a consensus in practice, and it is our view that entering into loan restructuring or modification activities (consistent with the nature of activities permitted when a default has occurred) when default is reasonably foreseeable does not preclude continued off-balance sheet treatment under FAS 140,” wrote Hewitt in the response.

‘A Constructive Approach’

Frank liked the SEC’s response. “This is a constructive approach that will allow mortgage lenders to provide help at the earliest possible moments to people who might otherwise be trapped in bad loans or forced into foreclosure,” the congressman said in a prepared statement.
The entity that winds up working with the borrower to restructure the loan, however, may not be the original lender, but the company with servicing rights on the loan.

Banks can sell loans without recourse, meaning there is no obligation to buy them back, said Christopher Dannen, vice president and residential lending sales manager for Bridgeport, Conn.-based People’s United Financial Inc. If the bank has sold both the loan and the servicing rights, “there’s not a lot of incentive for us to get into loan modification,” Dannen said. But People’s United does keep some of the loans it originates, and evaluates on a case-by-case basis if a loan needs to be restructured, he said. “If we own the loan, we own the asset, and it behooves us to do that,” said Dannen, who is also second vice president of the Connecticut Mortgage Bankers Association.

It’s an approach Segal understands. “Typically, banks don’t want to be property owners,” Segal said. “It’s just expensive to go through the foreclosure process. If [borrowers] can stay in the house, it’s beneficial to everyone.” “I think the more the federal government gets involved, the bigger incentive [lenders] will have,” Segal said. “Ultimately, the goal of Congress will be to help consumers stay in their homes.”

While industry observers believe the opinion rendered by the SEC will make it easier for borrowers to get their troubled loans rewritten in more manageable terms, the success the borrowers will have under those new terms remains to be seen. “Making such accommodations does not guarantee the loan won’t eventually wind up in foreclosure,” Fischer said. “So often, dropping a loan to a 6 percent interest rate isn’t a long-term solution. If the economy turns bad, or if the loan itself is bad enough, lowering the interest rate or lengthening the term of the loan is not going to solve the problem. It’s just going to delay it.”

(c)2007 The Warren Group Inc., 280 Summer Street, Boston, MA 02210. All rights reserved.

Current Market Trends

HOUSING

Where Housing Is Headed

A look at fundamental indicators in 28 major real-estate markets. (See related article) — Compiled by James R. Hagerty, 07/25/07

Metro area	Recent price trend*	Change in housing inventory**	Employment outlook***	Loan payments overdue****
Atlanta	Down	+43%	Strong	4.6%
Boston	Down	-16%	Weak	3%
Charlotte, N.C.	Up	-	Strong	3.2%
Chicago	Down	+37%	Weak	3%
Dallas	Down	+8.5%	Very Strong	4.3%
Denver	Down	-5.2%	Average	3.4%
Detroit	Down	+15%	Very Weak	5.1%
Houston	Flat	+18%	Very Strong	4.2%
Jacksonville, Fla.	Down	+33%	Average	3.7%
Las Vegas	Down	+21%	Very Strong	4.8%
Los Angeles	Down	+28%	Weak	2.9%
Miami	Down	+43%	Average	5.3%
Minneapolis	Down	+11%	Average	3.3%
Nashville	Down	+35%	Average	3.4%
New York	Down	+4.5%	Weak	3.3%
Orange County, Calif.	N/A	+22%	Average	2.4%
Orlando	Down	+41%	Very Strong	3.7%
Philadelphia	Down	+11%	Weak	2.7%
Phoenix	Down	+20%	Average	2.9%
Portland, Ore.	Down	+57%	Strong	2.1%
Raleigh-Durham, N.C.	Up	+17%	Strong	2.5%
Sacramento	Down	+7%	Very Strong	3.8%
San Diego	Down	+0.3%	Average	2.8%
San Francisco	Down	+16%	Average	2.3%
Seattle	Flat	+55%	Strong	1.8%
St. Louis	N/A	+31%	Weak	3.3%
Tampa	Down	+29%	Strong	3.7%
Washington, D.C.	Down	+11%	Average	2.7%

* Overall metro area price trend compared with prior month, based on a June survey of real estate agents by Banc of America Securities. Actual price movements often vary sharply within a metro area.

**Change from a year ago in the number of single-family homes, condos, townhouses and co-ops offered in multiple-listing services at the end of June 2007. New York includes Manhattan, Brooklyn, Queens, northern New Jersey, Long Island and Fairfield County, Conn. San Francisco includes the city plus eight surrounding counties. Washington includes the city plus Maryland and Virginia suburbs. Dallas includes Fort Worth and other North Texas towns.

***Job growth projections by Moody's Economy.com for the two years ending in mid-2009.

****Percentage of mortgage loans 30 days or more delinquent in latest quarter, based on data from Equifax and Moody's Economy.com. U.S. average is 3.3%.

This is from the latest addition from the realestatejournal.com