Freddie Mac Offering $1500 for Condo Association Fees.

Monday, August 15th, 2011, 8:27 am

Freddie Mac is offering eligible buyers up to $1,500 for condominium association dues.

The government-sponsored enterprise said the incentive is for condos available through its HomeSteps unit, on the market for at least 120 days and sold to owner-occupants.

Buyers can apply for Freddie's Condo Cash offer between Monday and Nov. 15, and must close before Dec. 30.

The GSE offers a two-year limited home warranty covering electrical, plumbing, air conditioning, heating and other major systems. Freddie Mac also extends discounts of up to 30% on appliances for a new buyer.

In May, Freddie began offering up to 3.5% buyer's closing cost assistance, as a way to help drive sales higher through the summer selling season.

Writen by: Jason Philyaw.

Top 5 Things You Should Know to Sell Your Home Fast.

By Sharon Snyder Print Article

RISMEDIA, August 8, 2011—While many markets around the country continue to experience challenges as the market makes its slow turnaround, Ann Arbor real estate is selling fast, and it’s because we follow some simple rules.

1. Curb appeal is key to selling your home
If it looks rundown from the outside, then it probably is on the inside too. Curb appeal is all about first impressions. Buyers want to feel like they could live in a home from the moment they pull up in front of it. Basic improvements such as exterior painting, cutting the grass and planting some flowers improve the look of a home from the outside tremendously.

2. Deodorize
Every home has a unique odor, especially if pets are present. Be sure to professionally clean the carpet and the furniture and replace carpets if necessary. Keep pets clean and the home free from dander. Consider taking pets and pet cages if present in the home with you when you leave for showings.

3. Really want to sell your home? Repair and repaint
A little putty and paint can make all the difference. Repair damaged dry wall, gouges in wood surfaces and paint the walls. Bright colors such as those in children’s rooms should be repainted with a neutral color. We like to repaint our Ann Arbor homes with a neutral shade that will be attractive to a wide variety of buyers.

4. Put away your personal collections
Here, the old saying that one man’s treasure is another man’s junk rings true. De-clutter your home by packing up knick-knacks, heirlooms, personal collections, and even family photos. After all, they are special only to you and your goal is to make the home presentable to the widest number of people possible. Expensive collections should be packed away as well to keep them safe.

5. No guns, drugs or valuables
If you own a gun, be sure it’s unloaded and lock it away. Don’t leave it accessible to anyone viewing your home, especially anyone with children. The same is true for prescription drugs, fine jewelry, valuable art work, money and anything else you want to keep safe.

What the Debt Downgrade Means for Your Mortgage!

New York (CNNMoney) -- At least one fear was not realized amid Monday's meltdown: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor's downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market.

In fact, the initial response to Fannie and Freddie getting cut to AA+ from AAA was precisely the opposite. Mortgage rates were poised to continue declining.

HSH Associates, which surveys lenders, quoted the average 30-year fixed rate mortgage at 4.44% Monday. "We expect to see rates go into the 4.30's by noon tomorrow," said Keith Gumbinger, of HSH Associates.

Mortgage rates are set off of the interest rates on U.S. Treasury notes and bonds. Even though Standard & Poor's pulled its AAA rating of the United States Friday night, investors still rushed into U.S. Treasury securities Monday as a safe haven, believing more in the "full faith and credit of the United States" than in the opinion of Standard & Poor's credit analysts. As investors snapped up Treasury notes and bonds they pushed down interest rates on those securities, which move inversely to prices.

How Fannie Mae's downgrade impacts you
Late Monday afternoon, the 10-year Treasury note traded at a yield of 2.34%, down from 2.56% on Friday and 3% just two weeks ago, a huge move. That 10-year yield is the benchmark used to set 30-year fixed mortgages.

"The flight to quality effect is dominating," said Walt Schmidt, senior vice president of FTN Financial Capital Markets. "The net effect is lower mortgage rates."

Stock market plunge: Not just a rich guy's problem
Fannie Mae and Freddie Mac, now 80%-owned by the U.S. government after receiving more than $150-billion in federal bailout funds, purchase bundles of mortgages from banks, providing lenders with fresh cash to make new loans. Fannie and Freddie then package those mortgages into securities that are sold to investors, most of which went sour during the financial crisis.

Indeed, on Monday investors demanded slightly higher interest rates for such mortgage-backed securities, increasing the difference- or spread- between mortgage securities and Treasuries. But that increased spread, which normally would result in higher mortgage rates, was more than made up for by the drop in Treasury security yields.

Your money in a AA-rated world
"That flight to safety is completely overshadowing any increase in rates that the downgrade might have brought," said Gumbinger of HSH Associates.

Auto loan rates may also slide lower since they too are tied to Treasury yields. The yield on 3-year Treasury notes dipped Monday to .45%, which is likely to pressure down 48-month auto loan rates. The national average auto loan rate was 5.6% Monday, according to bankrate.com.

Analysts warn the drop in interest rates may not last. If investment flows were to move back into stocks and out of bonds, interest rates on Treasury securities, and consequently mortgages, would rise.

"Over the long-term, if the U.S. has to pay more in interest rates, consumer rates will likely go up," said Greg McBride, senior financial analyst for Bankrate.com.

For now, lower mortgage rates may offer only limited benefits to American consumers. Banks' lending standards have been tough recently, and consumers need the wherewithal to qualify for loans. That appears increasingly difficult as the economy continues to sputter.


First Published: August 9, 2011: 5:53 AM ET

5 Questions to Ask Your Mortgage Lender

Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house!

Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional:
1.Are you a bank, a broker, or both? Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise.



Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan - low down payment and moderate qualification guidelines - without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely.



Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages - Plans A, B, C and D, if you will - which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out.

2.Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative).



The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible.

3.How long will it take to close my loan? How much time will I need for loan and appraisal contingencies? The time frames for closing your mortgage - which often drive the time frames for closing your home purchase - often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage.



When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process.

4.Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval.

5.How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset - and largest financial obligation.

Mortgage Rates Hold Steady!

By DREW FITZGERALD And JOHN KELL

Mortgage rates changed little in the past week, snapping a streak of weekly declines that had taken fixed rates to the lowest points of 2011, according to the latest survey from Freddie Mac.

While the 30-year fixed-rate mortgage rate ticked up to 4.50% in the week ended Thursday from 4.49% last week, still well below last year's 4.75% average, rates on 15-year fixed-rate mortgages ticked down to 3.67% from 3.68% the previous week and 4.20% a year earlier.

Mortgage rates generally track Treasury yields, which move inversely to Treasury prices. Rates have slumped for months as yields on Treasurys slid amid economic uncertainty.

Freddie Chief Economist Frank Nothaft said mortgage rates held relatively steady after market participants shrugged off recent reports that inflation was picking up because the increases have been in line with expectations.

Home mortgage debt has been declining, especially through second mortgages, according to the Federal Reserve. Household mortgage balances fell by more than $930 billion from the March 2008 peak through this past March, with second mortgages accounting for $820 billion of that.

Meantime, the Mortgage Bankers Association on Wednesday said the volume of mortgage applications jumped a seasonally adjusted 13% last week from the previous week. Refinancing activity jumped nearly 17%, according to the weekly survey, which covers more than half of all U.S. retail residential mortgage applications. Purchasing activity rose 4.5% in the week ended last Friday.

In the latest week, five-year Treasury-indexed hybrid adjustable-rate mortgages fell to 3.27% from 3.28% last week and 3.89% a year earlier. One-year Treasury-indexed ARM rates rose to 2.97% from 2.95% the prior week but still down from 3.82% a year earlier.

To obtain the rates, fixed-rate borrowers required an average payment of 0.7 point. The five-year hybrid adjustable rate mortgages required a 0.6-point payment, while one-year adjustable-rate mortgages required a 0.5-point payment. A point is 1% of the mortgage amount, charged as prepaid interest.

3 Tips for the First-Time Home Seller

RISMedia, June 14, 2011—Today’s buyer-take-all bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t measured in the profit made on the sale, but by the enjoyment the owners had from living in the home.
Here are three things experienced sellers would tell you, if they could.

Price it realistically from the start

“Your largest number of showings will occur in the first two to three weeks,” says Mark Ramsey, a broker in Charlotte, N.C. One reason: “The (multiple listing service) systems and the Internet tend to drive the majority of showings,” he says. Many buyers are plugged in electronically. So the minute something new pops up that meets their criteria, they want to see it.

Take advantage of that sweet spot by pricing the house competitively right out of the gate, he says.

When first-time sellers James and Emily Foltz put their Oklahoma City home on the market last summer, their agent gave them a comprehensive list of the initial asking prices of nearby homes like theirs, along with the final selling prices. “Some varied by $30,000,” says James Foltz.

It gave them an X-ray of their market.

How you style the price is important. The Foltzes first marketed their home for $155,000. But lowering it to $150,000 meant the listing appeared within the computer search parameters that buyers commonly used in that price range, Foltz says.

The result: A few weeks after the price change, they had a winning offer.

Be prepared to lose some money

Want to sit with a house that won’t move? Be the first-time seller who insists you can get the appraised value, the tax assessor’s estimate or whatever you paid a few years ago.

“It seems like there’s no relationship between your assessed value, taxable value and the actual market value of our house,” says Pat Vredevoogd Combs, past president of the National Association of REALTORS®. “There doesn’t seem to be any correlation.”

The truth is that your house is worth what buyers are willing to pay. No more. “This is a true market that Adam Smith would have loved—totally based on supply and demand,” Combs says. That means many buyers should be prepared to lose some money or hang onto the home until the price rises.

“We did end up taking a loss,” says Foltz, who wrote a check for $3,000 at the closing table. The good news is that the couple sold their home in less than two months.

Beware the agent who promises big profits, Combs says. That person may just be after your business. “Don’t go with anyone who doesn’t use comps,” she says. And study sales prices, not asking prices, for real estate.

Promotion, promotion, promotion

One question to ask yourself and pose as you interview agents: How will you reach the home’s target market?

“You have to consider who your most likely buyers are for what you’re selling and cater to that group of people,” Ramsey says.

Targeting 20-somethings who live on their smartphones? You need to effectively access the networks your buyers are tapping to find their next home. One big trend: QR (or “quick response”) bar codes that allow smartphone users to access property information electronically, he says.

The typical starter home can also appeal to downsizing empty nesters, says Ramsey. To serve their needs, you might also want to have a phone number that instantly reaches someone who can provide details and answer questions, he says.

And don’t neglect the modern version of curb appeal: using lots of photos on real estate listings’ websites. However you market your house, you need a good number of clear, well-lit, professional-quality pictures that show your house at its best.

5 More Things You Didn't Know Could Get Your Home Sold

Last year, we talked you through some surprising selling points - housing hot-buttons that can get your home sold, stat, like having a Trader Joe’s market nearby. There’s so much information on the web these days about how to stage a home and create compelling curb appeal, that you might think you know all you need to on the subject.

Just when you thought you’d mastered the matter, we thought we’d brief you on 5 more things that can get your home sold, some or all of which might never have occurred to you.

1. Your neighbors. Most homeowners contemplating selling their homes understand the importance of well-kept neighboring homes. Many a buyer has pulled up to an amazing house, viewed it, and left shaking their head with woe because they just can’t cotton to buying the place on account of the shoulder-high weeds, car in the yard or crumbling ruins of the house next door.

On the flip side, your neighbors themselves - not just the homes, but the people - can actually help sell your home. Many homeowners know people who want to live in their neck of the woods; this is one reason many seasoned real estate professionals hold their listings open to neighbors and send out postcards to neighbors announcing the listing - the neighbors might know people who are interested in your home!
Also, neighbors who are out and about chatting with each other, laughing and playing with their kids, mowing their lawns or painting their fences, or even who just offer a smile and helpful area knowledge to the buyer-to-be they pass on the street can make a very favorable impression on prospective buyers.

It’s a good idea, if and when you decide to list your home for sale, to touch base with neighbors you know and let them know; it’s in their best interests to get good new neighbors, so they might be able to go the extra mile in showing the neighborhood’s biggest asset - themselves - off to its best advantage.

2. The right sights, smells and sounds. It’s no news flash that the view of a used car lot; stinky foods or animal smells; and the siren song of a fire station next door could be deal-killers. What might surprise is some of the right sights, smells and sounds that can help seal the sale of your home. My experience has been - agents, chime in here! - that the more natural beautiful sights, smells and sounds are, the more favorably they’ll be received by the largest population of prospective buyers.

For example, playing a soundtrack of classical musical is fine, but will cause some skeptical buyers to wonder what noises you might be trying to cover up - especially if you’re in a condo or other potentially thin-walled property where neighbor noise might be an issue. On the other hand, birdsong can be attractive to some buyers. Artificial air fresheners? Not so much. The scent of the jasmine or lavender that grows in your yard? Even allergy victims can appreciate that.

You might be desensitized to the amazing views of trees, mountains or even water outside your window, but pulling back the curtains so prospective buyers can see for themselves is an absolute must.

Home buying is a multi-sensory experience - visual staging of the property itself is no longer a plus, it’s a must. But homes which create pleasant impressions that fire on all of a buyer’s sensory cylinders definitely have the edge on their competition.

3. Your dog. The New York Times ran a piece a few months ago about sweet, well-behaved dogs (and cats!) who reportedly helped sell their owners’ Manhattan apartments. In a departure from the conventional wisdom that dogs should be removed and every trace of their presence erased from the home during showings, the article featured several buyers and brokers attesting to their belief that the presence of a particular cat or dog “help[ed] sell a property by making the place seem warmer or more appealing.” And I’m sure you’ve all heard me tell the story of the San Diego buyer who fell in love with a tract home listed at a price higher than all the nearly identical comparables he’d seen and wanted to make a full-price offer immediately - so long as the deal included the dog!

Definitely consult with your agent before you decide to implement leaving your dog at home for showings as part of your plan. I’m a dog lover, and would be concerned that someone might inadvertently let one of “my girls” out, if I left them there while my house was being shown; as well, would-be buyers or their agents may have allergies your pet could set off.
Lately, it seems like I’ve seen many brokers attempting to capture the best of both worlds by making sure that the family pet or even the broker’s own pet is captured in a charming tableau in 1 or 2 of the listing pictures, even if they’re not present at the home during showings.

4. Your happiness. Video and even written love letters that extoll all the virtues for which you love your neighbors, your neighborhood and your property are contagious to buyers. I’ve seen sellers help buyers see their homes through their own loving eyes by posting videos on YouTube and including the link on the listing flyer or even by putting a binder containing a letter plus menus and flyers from their favorite neighborhood restaurants, dry cleaners and other local merchants out on the counter during showings.

Wide-open curtains that let light stream in, light and bright paint and decor colors and other home features that science has proven make residents more happy and functional also create this thought process in a buyer’s mind: “Hmm, these people seem happy here. I could be, too.”

Similarly, indicators that you invested a lot of love in your home, by keeping it in immaculate order and pristine condition, by tending a well-cared for kitchen garden, lovingly furnishing and making comfortable (if not overly customizing) your kids’ rooms, all create the feel that a home was happily lived in - it’s like staging your home with a life well-lived, not just paint and tile.

5. The freeway or subway you thought was too close. There is such a thing as a freeway or elevated train tracks being too close to your home; if your place rattles or roars, for example, every time the train passes, chances any buyer will view that as a selling point are pretty slim. However, homebuyer attitudes toward being located near freeways and subways or bus lines are a-changing. Every upward click of gas prices renders buyers a tiny bit more interested in a location that is more commutable.

Where yesteryear’s buyers were all about the posh exclusivity of far-out suburbia, today’s buyers are more interested in financial and ecological efficiency and convenience. I’ve never heard so many homebuyers looking to own homes that will allow them to ditch their cars entirely as I have in recent years!

What might once have been seen as too close to the freeway has gotten a new spin, lately, as a highly convenient, commuter-friendly location.