Real Estate Industry Heating Up | RISMedia

My wife and I recently attended our once-a-month cruise club cocktail hour, in which we are two of the only working stiffs in the group, as most of the members are retired. Obviously whenever I show up because of my real estate history in this area of the state, the conversation always goes straight to: “What is happening in the real estate market?”

I found myself in a very upbeat, and excited mood and I was raving about the real estate market and what I see happening over the next few years. I was particularly excited, because for the very first time in my entire career, I signed 30 closings in one day the day before the cruise and had in fact signed almost 60 closings that week.

Our business in March was up 31% over February and by April 9th, we had already passed the halfway mark of what we did in March. The real estate industry is heating up and will only continue to heat up. Needless to say I ended up surrounded by several members dying to hear the good news.

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Lenders Flooded with Refinancing Applications as Mortgage Rates Fall | RISMedia

With mortgage rates dancing around a 65-year-low of 4.75%, homeowners are checking their credit scores and lenders are being deluged with refinancing applications.

“I’ve been through about four refinance crazes in my career, and this is the most significant I’ve seen,” said Marshall Boyd, co-president of Southwest Bank Mortgage and a founding and managing partner of Williams Trew Real Estate Services.

“The No. 1 reason is that rates are lower this time,” Boyd said. “I never dreamed we would be refinancing people with loans in the 5’s to loans in the 4’s.”

Linda and Jeff Hochster watched rates for several months before refinancing their home in Fort Worth’s Mira Vista neighborhood. “We started doing research and reaching out to brokers. We just kept watching as the rate was falling over the last 45 days,” said Linda Hochster, a retired public relations manager for Southwest Airlines.

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Featured Bank Owned Properties 041209

Traughber St., $493,000, 6 Bedrooms, 4 Bathrooms, 2038 SqFt
Randolph Dr., $483,600, 5 Bedrooms, 3 Bathrooms, 2197 SqFt
Kring Dr., $471,900, 3 Bedrooms, 2 Bathrooms, 1760 SqFt
Glengarry Dr., $449,900, 3 Bedrooms, 2 Bathrooms, 1407 SqFt
Merrill Lp., $444,900, 3 Bedrooms, 2 Bathrooms, 1221 SqFt
Parvin Dr., $434,900, 5 Bedrooms, 3 Bathrooms, 1942 SqFt
Destino Cir., $421,900, 4 Bedrooms, 3 Bathrooms, 1954 SqFt
Azule Ave., $414,900, 3 Bedrooms, 2 Bathrooms, 1208 SqFt
Ralene Pl., $409,900, 3 Bedrooms, 2 Bathrooms, 1041 SqFt
Kimball Dr., $404,900, 4 Bedrooms, 2 Bathrooms, 1618 SqFt

Tax Advice for Rental Property Owners - BusinessWeek

While you're not allowed to deduct principal payments on loans, there are a few tactics you can try to reduce your tax liability

My vacation rental business owns 23 properties on which we make over $200,000 in principal payments annually. Since we make $195,000 in annual profit, every year we end up in the hole financially. We take depreciation on the properties, but it doesn't offset our taxes by much. Is there a way to deduct the principal payments we're making on our properties? —D.P., Cartersville, Ga.

No. "You cannot deduct principal payments on loans," says Bill Fleming, a tax partner at PricewaterhouseCoopers. "This is a typical issue with any leveraged investment—especially real estate, since that is nearly always leveraged."

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Housing Most Affordable: May be Time to Move from Renting to Owning

Falling housing prices, historically low interest rates, and tax credits are creating an enticing environment for renters to convert to homeowners.

"We are still going to have a tremendous amount of foreclosures, price declines, and best opportunities to buy properties at amazing prices," says Bruce Norris of The Norris Group.

If that sounds like a mixed bag of bad and good, indeed it is. Consumers have been inundated with news about a troubled real estate market. "If you look at the closings for California, 55 percent or more closings every month are lender-owned properties; that ratio has never existed before. So, the lenders are really dictating the prices at this point and there are so many [lender-owned properties] that the appraiser almost has no choice but to give that comp a lot of credence," says Norris. But the good news, especially for those who have been wanting to take the plunge into homeownership is that markets across the country are ripe for choosing the most suitable home.

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Time to refinance? You've got to run the numbers - MarketWatch

WASHINGTON (MarketWatch) -- Question: I have a two-year-old, 15-year cash-out refi in Texas. It's now considered a home equity loan, at 6.5%. I am thinking that it does not make sense for me to refinance again at 5% to save $170 per month because I would have to pay two additional years on the back end.

The savings is net of borrowing 100% of the $5,000 in closing costs, so there will be no up-front cash out of pocket. The original loan was for $143,500 and has a balance of $131,500. By refinancing, the $1,250 payment would be reduced to $1,080 on a new loan balance of $136,500. E.L.

Answer: To make the right choice, at least arithmetically, you gotta run the numbers. Here's how:

1. Figure out what you are going to spend by refinancing. In your case, that would be $5,000 plus, since you are going to roll that amount into the loan's principal, whatever your interest costs will be.

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Mortgage rates rise, but 30-year fixed-rate still below 5% - MarketWatch

CHICAGO (MarketWatch) -- Mortgage rates rose this week, but the average rate on 30-year fixed-rate mortgages remained below 5%, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.

The 30-year fixed-rate mortgage averaged 4.87% for the week ending April 9, up from last week's 4.78% average. The mortgage averaged 5.88% a year ago.

Rates on 15-year fixed-rate mortgages averaged 4.54%, up from 4.52% last week. The mortgage averaged 5.42% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.93%, up slightly from 4.92% last week, but still well below their 5.56% average a year ago. One-year Treasury-indexed ARMs averaged 4.83%, up from last week's 4.75%; the ARMs averaged 5.18% a year ago.

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Common Questions About 1031 Exchanges

By C. Grant Conness, President, 1031 Alternatives Group

Many investors have asked what exactly is a 1031 exchange, what are the guidelines and timelines, and can you legally defer your capital gains taxes? I thought it would be beneficial to answer some of your most common questions in this article.

What is a §1031 Exchange?

A §l031 Exchange is a transaction in which a taxpayer is allowed to exchange one investment property for another by deferring the tax consequence of a sale. The transaction is authorized by §1031 of the IRS Code.

The IRS Code actually reads: "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like kind, which is to be held either for productive use in a trade or business or for investment."

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Featured Bank Owned Properties 041109

Lakewood, $394,900, 3 Bedrooms, 2 Bathrooms, 1108 SqFt
2nd St., $389,900, 3 Bedrooms, 2 Bathrooms, 1246 SqFt
Omira Dr., $389,900, 4 Bedrooms, 2 Bathrooms, 1400 SqFt
Alderwood, $375,000, 4 Bedrooms, 2 Bathrooms, 1399 SqFt
S 9th St., $374,900, 6 Bedrooms, 2 Bathrooms, 1700 SqFt
Story Rd., $369,000, 4 Bedrooms, 2 Bathrooms, 1476 SqFt
Eulalie, $344,900, 3 Bedrooms, 2 Bathrooms, 1232 SqFt
Turley Ct., $324,900, 4 Bedrooms, 3 Bathrooms, 1479 SqFt
N 17th St., $314,000, 3 Bedrooms, 2 Bathrooms, 1260 SqFt
Dixon Rd., $312,900, 3 Bedrooms, 1 Bathroom, 1085 SqFt

Fremont Bank lends $800 million in home mortgages - San Francisco Business Times:

Fremont Bank said Friday that it has made $800 million in home mortgages in the past 90 days.

The loans went to 3,600 borrowers and the bank expects to provide an additional 15,000 to 20,000 homeowners the ability to refinance by year-end.

The figures show that community banks are participating in the mortgage lending boom as mortgage rates fall to the lowest levels in years. Wells Fargo (NYSE: WFC) said Thursday that it expects record first-quarter profit resulting from its purchase of Wachovia and its brisk mortgage business.

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Defaults Hit Home Values

Foreclosure homes vary in appearance from community to community. Some foreclosure sales are handled quietly and quickly resold by the lender for market value. One day a moving van pulls up, loads the occupant’s belongings and departs, shortly followed by a real estate broker’s For Sale sign. Few weeks later, a sold sign pops up and new owners move in.

In other neighborhoods, a foreclosed home might be boarded up and plastered with large signs advertising bank-owned or REO. Some of those homes might remain in an abandoned condition for years. The weeds grow high enough to cover sidewalks, pranksters throw rocks through second-floor windows, and the home becomes an eyesore, a dumping ground for used mattresses and automobile parts.

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Clock Is Ticking For First-Time Home Buyers - MarketWatch Video

Clock Is Ticking For First-Time Home Buyers - MarketWatch Video

With Affordability Up, Home Buyers Return to the Market

Thanks to record low mortgage rates and declining home prices, 55 million families - or half of all U.S. households - can afford today’s $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB). “That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We are now seeing the first signs that buyers are returning to the marketplace.”

Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.

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Top Economists Say Recovery Has Begun

Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com.

Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.

“We’re starting to see some pent-up demand for goods,” he says.

But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”

Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.

Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.

"The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.

Source: CNNMoney, Chris Isidore (04/06/2009)

Featured Bank Owned Properties 041009

Decatur Dr., $299,900, 3 Bedrooms, 1.5 Bathrooms, 960 SqFt
Platte River, $289,900, 3 Bedrooms, 2 Bathrooms, 1152 SqFt
Hiawatha, $284,900, 4 Bedrooms, 2 Bathrooms, 1353 SqFt
Amaryl Dr., $275,000, 2 Bedrooms, 1 Bathroom, 899 SqFt
Lyndale Ave., $274,900, 3 Bedrooms, 2 Bathrooms, 1667 SqFt
Pacina Dr., $269,900, 3 Bedrooms, 2 Bathrooms, 1200 SqFt
Azucar Ave., $259,900, 3 Bedrooms, 2 Bathrooms, 1290 SqFt
Poplar Dr., $237,445, 4 Bedrooms, 2 Bathrooms, 1542 SqFt
Gion Ave., $225,900, 2 Bedrooms, 1 Bathroom, 1038 SqFt
Beeman Dr., $220,000, 3 Bedrooms, 1 Bathroom, 887 SqFt

At-Risk Homeowners in Luck - Multi-Agency Crackdown Targeting Foreclosure Rescue Scams, Loan Modification Fraud in Place | RISMedia

RISMEDIA, April 7, 2009-As homeowners and communities throughout the country continue to face devastating consequences from the deep contraction in the economy and the housing market, the Obama Administration announced a new coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. The new effort aligns responses from federal law enforcement agencies, state investigators and prosecutors, civil enforcement authorities, and the private sector to protect homeowners seeking assistance under the Administration’s Making Home Affordable program from criminal actors looking to perpetrate predatory schemes.

The U.S. Department of the Treasury, the U.S. Department of Justice (DOJ), the Department of Housing and Urban Development (HUD), the Federal Trade Commission (FTC), and the Attorney General of Illinois discussed new initiatives to coordinate information and resources across agencies to maximize targeting and efficiency in fraud investigations, alert financial institutions to emerging schemes, step up enforcement actions and educate consumers to help those in financial trouble avoid becoming the victims of a loan modification or foreclosure rescue scam.

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Survey Says Owners Still Overvalue Homes | RISMedia

RISMEDIA, April 7, 2009-(MCT)-Many home sellers are still out of touch with the changing housing market, a new survey shows.

Almost half of homeowners think their houses should be priced 10% to 20% higher than their sales agents have recommended, according to a nationwide survey by California-based HomeGain.

No wonder fewer than 20% of agents nationwide are reporting that home buyers are telling them that homes on the market are priced fairly.

Almost 60% of agents say potential buyers are telling them that home asking prices are too high, HomeGain found.

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Bank Owned: 4572 Capitola Ave., San Jose, CA.

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