This survey provides a snapshot of consumer preferences and their perception about homeownership and affordability! 

Do they feel it is a part of the American dream?

Home owners have the positive view.

Home Ownership is possible and here in the

Las Vegas Valley we have loan programs available to assist

in the process if needed.  Call Today!

www.CallKim.net                 702-521-3939

STAY SAFE.....take precautions when it comes to your fire risk!

A wonderful time of year!  Stay safe!

Residential fires take their toll every day, every year, in lost lives, injuries, and destroyed property. But many conditions that cause house fires can be avoided or prevented. Taking the time for some simple precautions, preventive inspections, and concrete planning can help prevent fire in the home and can save property and lives should disaster strike.

• *Check holiday lights for fraying or broken wires and plugs. Follow the manufacturer’s guidelines as to how many multiple strands can be joined together, as a fire hazard could result from overload. Enjoy indoor holiday lighting only while someone is home, and turn them off before going to bed at night.
• *Candles add a welcoming, festive feeling, and need to be placed in stable holders and located away from flammable items, drafts, pets and children. Never leave burning candles unattended, even for a short time.
• *Keep live Christmas trees in a water-filled stand and check daily for dehydration. Needles should not easily break off a freshly cut tree. Brown needles or lots of fallen needles indicate a dangerously dried-out tree which should be discarded immediately. Always use nonflammable decorations in the home, and never use lights, even LED types, on a dried-out tree.
• Electrical items including lamps, appliances, and electronics should be checked for frayed cords, loose or broken plugs, and exposed wiring. Never run electrical wires, including extension cords, under carpet or rugs even temporarily as this creates a fire hazard.
• Fireplaces should be checked by a professional chimney sweep each year and cleaned if necessary to prevent a dangerous buildup of creosote, which can cause a flash fire in the chimney. Cracks in masonry chimneys should be repaired, and spark arresters inspected to ensure they are in good condition and free of debris.
• When using space heaters, keep them away from beds and bedding, curtains, paper – anything flammable. Always follow the manufacturer’s instructions for use. Space heaters should not be left unattended while in use or where a child or pet could knock them over.
• Use smoke detectors with fresh batteries unless they are hard wired to your home’s electrical system. Smoke detectors should be installed high on walls or on ceilings on every level of the home, inside each bedroom, and outside every sleeping area. Statistics show that nearly 60% of home fire fatalities occur in homes without working smoke alarms. Most municipalities require the use of working smoke detectors in both single and multi-family residences.
• Children should not have access to or be allowed to play with matches, lighters or candles. Flammable materials such as gasoline, kerosene, or propane should always be stored outside of and away from the house.
• Kitchen fires know no season. According to the U.S. National Fire Protection Association, cooking is the leading cause of house fires. Grease spills, items left unattended on the stove or in the oven, and food left in toasters or toaster ovens can catch fire quickly. Don’t wear loose fitting clothing, especially with long sleeves, around the stove. Turn the handles of pots and pans away from the front of the stove to prevent accidental contact. Keep an all-purpose fire extinguisher within easy reach. Extinguishers specifically formulated for grease and cooking fuel fires are widely available and can supplement an all-purpose extinguisher.
• Have an escape plan. This is one of the most important measures to prevent death in a fire. Visit ready.gov for detailed information on how to make a plan. Local fire departments can also provide recommendations on escape planning and preparedness. In addition, all family members should know how to dial 911 in case of a fire or other emergency.
• Kim Duclos
• www.callkim.net
  

 

HOME IS POSSIBLE!

I just wanted to remind you that the 4% down payment assistance from Home is Possible is no longer available on FHA! (boooo!) but we HAVE 2% and 3% on FHA which is STILL a WINNER!

REMEMBER the 5% Home is Possible on Conventional is still available! ( HOORAY!!!)
If you have any questions or need to see if someone qualifies for either let me know!

 

Kim Duclos crs

702.521.3939

 

www.callkim.net

 



 

HAVE YOU BEEN CONFUSED WITH ALL OF THE ANRONYMS USED in TODAY'S WORLD?

...especially in our world of texting and computers

 lol, byw...it can be overwhelming. 

To help when it comes to real estate I have listed a few

of the most common when going through the loan process.

As always, please call with your real estate questions!

702.521.3939

Kim Duclos Realtor® CRS GRI ABR
Elite Realty
8625 S. Eastern Ave.
Las Vegas, NV  89123

(702) 521-3939 cell / duclos24@aol.com   Follow, Friend or Link me: Search Kim Duclos

Recently released data from Fannie Mae’s National Housing Survey revealed that rising home prices were the catalyst behind an eight-point jump in the net percentage of respondents who say now is a good time to sell. The index is now 21 points higher than it was this time last year.
Overall, 62% of Americans surveyed said that now is a good time to sell (up from 58%), while

26% of respondents said that now is not a good time to sell (down from 30%). The net score is the difference between the two percentages, or 36%.
According to CoreLogic, home prices are now up 6.7% over last year and 78.8% of homeowners with a mortgage in the US now have significant equity (defined as 20% or more).
As home prices have increased, more and more homeowners have realized that now is a good time to sell their homes in order to take advantage of the extra equity they now have.
At the same time, however, rising prices have had the exact opposite impact on the good-time-to-buy scale as many buyers are nervous that they will not be able to afford a home; the net score dropped 5 points to 18%.
Doug Duncan, Vice President & Chief Economist at Fannie Mae, had this to say,

“In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment by a significant margin. The reverse is true today.
The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”

Buyer demand continues to outpace the supply of homes for sale, which has driven prices up across the country. Until the supply starts to better match demand, there will be a gap between the sentiments surrounding buying and selling.

Bottom Line

If you are considering listing your home for sale this year, now is the time!

 

Give me a call and we will create a plan of action for your next move!

 

Kim Duclos Realtor

Contemplating a refinance?

You have your reasons for contemplating a refinance on your home mortgage, the basic question to ask is: “Do you plan to live in the home long enough to recapture the cost of refinancing?” There are always expenses involved in refinancing which can be paid in cash or rolled into the new mortgage. From a strictly financial standpoint, the break-even point is achieved when the cost of refinancing has been recaptured by the monthly savings. It would take approximately 23 months to recapture $4,000 of refinance costs with a lower payment of $175 a month. Lower the rate Shorten the term so that the loan will build equity faster and be paid off sooner. Lower your payment to reduce your monthly cost of housing. Convert an ARM to a FRM to stabilize your payment due to concern of rising interest rates. Cash out equity to be able to use the money for another purpose. Combine a first and second mortgage. Consolidate personal debt so the interest is tax deductible. Payoff higher cost debt such as credit cards, student debt, etc. Remove a person from a loan as in the case of a divorce. Points paid to purchase a principal residence are tax deductible completely in the year paid. However, the points must be spread over the life of the mortgage on a refinance. For that reason, consider getting a “par” value loan with no points. It may have a slightly higher rate but the interest will be fully deductible and it will lower the cost of refinancing. Determine the break-even point It is best to speak with a reputable lender.  Please call for a recommendation of a trusted mortgage professional. I work with some stellar lenders and I would be happy to get the ball rolling to see what makes sense for you.  Who knows, perhaps a move is in your future when the time is right and please note, I am ready to work. Kim Duclos crs abr gri 702.521-3939 please visit www.callkim.net today!

The holidays can feel like a never ending non-stop RUSH. And while that's much of what makes the season such a joy, it's also why it's important to guard against mishaps that commonly crop up during the hustle. Here are a few key safety tips to keep in mind:


Don't fall while decorating. Do you go all out, like Clark Griswold, when stringing lights? Each season, nearly 6,000 people visit emergency rooms after falling while hanging holiday decor. (More than half of those falls occurred outdoors from roofs or ladders.) Unwieldy extension cords can also trip up individuals and lead to injuries. I have a neighbor that wears a bike helmet to avoid a head injury in case she falls while stringing lights!


Keep clear of flames. Home fires spike around the holidays, with candles, cooking and Christmas trees being common culprits. Keep decorations away from heat sources, don't leave burning candles unattended, check that electrical cords are in good condition and stay in the kitchen while cooking.  and..... be careful with space heaters and fire pits too.


Identify and remove toxins. Plants can add a festive touch to your home, but some seasonal favorites can also pose a threat to children and pets. The leaves and berries of mistletoe, for instance, are toxic if eaten, and poinsettias can irritate skin. If you choose to decorate with these plants, keep them safely out of reach and promptly clean up fallen berries and leaves.


Travel safely. Vehicles riddle the roadways at this time of year, so safety is a big concern. Take your car in for winter maintenance, check the weather forecast before road trips, stash a well-stocked emergency kit in the trunk, and keep shopping bags out of sight to avoid break-ins.  If traveling into colder weather from mild weather like our SUNNY LAS VEGAS families traveling to Denver (brrrr!), bring appropriate clothing in case your end up being stuck in snow/and in your car.  Carry glove, boots, blankets etc...


Use these and other safety tips to keep you and your loved ones happy and healthy through the holiday season.


Call me for your real estate needs and questions.
visit www.callkim.net for your online home shopping spree.

Kim Duclos

702-521-3939

What does an Interest Rate Increase Mean for You?

Although the interest rate you will

"most likely" obtain on a 

home purchase in today's market, will be 
lower than what is noted here below,

you can easily see by the scenarios offered 

what a 1% difference means to you with

your home purchase and payment.

DO NOT WAIT ANY LONGER

Call today to begin the process of home

ownership and loan qualification.  Please note

there are funds still available for the 

*FREE 4% for down payment and 

closing cost assistance program =

"Home is Possible" Grant Program.

*certain restrictions apply please call for information. 

Thank you,

Kim Duclos

Elite Realty

702.521.3939

www.callkim.net

FHA General Guidelines for Appraisals

FHA General Guidelines for Appraisal  

*******POWER AND WATER MUST BE ON AT TIME OF INSPECTION****

• Earthquake straps AKA (Seismic Straps)
• Missing handrails-Need to be Replaced
• Cracked or damaged exit doors that are otherwise operable
• Cracked window glass
• Defective paint surfaces (Peeling Paint)
• Minor plumbing leaks (such as leaky faucets)
• Defective floor finish or covering (worn through the finish, badly soiled carpeting)
• Rotten or worn out counter tops
• Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978
• Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)
• Crawl space with debris and trash
• Smoke alarms
• The electrical box should not have any frayed or exposed wires.
• All habitable rooms must have a functioning heat source
• The roofing must keep moisture out.
• The roofing must be expected to last for at least two more years.
• The appraiser must inspect the attic for evidence of possible roof problems.
• The roof cannot have more than three layers of roofing.
• If the inspection reveals the need for roof repairs and the roof already has three or more layers of roofing, the FHA requires a new roof.
• Door between the garage and the home must be fireproof.

Property Access
The property must provide safe and adequate access for pedestrians and vehicles, and the street must have an all-weather surface so that emergency vehicles can access the property under any weather conditions.

Structural Soundness
Any defective structural conditions and any other conditions that could lead to future structural damage must be remedied before the property can be sold. These include defective construction, excessive dampness, leakage, decay, termite damage and continuing settlement.

Asbestos
If an area of the home contains asbestos that appears to be damaged or deteriorating, the FHA requires further inspection by an asbestos professional.

Bathrooms
The home must have a toilet, sink and shower. (This might sound silly, but you'd be surprised what people will take with them when they're foreclosed on.)

Appliances

FHA requires properties to have working kitchen appliances, particularly a working stove. However, FHA documents do not mention any requirements regarding appliances.

 

Swimming Pools

Swimming pools must be operational to provide Contributory Value. The appraiser must report readily observable defects in a non-covered pool that would render the pool inoperable or unusable. If the pool water contains algae and is aesthetically unappealing, The appraiser must require that pools with unstable sides or structural issues be repaired or permanently filled in accordance with local guidelines, and the surrounding land re-graded if necessary.

 

 

Converted Garage-Non-permitted additions

Often non-permitted additions and remodels are not finished to code. Not only may FHA require that these items be brought to code, but if FHA decides to approve the loan without that requirement, FHA will not consider the value of non-permitted items in its appraisal

 

The FHA does not require the repair of cosmetic or minor defects, deferred maintenance and normal wear if they do not affect the safety, security or soundness.

Call Kim with your real estate 

questions and concerns!

                         Kim 702.521.3939

Deadline Looming on Current Tax Credit - Act Now

Tax Credit in General

For first time homebuyers, there is a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately). A first-time homebuyer is an individual who, with his or her spouse if married, has not owned any other principal residence for three years prior to the date of purchase of the new principal residence for which the credit is being claimed.

1. There are several situations in which a taxpayer cannot claim the credit:
2. The taxpayer is a nonresident alien;
3. The taxpayer purchases a home located outside the United States;
4. The taxpayer sells the home or if it stops being the taxpayer’s principal residence in the
year the taxpayer purchased the home;
5. The taxpayer receives the home, or any portion of the home, as a gift or as an inheritance;
and The taxpayer exceeds the income limits.

The Worker, Homeownership, and Business Assistance Act of 2009 extended and expanded the tax credit for first time homebuyers that had been created in 2008. The new law extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. If a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

ACT NOW! Call me and I can facilitate a home purchase or sale here in the Las Vegas Vally.

(702) 521-3939 direct (888) 949-2890 toll free http://www.callkim.net/

Kim Duclos

Coldwell Banker Wardley

kim.duclos@coldwellbanker.com

HUD TAKES ACTION

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

I was speaking with Brian Hahn of Castle & Cooke Mortgage LLC and he shared an article from HUD, one that may be of interest to you. As you know our markets across the country are flooded with bank owned homes or REO's as they are called in the industry. Las Vegas is one of the areas that has been hit the hardest, so a program like this will be of assistance in getting the foreclosed homes into new owners hands. Please review article below by Mr. Wooley date January 15, 2010.

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Kim Duclos CRS ABR GRI

Coldwell Banker Wardley

Call me: (888) 949-2890 (702) 521-3939

November 6, 2009 HOMEOWNER TAX CREDIT IS EXTENDED

First-Time Homebuyer Credit

Updated Nov. 6, 2009, to reflect new legislation

New Legislation:

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts.

The new law:
Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

General Information
Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit.

The credit: Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405, which you file with your original or amended tax return.

For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return.

IN ORDER TO KEEP THE INFORMATION POSTED HERE TODAY AS ACCURATE AS POSSIBLE, I WENT DIRECTLY TO THE GOVERNMENT WEBSITE TO OBTAIN THE INFORMATION SHARED HERE TODAY. http://www.irs.gov/newsroom/article/0,,id=204671,00.html

KIM DUCLOS COLDWELL BANKER WARDLEY LAS VEGAS, NV http://www.callkim.net/

CLARIFICATION OF THE NEW RESPA ACT

Are you in the market for a new home? Thinking of obtaining a mortage on that purchase? It is imperitive to work with a lender that can accomplish your goals while providing the best and honest service with competitive rates. Call me and we can get the process started! Some new changes in Lending provided below.

http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

Recent changes in the Truth in Lending laws as of 7/30/09

CLARIFICATION OF NEW RESPA ACT

Changes to the Truth in Lending Act: What You Need to Know!
Regulation Z of The Truth in Lending Act (TILA) has undergone important changes that you need to know about in order to set expectations when looking for a loan. These changes take effect for all new applications taken on July 30, 2009 and after, apply to ALL types of mortgage loans (except investor loans and HELOC's) and could impact the overall time line of the mortgage process.

Here are four key parts you need to know:

Initial Disclosures: Under the new rules, initial disclosures must be provided to the borrower for all loans within three (3) business days of when an application is taken.

Initial disclosures include: the Good Faith Estimate (GFE), Truth in Lending Statement (TIL).
Collection of Up-front Fees: The new regulations prohibit lenders from ordering and collecting many up-front fees (ie: appraisal) prior to the new waiting period.

If the loan application is face-to-face, there is no waiting period.

Otherwise lenders have a 3 day waiting period before fee services can be ordered.

TBD properties: Are not considered actual applications per RESPA - once a property is identified and application is made - the waiting period would start from that day. So, if we did a pre-qual for someone today and a week later the property is identified, the disclosures would need to be signed and/or mailed on that day, and the waiting period begins.

Re-disclosures: If there are changes to a borrower's Annual Percentage Rate (APR) that INCREASES more than .125%, the lender must re-disclose to the borrower, and the 3 day waiting period starts over again.

Timing of Loan Closings: Business days are considered Monday-Saturday excluding legal public holidays. Closings cannot be scheduled until at least seven (7) business days after the initial disclosures are received by the borrower. If re-disclosures are needed because of changes to the loan program, terms or APR, the loan closing cannot be scheduled until after the re-disclosures are received by the borrower.

Please contact me for all of your real estate needs @ (702) 521-3939

Kim Duclos - Coldwell Banker Wardley

Pending Homes Sales are up for 5th Straight Month

QUESTIONS ON TODAY'S MARKET ACTIVITY? Follow me!

August 5, 2009-

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.
Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. ”Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
The Pending Home Sales Index in the Northeast rose 0.4% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% below June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600.
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
For more information, visit http://www.realtor.org/.

RISMEDIA

Law Gives Tenants of Foreclosed Properties an Additional 60 Days to Vacate

BROUGHT TO YOU BY KIM DUCLOS OF COLDWELL BANKER WARDLEY
Real Estate Agents that represent buyers who are purchasing homes through foreclosure auctions should be aware that effective July 1, 2009, Assembly Bill 452 has taken affect. It will change NRS 40.255. Attached is the bill: http://www.leg.state.nv.us/75th2009/Bills/AB/AB452.pdf#xml=http://search.leg.state.nv.us/isysquery/irleb65/1/hilite
This gives tenants of foreclosed properties an additional 60-days or more to vacate the property from the date of the "notice of the change of ownership" is received by the tenant. If you represent buyers who plan to move into these properties, you should make sure the property that was foreclosed on has already been vacated by tenants and the current owner has served the proper notices to the appropriate parties.

Please call me with all of your real estate questions or concerns. (888) 949-2890
Kim Duclos Coldwell Banker Wardley - http://www.callkim.net/

The Nation's Housing Lawmakers Move To Expand Buyer Credit

By Kenneth R. Harney

If first-time buyers are getting thousands of dollars in tax credits from the federal government to stimulate the economy, why shouldn't all home buyers get equal treatment? And what about refinancers? Couldn't they make good use of a tax credit to help defray closing costs and loan fees?

Whatever your thoughts on these questions, there is an effort getting underway in Congress to extend tax credits to anyone who buys a new or existing home in the coming year, with no income limitations. In one case, legislation would even create a new "temporary" $3,000 tax credit to help defray the costs of refinancing mortgages on principal residences.

Two Dallas-area members of Congress, a Democrat and a Republican, have introduced bills that not only would broaden the reach of the current housing tax credits to almost everybody, but would also keep the program going until either mid-2010 or the end of that year. The current credit expires Nov. 30.

Rep. Kenny Marchant, a Republican who represents suburbs between Fort Worth and Dallas, is pushing a bill that would expand the current $8,000 federal credit to buyers of all houses, not just first-timers, through June 2010. The bill (H.R. 2619) would also create an unprecedented $3,000 credit to help offset "qualified refinancing costs" -- closing fees, lender charges and the like -- through next June.

In a statement, Marchant said his goals are to boost sales, reduce inventory and stabilize prices. The refinancing credit, he said, is designed to encourage owners "to take advantage of current low mortgage rates" and cut their monthly payments to stay out of financial trouble. The $3,000 refi credit could be used to pay for loan "points" or other transaction fees or to "put equity in their home if they're a little underwater."

Marchant's colleague Rep. Eddie Bernice Johnson, a Democrat who represents downtown Dallas, has introduced the Home Buying Credit Expansion Act (H.R. 2606), which would extend the current credit through Dec. 31, 2010. The bill would also open the credit to all buyers of principal residences but would not provide any new tax incentives to stimulate refinancings.

The near-simultaneous introduction of tax-credit-expansion bills appeared to put the two most potent housing lobbies -- the National Association of Realtors and the National Association of Home Builders -- into a political quandary. On the one hand, any broadening of tax incentives for home buying would be good news for their builder and realty broker members.
On the other hand, any public perception that the expiration date for the current credit might be extended could cause some potential buyers to delay purchases. And if all would-be buyers might be eligible for some future federal tax credit -- not just first-timers -- large numbers of consumers might just stay on the sidelines, waiting for that better deal to come out of Congress.
The National Association of Home Builders "does not want anything that would stop the traction the current credit is now getting," a spokesman said. "We think it would be more appropriate to address [an extension or other changes] closer to the credit deadline" in the months ahead.
But Mary Trupo, public policy director for the National Association of Realtors, said her 1.1-million-member group sees it differently.

"We say: If it is working for first-time home buyers, then why not for all buyers, with no income limitations? We would like to see the expiration date extended. Expanding the credit is really the way to stabilize the market -- by making it available to everybody."

Trupo said that first-time buyers accounted for one-half of all purchasers in March -- up from one-third in January -- and that increase is directly attributable to the tax credit.
The association has no hard estimate of what effect expanding the credit to all buyers would have on total sales. But Jed Smith, managing director for quantitative research, said earlier projections about the first-time-buyer credit ranged into the hundreds of thousands of additional sales. Broadening the credit to all buyers would almost certainly push the total higher.
Where is this all headed? Don't look for any immediate action on Capitol Hill. The legislative calendar is jammed already, the budget deficit is at all-time levels, the summer recess looms, and neither of the tax credit bill sponsors sits on the Ways and Means Committee, which must originate all tax legislation.

But later this year, you can bank on it: There will be a significant push to extend the housing tax credit -- and maybe even open it up to everybody.