SHOPPING FOR HOMES IS JUST A BLOG AWAY

It is December 3^rd and the rush is on!  You are no doubt in the midst of shopping, baking, attending holiday gatherings and dealing with the normal mayhem that accompanies the holiday season.  So are any of you actually done?  You are decorated, wrapped, gifts under the tree, and cookies in tins ready for consumption and distribution?  If so, congratulations!  You should consider writing a blog on organization!  You very well be the only people who have time to check out a new feature on my blog, unless, of course, you are considering buying someone a home as a Christmas gift, in which case I am providing the perfect solution right in the St. Nick of time!

You can now search the entire MLS for homes for sale right here on my blog.  Just go to the “Search All MLS Listings Here” tab (creative title, isn’t it?), click the link and you are on your way.  Check it out and let me know what you think.  BTW – if you are giving a house as a gift, with everybody going green these days, I don’t think you even have to wrap it.

Whatever you are doing this weekend, try to stay calm, set realistic goals, and understand there is only so much you can and should even try to accomplish as the big day approaches.  Take time to breathe and take in the joy this season should bring, whatever that is for you.  That’s my take on it, and I hope that is a good take away for you.   

CLASSIC TOWNS, CLASSIC CHRISTMAS

After yesterday’s posting about the rise in mortgage foreclosures, I thought we needed a more light-hearted focus today.  What better way to get into the holiday spirit than to check out the many seasonal events happening in Souderton and Telford this weekend.  Souderton-Telford Main Streets and area businesses have planned a great weekend, starting with the theme, Classic Towns, Classic Christmas.  Last year Souderton and Telford were added to the list of Classic Towns of Greater Philadelphia (more on that in a future posting).  Kicking off the activities is the lighting of Telford’s Community Christmas Tree on Friday, December 3 at 7:00.  The tree is located in the municipal parking lot at Main Street and Penn Avenue.  Preceding the tree lighting a group of carolers will stroll from Grace United Methodist Church on Main Street to the pavilion next to the tree where they will join students from EMC Elementary for more songs of the season.  

The 52^nd Annual Souderton Holiday Parade starts at 11:00 AM on Saturday, December 4.  As in past years, the parade route will be from Main Street to Broad Street and ending at School Lane.  The parade announcers are Jim Church and Bruce Kenworthy who will be located at the intersection of Main and Broad.  Jim has been the voice of the Indian Valley for decades, and when a microphone is in his hand, no one is safe.  Keep him in line, Bruce!

Adding to the excitement is a new participant this year – Radio Disney.  Not only will Radio Disney be in the parade, but afterwards will be in the pavilion in Souderton Park from about 2:00 to 3:30 with music, games, and prizes for kids and parents.  Church groups will be singing Christmas carols in the park after the parade as well.  Don’t miss the bake sale to benefit Souderton’s new pool currently under construction – it won’t be cold forever!

After finishing up his parade run, Santa Claus will be at the Scout Cabin next to the park from 2:00 to 4:00, seated by the fireplace and ready to hear all the children’s wishes.  Be sure to bring your camera!  The Scouts and North Penn Goodwill will be selling Christmas trees, as is their long-standing tradition.

This certainly sounds like a classic Christmas celebration to me!  A big THANK YOU to everyone who made these free, family-oriented festivities possible.  Merry Christmas to all and to all a good time!  That’s my take on it.

FORECLOSURES ARE ON THE RISE. DO OWNERS HAVE OPTIONS?

An article in The Reporter on November 22, 2010 offered the following sobering statistics about home foreclosures:

Montgomery County foreclosures skyrocket

“Home foreclosures in Montgomery County have more than doubled in the past 10 years. In 2000, 1,054 residential foreclosures were processed in the county. By the end of 2011, Montgomery County officials expect to process at least 2,600 foreclosures. The county is averaging 10.74 foreclosures a day, and with the foreclosure filings comes an unexpected source of revenue. There are three parts to a home foreclosure filing, and each has fees attached to the process. The first step is the Complaint of Mortgage Foreclosure that carries a $251 filing fee. If a settlement is not reached, the next filing would be a judgment for the amount owed, with a fee of $14.75. If the judgment is not satisfied, the final fee of $25.25 would be to file a Writ of Execution for the property to go to Sheriff’s sale. If the expected 2,642 foreclosures are finalized this year, the county will receive approximately $660,632 in revenue.”

While it is interesting to learn that the County is experiencing a new stream of revenue, the source of that revenue is alarming.  While foreclosures are already on the rise, economists are warning us about the “shadow inventory” that exists across the country.  This refers to homes that are not yet in foreclosure, but are on the verge of being in that category.  Economists tell us the size of the shadow inventory is significant.  Do homeowners who can no longer keep up with their mortgage payments, and live in a home that may be worth less than they paid for it, have options?  Using the two favorite words of attorneys, it depends.  A qualified professional can provide counsel as to whether or not an owner is a candidate for a short sale.

 A short sale involves the sale of a property for an amount less than what is owed on the mortgage and other recorded encumbrances.  Typically, a short sale is only possible when the lender is willing to accept less than what is owed in exchange for a release of its mortgage.  Lenders and other creditors may be willing to do this rather than going through with a foreclosure as a short sale may take less time, net the lender as much money as they anticipate in a foreclosure, and the process is less complicated.  It is important to note that the lender may still elect to hold their borrower responsible for the shortfall.  If you considering a short sale, I cannot stress enough the importance of engaging the services of a qualified Realtor and attorney as soon as possible to determine if a short sale is a viable option for you.  

THE GOVERNMENT WILL STILL HELP YOU BUY A HOME!

Think the end of the tax credit means the end of government support for first-time homebuyers?  Think again!  The government has supported first-time buyers for decades.  With interest rates at historic lows and lots of Sellers competing for your attention, this is the perfect time to look into ways the government can help you get into your first home.  A home is not only a great long-term investment, it also represents security for your family and a great tax deduction as well.  It also can be available for a government subsidy.

The Mortgage Subsidy Bond Tax Act of 1980 allows state and local housing finance agencies to issue tax-exempt Mortgage Revenue Bonds (MRBs) in order to finance mortgage loans.  MRB proceeds are used to purchase or originate mortgage loans at below market rates!  The interest-rate savings of these mortgages will vary, but a 1% reduction on the interest rate could lower the payment on a $200,000.00 home by approximately $120.00 per month!

Qualification standards for mortgages financed through these bonds vary from program to program.  The following represent typical requirements to be eligible for this type of financing:

            Your household income cannot exceed 115% of area median family income.

            The price of the home purchased with an MRB-financed mortgage may not be greater

            than 90% of the average price of homes in that area.

            You must not have owned a home in the previous three years.

            The purchase must be of a primary residence.

If this sounds like you, it is time to get in the game!  The rates we have today will not be available forever.  Once gone, we may never see such low rates again.  If this type of loan is not the right fit for you, there are other very advantageous programs that will help you get into a home.  Get in touch with me and we’ll get you in touch with a mortgage that will get you in a home!  

GIVE YOURSELF AND YOUR HOME A CHRISTMAS PRESENT!

The countdown to Christmas is on (and I won’t add to your stress by mentioning how many shopping days are left before December 25^th!).

While you are busily making holiday preparations, I will remind you there is another countdown underway.  Homeowners have until the end of 2010 to complete certain energy-related improvements to their homes to be able to cash in on the tax credits available for doing this type of work.  Be sure to check with your CPA for particulars about what is included in this program, and what is not.

Here are a few details you should understand if you want to give yourself and your house a holiday bonus:

A tax credit is available in the amount of 30% of the cost of qualifying improvements up to a maximum credit of $1,500.00.  If you replace windows for example, and the cost is $5,000.00, you will have reached the maximum credit of $1,500.00 ($5,000.00 x 30% = $1,500.00).  You can spend more on your improvement projects, of course, but the tax credit is maxed out at $1,500.00.  If you have already done work on your home this year, pull your receipts and see if you qualify!  Examples include heating, ventilating, and air conditioning, insulation, roofs (metal and asphalt), water heaters (non-solar), windows and doors, etc.  You can use multiple jobs to reach the maximum, but the maximum credit is $1,500.00 no matter how many projects you complete.  This program applies to your primary residence only.

If you are planning to do this type of work anyway, you would be wise to finish the work this year and let the government “pay” for part of the job.  Good luck, and if you need the name of an excellent contractor for any of the work listed above or beyond, let me know.  I work with the best!

NATIONAL REAL ESTATE SALES REPORT

The following is a brief excerpt from a press conference with Lawerence Yun, Chief Economist for the National Association of Realtors.  Check back for sales activity reports specific to Montgomery and Bucks Counties.

Sales Decline Following Two Monthly Gains Existing-home sales retreated in October on the heels of two strong monthly gains, according to the National Association of Realtors.   Existing-home sales declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98 million-unit level in October 2009, when sales were surging prior to the initial deadline for the first-time buyer tax credit. "The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales," says NAR Chief Economist Lawrence Yun. "Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels.”

Thanksgiving musings…

Thanksgiving is not quite over, but there are thousands already shopping in the pre-Black Friday hours.  It is my hope that the day that preceded Black Friday was a happy and blessed one for you.  For the first 50 years of my life, Thanksgiving meant gathering with my family and relatives at Uncle Albert and Aunt Myrtle’s house in Leesport, PA.  This was for me, the tradition I enjoyed above all others.  It became the Thanksgiving tradition for my children as well.  Life is, of course, finite, and traditions are subject to the frailties of the humans who live them.  Sadly, my Uncle Albert died on New Year’s Eve a few years ago.  My sister and brother-in-law now host smaller Thanksgiving gatherings at their home in Cape May Court House, NJ.  A new tradition is underway.

As the grandchildren gathered around my father for the annual Thanksgiving picture, I was thankful for my father being able to be there, knowing that there are no guaranties as to how many more of those pictures with Grandpop will be possible.  My family’s traditions, of necessity, will continue to evolve, as will yours.  Knowing that, we are well-advised to be fully present during Thanksgiving and other family events taking complete advantage of the time we have together.  Of course, we need to be open to changes in traditions that will inevitably come.  Wishing you the blessings of familiar family traditions, as well as new customs yet to be experienced.  Happy Thanksgiving…