Realty Reality: December 2008

Wednesday, December 31, 2008

Appellate Division Rules on Public Access

On December 11, 2008, the Appellate Division of the Superior Court of New Jersey, in Bubis v. Kassin ruled that Public Access rules apply to portions of beaches below the mean high tide line when bordering private property. The court also ruled that portions of beaches above the mean high tide line are considered private property and as such, not subject to public access rules.

Source: NJAR

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Celebrate: The New Year 2009!

We hope you have a great new year no matter how and when you celebrate it!

Here are a few links about how the start of a New (calendar) Year is celebrated in the U.S. and around the world and some related information we hope you find interesting...

Wikipedia - New Year's Day

Wikipedia - Auld Lang Syne

So What's Auld Lang Syne?

Auld Lang Syne

History Traditions and Customs

World Book - The New Year

Times Square - New Year's Eve

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Media Advisory: Downpayment Clarification

There is some misinformation in the media lately about the required size of a down payment for a mortgage in today’s market, and the blog world is abuzz with misperceptions. Not all so-called experts are knowledgeable in this area, and some experts are being misunderstood.

The facts:

- An individual may be required to put down 20 percent based on that person’s financial situation. But that is not an across-the-board requirement for all borrowers.

- A borrower who puts down less than 20 percent is required to obtain mortgage insurance.

- Even in a declining market, a borrower is required to make at least a 5 or 10 percent down payment.

- FHA requires a 3.5 percent down payment by borrowers, so long as they meet a 31 percent housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5 percent down payment (even with family help) can become a homeowner.

PLEASE NOTE: FHA market share has grown roughly tenfold in the past year to an estimated 30 percent of new mortgage originations.

The National Association of Realtors® (NAR), “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Tuesday, December 30, 2008

Current Loan Limits & FHASecure to Expire

The current loan limits for Freddie Mac, Fannie Mae, and the Federal Housing Administration (FHA) that were part of the economic stimulus package are due to expire on December 31, 2008.

On January 1, 2009, lower permanent loan limits enacted by Congress in July 2008 will become effective. For Freddie Mac and Fannie Mae, the maximum limit will drop from $729,000 in 2008 to $625,000 in 2009; the limits will not go below $417,000.

For FHA, the maximum limits will also drop from $729,000 to $625,000 while the minimum loan limits will not go below $271,050. As a result, loan limits will be recalculated in each county and metro area. View the loan limits for 2008 and 2009.

The FHASecure mortgage refinance program will also expire on December 31, 2008.The Hope for Homeowners program is available to offer refinance options for borrowers seeking assistance to avoid foreclosure.

Source: NJAR

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Monday, December 29, 2008

Revised Home Valuation Code of Conduct Available

A revised version of the Home Valuation Code of Conduct, an agreement between New York Attorney General Andrew Cuomo and Fannie Mae and Freddie Mac, has been released. The agreement will be effective May 1, 2009.

The revised Home Valuation Code of Conduct is available online.

Read Attorney General Cuomo's statement on the agreement.

See also previous article: Home Valuation Code of Conduct To Take Effect in 2009

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Sunday, December 28, 2008

Changing Tastes of Tomorrow's Buyers

Trends from past decades hint that the impact of current market conditions may change preferences for future home buyers. Read more for trends of tomorrow’s home buyer. (Elizabeth Razzi, December 28, 2008, Washingtonpost.com)

More Information . . .

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Friday, December 26, 2008

Home For The (Safe) Holidays

The Home Safety Council (HSC) is providing online safety tips for keeping your family safe while decorating and hosting guests during the holidays...

Deck the Halls Safely:

Tips to keep your family safe while decorating for the holidays.

>> Holiday Lights
>> Candle Safety
>> Ladder Safety

Tips to keep your family safe while hosting guests.

>> Prepare for Guests
>> Cooking Safety
>> Child Safety
>> Visit MySafeHome.org

Wednesday, December 24, 2008

Merry Christmas and Happy Holidays 2008!

Hoping you and your family have a warm, wonderful, Merry Christmas and Happy Holidays!

The Christmas season holds special meaning unique to each one of us.

Here are links to resources we have provided in previous articles celebrating from different persepctives the meanings, traditions, literature, music, food, fun, faith and family gatherings associated with this time of the year. Enjoy!

Christmas Holiday Music On The Internet
Merry Christmas and Happy Holidays!
Celebrate: The Christmas Holiday Season
The Holiday Season - Christmas Carols and Songs
Filling Your Home With Winter Cheer - Part 1 of 3
Filling Your Home With Winter Cheer - Part 2 of 3
Filling Your Home With Winter Cheer - Part 3 of 3
Christmas Holiday Fun

Near Record Low Mortgage Rates Boost Mortgage Applications

WASHINGTON, D.C. (December 24, 2008) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 19, 2008. The Market Composite Index, a measure of mortgage loan application volume increased 48.0 percent on a seasonally adjusted basis from one week earlier.

On an unadjusted basis, the Index increased 50.2 percent compared with the previous week and was up 124.6 percent compared with the same week one year earlier.

The refinance share of mortgage activity increased to 83.2 percent of total applications from 76.9 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.18 percent, with points increasing to 1.17 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The contract rate for 30-year fixed-rate mortgages is the lowest recorded in the survey since the record low of 4.99 percent for the week ending June 13, 2003.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.91 percent from 4.93 percent, with points decreasing to 1.03 from 1.34 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 6.36 percent from 6.63 percent, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80 percent LTV loans. (Source: MBA press release)

More details...

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Tuesday, December 23, 2008

Existing-Home Sales Decline in Economic Uncertainty

Existing-home sales weakened against a backdrop of an eroding economy, according to the National Association of Realtors®(NAR).

Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 8.6 percent to a seasonally adjusted annual rate¹ of 4.49 million units in November from a downwardly revised level of 4.91 million in October, and are 10.6 percent below the 5.02 million-unit pace in November 2007.

Lawrence Yun, NAR chief economist, expected a decline. “The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level. We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001,” he said.

“It is, therefore, imperative to provide incentives for homebuyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit,” Yun said. Watch a video of Lawrence Yun providing commentary on the data..

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.09 percent in November from 6.20 percent in October; the rate was 6.21 percent in November 2007. Last week, Freddie Mac reported the 30-year rate fell to 5.19 percent – the lowest on record since the series began in 1971.

NAR President Charles McMillan said it’s crucial to enact sufficient housing stimulus to spark an economic recovery. “We need more than low interest rates to encourage enough buyers to enter the market and meaningfully draw down inventory, which would stabilize home prices – that, in turn, would help the economy to recover,” he said.

“We should extend the first-time buyer tax credit to all homebuyers and eliminate the repayment feature, and make permanent the higher loan limits that are vital in high-cost markets – the faster we do this, the faster housing and the economy can recover,” McMillan said.

McMillan said NAR is grateful that the Treasury, the Federal Housing Finance Agency and the Federal Reserve have been working to bring interest rates down on most mortgages to historic lows.

Total housing inventory at the end of November rose 0.1 percent to 4.20 million existing homes available for sale, which represents an 11.2-month supply² at the current sales pace, up from a 10.3-month supply in October.

Despite an overall softening in sales, there has been a solid trend of rising activity in California, Nevada, Arizona and Florida markets. “Sales are rising only in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” Yun said.

The national median existing-home price³ for all housing types was $181,300 in November, down 13.2 percent from November 2007 when the median was $208,800. There remains a significant downward distortion in the current price from a large number of distress sales at discounted prices; the median is where half of the homes sold for more and half sold for less.

Yun cautioned that there will be negative consequences if housing stimulus is delayed. “Falling home prices would lead to faster contraction in consumer spending and further deterioration in bank balance sheets. More importantly, falling home values would lead to higher loan defaults, including those recently modified distressed mortgages.”

Single-family home sales fell 8.0 percent to a seasonally adjusted annual rate of 4.02 million in November from a level of 4.37 million in October, and are 8.8 percent below a 4.41 million-unit pace a year ago. The median existing single-family home price was $180,800 in November, down 12.8 percent from November 2007.

Existing condominium and co-op sales dropped 13.0 percent to a seasonally adjusted annual rate of 470,000 units in November from 540,000 in October, and are 23.1 percent below the 611,000-unit pace in November 2007. The median existing condo price4 was $185,400 in November, down 15.5 percent from a year ago.

Regionally, existing-home sales in the Northeast dropped 12.0 percent to an annual pace of 730,000 in November, and are 18.0 percent lower than a year ago. The median price in the Northeast was $257,700, down 0.1percent from November 2007.

Existing-home sales in the Midwest fell 7.4 percent in November to a pace of 1.00 million and are 16.0 percent below November 2007. The median price in the Midwest was $142,400, down 11.2 percent from a year ago.

In the South, existing-home sales dropped 10.9 percent to an annual pace of 1.64 million in November, and are 17.6 percent below a year ago. The median price in the South was $154,500, which is 10.6 percent lower than November 2007.

Existing-home sales in the West declined 4.3 percent to an annual rate of 1.12 million in November but are 17.9 percent higher than November 2007. The median price in the West was $242,500, down 25.5 percent from a year ago.

# # #

NOTE: References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information.

1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases.

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for December will be released January 26, and the next Pending Home Sales Index & Forecast is scheduled for release January 6; release times are 10 a.m. EST.

For more information, please visit: http://www.realtor.org/research/research/ehsdata

Watch a video of Lawrence Yun providing commentary on yesterday's data.

Thursday, December 18, 2008

Comprehensive IRS Tax Guide Available Free Online

WASHINGTON — The IRS has placed its comprehensive tax guide for individuals on IRS.gov, updating it for tax year 2008. The updated on-line version of IRS Publication 17, “Your Federal Income Tax,” contains more than 900 interactive links.

Publication 17 has been updated with important changes for 2008, including information on the new recovery rebate credit, new first-time-homebuyer credit, and an additional standard deduction for real estate taxes. It has been published annually by the IRS for more than 65 years and has been available on the IRS Web site since 1996.

As in prior years, the publication provides information on how to file an individual tax return, what to include as income, how to calculate capital gains and losses, how IRAs and other expenses can affect how much income to report, whether to take the standard deduction or itemize, and how to figure taxes and credits.

Publication 17 is available on line, however, those who do not have access to the Internet can call 1-800-829-3676 to request a free copy from the IRS. Printed copies will be available in January 2009.

Source: IR-2008-142

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Wednesday, December 17, 2008

Commercial Real Estate Outlook Dampened

With the exception of cash transactions, investment activity in commercial real estate sectors is nearly at a standstill because commercial lending has essentially halted, while job losses are curtailing the demand for space, according to the latest COMMERCIAL REAL ESTATE OUTLOOK* of the National Association of Realtors®(NAR).

Lawrence Yun, NAR chief economist, said there are serious structural problems in commercial lending. “Although access to residential mortgages has improved, the opposite is true for commercial loans,” he said. “We need liquidity for commercial mortgage-backed securities not only to free the market, but also to rollover existing debt. At the same time, the loss of jobs has had a significant impact on the demand for commercial space.”

Yun added that default rates on commercial real estate loans are very low by historical standards. “However, commercial defaults could deteriorate significantly without a properly structured stimulus that addresses liquidity for commercial mortgages,” he said.

Realtors® Commercial Alliance Committee chair Steven Good, president and CEO of Sheldon Good & Co. in Chicago, said market conditions are very challenging. “Given that supply and demand for commercial space varies greatly depending on location, it’s important for businesses who want to sell or lease space to consult with a Realtor® familiar with local conditions,” he said.

The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by Torto Wheaton Research.

Office Market

Office rent is likely to contract next year as erosion in the job market curtails demand for space. Vacancy rates are projected to increase to 16.4 percent in the third quarter of 2009 from 13.4 percent in the third quarter of this year. Office markets with the lowest vacancies currently include New York, Honolulu and Seattle, all with vacancy rates of 9.6 percent or less. The highest vacancies are in Detroit, Phoenix and Dallas, with vacancies exceeding 20 percent.

Annual rent in the office sector is expected to slip 0.4 percent this year and decline another 3.6 percent in 2009. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is seen at 12.3 million square feet this year before contracting by 63.0 million in 2009.

Industrial Market

The industrial sector has been holding up fairly well based on the strength of exports, but the global economic slowdown will take a toll.

Vacancy rates in the industrial sector are forecast to rise to 12.1 percent in the third quarter of 2009 from 10.7 percent in the third quarter of this year. Industrial markets with the tightest vacancies include Los Angeles, Salt Lake City and Tucson, Ariz., with vacancy rates of 6.8 percent or less. Areas with the highest vacancies include Detroit; Stamford, Conn.; and Phoenix, with vacancies of at least 15.7 percent.

Annual rent is estimated to ease down 0.8 percent this year and decline another 4.0 percent in 2009. Net absorption of industrial space in 58 markets tracked should total a negative 57.2 million square feet this year and a negative 134.9 million in 2009. Many obsolete structures remain on the market because much of the new construction has been built to suit specific needs.

Retail Market

Declines in consumer spending are impacting the retail sector. The retail vacancy rate will probably be 12.7 percent in the third quarter of 2009, up from 9.8 percent in the third quarter of this year. Retail markets with the tightest vacancies include San Francisco; Orange County, Calif.; and Honolulu, with vacancy rates of 4.5 percent or less. Markets with the highest vacancies include Detroit; Columbus, Ohio; and Fort Worth, Texas, with vacancies of 15.6 percent or higher.

Average retail rent is expected to contract 2.0 percent in 2008 and fall another 7.3 percent in 2009. Net absorption of retail space in 53 tracked markets will likely shrink by 7.3 million square feet this year and contract by another 35.7 million in 2009.

Multifamily Market

The apartment rental market – multifamily housing – continued to benefit from weak home sales.

Multifamily vacancy rates are forecast at 5.8 percent in the third quarter of 2009, unchanged from the third quarter of this year. Markets with the tightest vacancies include San Diego, Northern New Jersey and Boston, with vacancy rates of 4.2 percent or less. Areas with the highest vacancies include Jacksonville, Fla.; Phoenix; and Orlando, Fla., with vacancies of 8.5 percent or higher.

Average rent is projected to grow 2.9 percent in 2008 and 2.8 percent next year. Multifamily net absorption should be 24,400 units in 59 tracked metro areas this year and 142,000 in 2009.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the Realtors® Commercial Alliance. The RCA, formed by NAR in 1999, serves the needs of the commercial market and the commercial constituency within NAR, including commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and NAR affiliate organizations.

Organizations in the RCA include the CCIM Institute, the Institute of Real Estate Management, the Realtors® Land Institute, the Society of Industrial and Office Realtors®, and the Counselors of Real Estate. The RCA also provides commercial products and services.

More than 82,000 NAR members offer commercial services, and 60,000 of those are currently members of the RCA.

# # #

*Publication of the full report, including metropolitan data, will be posted in the Research area of Realtor.org later this week.

The next commercial real estate market forecast will be combined with the Commercial Leading Indicator index on February 19.

Tuesday, December 16, 2008

HUD Approves $777M For Medical Office Building in Hopewell Township, NJ

Deal is to contruct a 223-bed hospital and medical office building in Hopewell, Mercer County, New Jersey.

Capital Health System to replace aging Mercer Medical Center, expand Fuld Hospital.

WASHINGTON - The U.S. Department of Housing and Urban Development(HUD) today made a commitment to insure a loan to Capital Health System (CHS) in Trenton, New Jersey to construct a new 223-bed hospital in Hopewell Township, New Jersey to replace the existing Mercer Medical Center. The $777 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.

In addition, the system's Fuld Hospital will create two new medical-surgical units and provide space to accommodate services transferred from Mercer. By insuring the mortgage loan, FHA enabled Capital Health System to obtain a lower cost financing, saving the hospital an estimated $487 million in interest payments throughout the life of the loan.

"After many years of determination and planning, community leaders will finally be able to bring a new state of the art medical center to Hopewell Township." said Brian Montgomery, HUD's Assistant Secretary for Housing/Federal Housing Commissioner. "By lowering the cost of credit for Capital Health System, FHA will allow the company to use more of its resources to do what it does best - making people healthier."

"The support from HUD will enable us to bring to this region the finest healthcare facilities and most advanced medical care available," said Al Maghazehe, CEO & President of Capital Health System, who also noted that this is the largest hospital project ever to be endorsed by HUD. "We are proud that we met HUD's high financial standards for approval and are pleased to partner with them on this important project."

The CHS construction project will create 4,767 full-time jobs and provide an economic stimulus of $1.7 billion during the construction period. Once completed, the new Mercer Medical Center will support an estimated 2,209 jobs in the hospital and surrounding community, and provide an annual economic benefit of $424 million.

FHA's Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals including major equipment needed to operate the facility. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.

###

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Source: HUD No. 08-186

IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell

WASHINGTON — The Internal Revenue Service (IRS) today announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.

If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.

The process to request a discharge or a subordination of a tax lien takes approximately 30 days after the submission of the completed application, but the IRS will work to speed those requests in wake of the economic downturn.

“We don’t want the IRS to be a barrier to people saving or selling their homes. We want to raise awareness of these lien options and to speed our decision-making process so people can refinance their mortgages or sell their homes,” said Doug Shulman, IRS commissioner.

“We realize these are difficult times for many Americans,” Shulman said. “We will ensure we have the resources in place to resolve these issues quickly and homeowners can complete their transactions.”

Filing a Notice of Federal Tax Lien is a formal process by which the government makes a legal claim to property as security or payment for a tax debt. It serves as a public notice to other creditors that the government has a claim on the property.

In some cases, a federal tax lien can be made secondary to another lien, such as a lending institution’s, if the IRS determines that taking a secondary position ultimately will help with collection of the tax debt. That process is called subordination. Taxpayers or their representatives may apply for a subordination of a federal tax lien if they are refinancing or restructuring their mortgage. Without lien subordination, taxpayers may be unable to borrow funds or reduce their payments. Lending institutions generally want their lien to have priority on the home being used as collateral.

To apply for a certificate of lien subordination, people must follow directions in Publication 784, How to Prepare an Application for a Certificate of Subordination of a Federal Tax Lien. Again, there is no form but there must be a typed letter of request and certain documentation. The request should be mailed to one of 40 Collection Advisory Groups nationwide. See Publication 4235, Collection Advisory Group Addresses, for address information.

Taxpayers or their representatives may apply for a certificate of discharge of a tax lien if they are giving up ownership of the property, such as selling the property, at an amount less than the mortgage lien if the mortgage lien is senior to the tax lien. The IRS may also issue a certificate of discharge in other circumstances if the taxpayer has sufficient equity in other assets, can substitute other assets, or is able to pay the IRS its equity in the property. Without a tax lien discharge, the taxpayer may be unable to complete the home ownership change and the ownership title will remain clouded.

To apply for a tax lien discharge, applicants must follow directions in Publication 783, Instructions on How to Apply for a Certificate of Discharge of a Federal Tax Lien. There is no form but there must be a typed letter of request and certain documentation. The request should be mailed to one of 40 Collection Advisory Groups nationwide. See Publication 4235 for address information.

The IRS also urges people to contact the agency’s Collection Advisory Group early in the home sale or refinancing process so that it can begin work on their requests. People sometimes delay informing lenders of the tax liens, which only serves to delay the transaction.

Currently, there are more than 1 million federal tax liens outstanding tied to both real and personal property. The IRS issues more than 600,000 federal tax lien notices annually.

Source: IR-2008-141

Federal Reserve Cuts Rates to Lowest Level on Record

It's FOMC Cuts Rates to Lowest Level on Record

The Federal Open Market Committee (FOMC) today decided to establish a target range for the Federal Funds rate of 0% to 0.25%. This is the lowest rate in the history of the Federal Reserve, which was established 95 years ago.

In the statement announcing its decision, the FOMC said that since its last meeting "labor markets have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined.'” (Source: FOMC)

Full FOMC Press Release

Monday, December 15, 2008

Christmas Holiday Music On The Internet

For those of you that can't get enough Christmas and Holiday music, here are uupdated resources for continous radio broadcasts of Christmas and Holiday music. Some stations broadcast seasonally, others broadcast year-round.

Christmas Radio Stations - List of Christmas Music Radio Stations Live On the Internet. (This list is likely to grow as Christmas gets closer so keep checking for new additions.)

AccuHolidays - Choice of various styles of Christmas and Holiday Radio Stations from AccuRadio -- free all-Christmas-music radio station, featuring dozens of channels of holiday tunes — rock, pop, jazz, country, R&B, classical, and more.

Live365.com Internet Radio - Seasonal Holiday Music In Various Styles. Large list. (Alt. Link)

All Christmas Radio - They play requests submitted online. (They will broadcast Instrumental Music Only on Christmas Day from 12am CST - 12om CST.)

Christmas Radio Network - Broadcast All Year - 365/24/7. (Continuous Christmas Classics - Indie Artists you won't hear anywhere else! Will take request online.)

CMT Holidays - Selected Past Holiday Music, Comedy, Videos, Links. CMT Christmas Radio - Various Country Styles.

Web-Radio - Christmas Internet Radio - Directory Of Online Stations Broadcasting Christmas and Holiday Music. (Sorted by call letters, state, format, international and Internet only.)

Launchcast - Christmas & Holiday Music - Christmas and Holiday Music, Traditional and Various Styles. (Requires Yahoo username/password to access.)

Sunday, December 14, 2008

The Future of the Internet III

Experts and analysts assess the future of the internet in a new survey

Washington, December 14, 2008 – A survey of internet leaders, activists and analysts shows they expect major tech advances as the phone becomes a primary device for online access, voice-recognition improves, artificial and virtual reality become more embedded in everyday life, and the architecture of the internet itself improves.... (Source: Pew Internet & American Life Project)

Learn more

View PDF of Report

Friday, December 12, 2008

Explore Flu Trends Across the U.S.

Google Tracks Flu Trends across the U.S. using data compiled via search terms.

"There is a new common symptom of the flu, in addition to the usual aches, coughs, fevers and sore throats. Turns out a lot of ailing Americans enter phrases like “flu symptoms” into Google and other search engines before they call their doctors.

That simple act, multiplied across millions of keyboards in homes around the country, has given rise to a new early warning system for fast-spreading flu outbreaks, called Google Flu Trends."

Full NYTimes Story

Thursday, December 11, 2008

National Timeline Provided By Beige Book Archives

The following economic timeline is provided from the Federal Reserve Bank of Minneapolis referencing the Beige Book national summary archives. (It covers the period from 1970 through to 9/11/2001.)

Economic Timeline

4th Q 1969 - 4th Q 1970: Recession
August 1971: President Nixon announces wage-price controls
November 1973: OPEC moves to embargo shipments to the United States, Western Europe and Japan
4th Q 1973 - 1st Q 1975: Recession
1979: Consumer prices rise 13.3 percent, the largest increase in 33 years
October 1979: FOMC switches from targeting the federal funds to the money supply
1st Q 1980 - 3rd Q 1980: Recession
December 1980: Prime rate reaches 20.35 percent
3rd Q 1981 - 4th Q 1982: Recession
November 1982: Unemployment rate reaches 10.8 percent
October 1987: Stock Market Crash
August 1990: Iraq invades Kuwait
3rd Q 1990 - 1st Q 1991: Recession
1992: “It's the economy, stupid”
3rd Q 1993: Flooding in nine Midwestern states
December 1996: Chairman Greenspan declares “irrational exuberance” in the stock market
Summer 1997: Asian financial turmoil
March 1999: Unemployment at 4.2 percent, lowest level in 29 years
March 2001: Recession
September 11, 2001: Terrorist Attacks

Click here for blog articles summarizing recent Beige Book reports.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Wednesday, December 10, 2008

HUD Launches Comprehensive Website to Increase Financial Literacy, Promote Healthy Homeownership

My Money, My Home, My Future

The U.S. Department of Housing and Urban Development (HUD) launched a new, comprehensive Web site to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. The My Money, My Home, My Future website provides a range of interactive resources to inform users about the importance of financial literacy, including a Self-Assessment Tool, online games and informative classes.

"It is imperative that Americans are better educated about their finances and understand what it takes to be a responsible homeowner," said HUD Secretary Steve Preston. �"The resources on the website allow families to plan ahead to make smart choices about their finances and homebuying decisions."

The new site provides a wide-range of information about all avenues needed to be successful on the road to greater financial education, including:

* Building a Financial Foundation;
* Sustaining Healthy Homeownership; and
* Achieving Financial Security.

One of the most unique features of this website is the Self-Assessment Tool. The Self-Assessment Tool provides an extensive guide to help users learn more about personalized options for purchasing and/or refinancing their home. Users will be prompted to answer a few questions. Based on the answers given, the Self-Assessment Tool lists numerous links to visit on-line to learn more about the necessary and correct steps to own a home, refinance a home, enhance their financial skills, and much more.

Some of the other links on My Money, My Home, My Future�give detailed information about:

- 9 Steps to Buying a Home
- Housing Counselors and Lenders
- Banking, Credit and Building Wealth
- Foreclosure Process and Alternatives
- Refinancing Loans and FHA Insured Loans

This new site is also located on http://www.hud.gov/ and http://www.fha.gov/, both in easy to find locations on the main web pages.

Source: HUD No. 08-180

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Tuesday, December 09, 2008

Pending Home Sales Holding In Stable Range

Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors®(NAR).

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive. “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” he said. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas. ²

The PHSI in the South jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago. In the Northeast the index rose 0.6 percent to 68.1 but is 14.1 percent below October 2007. The index in the Midwest declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago. In the West, the index fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he’s hopeful about considerations by the U.S. Treasury. “Efforts to bring down mortgage interest rates demonstrate a clear understanding of the role housing plays in stabilizing the economy,” McMillan said. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”

Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery. “Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” he said.

Looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.

New-home sales for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.

“Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun said. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.”

The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6.0 percent by the end of 2009, and average 6.2 percent in 2010. NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.

The unemployment rate is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009. Inflation, as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.

# # #

¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

²Market information is from unpublished snapshot data; please contact your local association of Realtors® for more information.

Existing-home sales for November will be released December 23; the next Pending Home Sales Index will be on January 6. For more information, visit: Pending Home Sales

IRS Offers Tips for Year-End Donations

WASHINGTON — Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years.

One provision offers older owners of individual retirement arrangements (IRAs) a different way to give to charity. There are also rules designed to provide both taxpayers and the government greater certainty in determining what may be deducted as a charitable contribution.

More details...

Source: IR-2008-138

Monday, December 08, 2008

Rent to Own: Best of Both Worlds?

Some sellers uneasy with fluctuating home values and buyers facing financing issues are looking to a solution more frequently reserved for the automotive industry: rent-to-own agreements. While not a perfect option for every buyer or seller, a lease-purchase or lease-option agreement can be a viable real estate solution for many individuals.

It’s important to note that while potentially advantageous for some buyers and sellers, these types of arrangements are very complicated. Anyone considering heading down the rent-to-own path should enlist the aid of an experienced and trusted real estate attorney.

How does a rent–to-own agreement work?
Essentially, these arrangements allow the buyer to act as renter for a set period of time, with the owner serving as landlord .The buyer pays the seller option money for the right to later purchase the property. The option money generally does not apply towards the down payment on the home's purchase. The occupant typically makes total monthly rent payments that are above market rate for comparable rentals in the area, and a predetermined portion of that monthly payment is applied as a credit towards the purchase price of the home. During the lease period, the home may not be sold to any other buyer.

Lease-purchase vs. lease-option
Rent-to-own transactions are separated into two very distinct categories: lease-purchase agreements and lease-option agreements.

Lease-purchase agreement – In a lease-purchase agreement, the buyer and seller agree on a purchase price. This is typically at market value, if not slightly above. The option money may be a substantial amount, and is nonrefundable. During the lease period, the occupant is often responsible for maintaining the property. At the end of the lease period, the buyer secures bank financing in order to pay the seller the full purchase price. Again, in lease-purchase agreements the buyer is obligated to purchase the home.

Lease-option agreement – The buyer and seller may agree upon a purchase price at the time of the agreement, although in some cases the buyer may agree to pay market value at the end of the lease term (most buyers prefer to lock in the purchase price at the onset of the agreement). Lease-option agreements often require a lower option money amount, although this typically is still non-refundable and usually does not apply to the purchase price. At the end of the lease period, the buyer can choose to exercise their option to purchase the property. If they choose not to do so, the option expires

Documents
Often overlooked in a lease-purchase or lease-option agreement are the details of the lease period. It's important for buyer and seller alike to recognize that prior to the end of the lease period, one party will be the tenant and the other the landlord. As such, the seller should provide a standard rental agreement detailing all of the rules and obligations that would be expected of a renter. Likewise, the buyer should carefully review the rules

Responsibilities
During the lease period, the owner must obey all applicable landlord-tenant laws (lease provisions out of step with these laws are unenforceable, even if signed by the tenant).
The buyer and seller must work out who will be responsible for expenses related to the home's upkeep, including repairs, taxes and insurance.

In many cases (typically lease-purchase) the seller will require that the buyer approve a home inspection prior to the lease period. The buyer must sign off on the results of the inspection as a condition of the agreement. Once inspected, the condition of the home is accepted "as is". This is to prevent the occupant from causing damage during the lease period and requiring the owner to make repairs prior to purchase.

In a lease-option, any money paid by the buyer towards the purchase of the home should be held by a third party and not disbursed until the purchase option is exercised and the deal closes.

The buyer should always review the status of the property's title and insurance prior to signing the lease-to-own agreement.

Who Benefits from a Lease-to-Own Agreement?
While not for everyone, these types of purchase arrangements can be beneficial to a range of buyers and sellers. Purchase prices in lease-to-own agreements rarely reflect deep discounts, making them an option for sellers who want to ensure market value for their home. For motivated sellers (especially those who have purchased another home and cannot afford to leave the property vacant), a lease-to-own provides monthly income with either a guarantee or a strong chance of future sale.

Buyers without cash for a large down payment can use a lease-purchase/lease-option agreement to secure a home and build a payment over the course of the lease. Relocated buyers new to the area can use a lease-option agreement to check out the neighborhood and the home before making the ultimate decision to buy.

Whether buying or selling, lease-purchase and lease-option agreements are far from the norm, and are best handled with close consultation from a real estate attorney who can review all documentation and provide expert advice at all stages.

The article is taken from one of our recent Newsletters that was e-mailed to all registered subscribers, via our RE/MAX of New Jersey web site.

Saturday, December 06, 2008

Winter is a time for gatherings, from formal office parties to traditional dinners to small, casual get-togethers of old friends. But spreading all that holiday cheer can be a lot of work, particularly for those hosting an event. Above all else, planning and hosting winter a party can be a huge financial commitment.

Footing a large party bill can be a daunting prospect, especially with consumer prices up and presents left to buy. Below are some ways to host a holiday party on a lighter budget:

Ditch the paper invitations: Elaborate invitations with all the trimmings may be fun, but overall they are a waste of time and resources. In our digital age, an emailed invitation (such as those provided by evite.com) can be just as effective. If you just can't resist that hands-on touch, design your invitation graphic and email it out to your guests.

Use real dishes and glassware: Disposable plates, silverware and glasses may save you the trouble of an end of the night washing frenzy, but they do cost money (particularly the higher-end versions). On top of the product cost, you'll also be left with that much more garbage at the end of the night.

Keep decorations simple: Focus on simple lighting touches (white lights, candles, etc) and fresh flowers.

Limit your food purchases: You may be tempted to dazzle your guests with a wide range of culinary delights, but it pays to simplify. Choose a smaller crowd-pleasing array of appetizers, sides and entrees.

Purchase fewer beverages, in quantity: Along the same lines, you will have an easier time staying on budget if you focus your beverage options on some reliable standards, rather than trying to cater to every possible taste. Buy juice, soda and mixers in large (2 liter+) containers.

Ask for help: It's the season for giving, so give yourself a break! Many guests will ask if they can bring anything or if they can help out in another way. If you're not comfortable asking all guests to bring a dish, have a select group bring an appetizer or dessert. Getting a little outside assistance can dramatically lower your holiday spending and ease your stress levels.

The article is taken from one of our recent Newsletters that was e-mailed to all registered subscribers, via our RE/MAX of New Jersey web site.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).