The Flood of Foreclosures

It is no secret that the number of foreclosures on homes has reached an all time high. However, why have they not reached the Multiple Listing System?
In a normal market a bank will repossess a property a usually process it through a listing agent within 30 days. Today with roughly 400-500,000 properties repossessed over the past year, they are not yet on the market.
Lenders and servicers office explanations as to why it is taking longer to process foreclosed properties that it has in the past:

1. Many of the properties have title issues that need to be resolved
2. Many of the properties are in states of extreme disrepair
3. A number of states have strict redemption-rights periods which prevent the lender from reselling the property.
4. A few states have extended the length of eviction proceedings
5. The volume of REO's (foreclosed properties going into the MLS) has slowed down the process; there will be roughly 10 times the number of REO's this year as in the last "normal" year, 2005

There are many agents and buyers waiting for these potential "bargain" properties to come on the market. The banks often price them according to market condition but are also willing to take less than a homeowner to increase their chance of unloading the property and saving as much money as possible.

The New Credit Card Act

I am sure many of you have seen one if not all of the following things occur regarding your credits cards:
1. interest rate
2. unfair fee
3. decrease in credit line

These changes were probably made without any notification and have negatively affected your credit scores. Credit card companies have been in control making the consumer feel ineffective at managing their credit.

To make matters worse it was reported that credit card providers collect around $15 billion in penalty fees each year!


There could be some good news.

The Credit Card Accountability, Responsibility and Disclosure Act of 2009
( aka The Credit Card Act)
Signed into law on May 22, 2009. Provides some of the most proactive credit card consumer legislation in 60 years. "The Act" is important and anyone who has a credit card should understand it's basic principles.

There are 2 key provisions:

1. Until August 19, 2009 consumers were only given 15 days notice of their interest rate change. Now, they must alert you 45 days prior to any change. This gives you the chance to call your credit card company and offer an explanation for the whatever situation may have arose. Try and renegotiate your interest rate. If they won't budge, take your business elsewhere.

2. Card holders will now have 21 days instead of 14 to make their payments. This is a huge plus for consumers who are fighting to keep on top of their bills and those who travel a lot.

The most significant portions of the law go into effect on February 22, 2010. Here are some details:

No unfair changes-
Credit card issuers will not be able to change your credit status at anytime, for any reason. If you miss a payment with one creditor, another cannot automatically increase your interest rate or drop your credit limit, which can often affect your credit scores.

Restrictions under 21 years of age-
Consumers under the age of 21 will need a co-signer or a job in order to get a credit card. This will help limit the number of young, college age card holders.

Over-limit Fee Control-
Card holders will no longer be able to exceed their limit without having the card holder's permission to do so. If you have not agreed to allow over-limit exceptions, your card will be declined thus saving your credit score.

Late fees-
If your credit card provider charges late fees, they must clearly disclose them on your monthly statement.

Credit Card Agreements-
Creditors will now be required to have a copy of your credit agreement for you on a website.


As we have seen it is crucial to actively mange and monitor your credit profile to ensure you are fully aware of any changes.

Historic Rehabilitation Tax Credit

The New York State Historic Rehabilitation Tax Credit program was enhanced from 2008. This is thanks to the Preservation League of NY. They led a diverse coalition of business and municiple leaders, preservation organizations and environmental groups to help enhance this program. The goal is to stimulate downtown and neighborhood revitalization in municipalities that need meaningful economic development tools.

The following are the changes made:

Rehabilitation of Historic Properties -Commercial:

• credit percentage increases from 6% to 10% of qualified rehabilitation costs (NYS credit is now 50% of the federal credit rate)
• Credit cap increases from 100K to $5 million
• Establishes transferability among business partnerships

Historic Home ownership Rehabilitation:

• credit cap increases from $25K to $50K per residence
• Qualifies historic housing census tracts at or below 90% State Median Family Income (SMFI)
• Establishes credit rebate provision for homeowners earning less than $60,000

More Help for First Time Buyers

In the state of New York first time buyers will receive more financial help. Governor Paterson announced on September 1 that New York will offer a federal income tax credit. The NYS Mortgage Credit Certificate (MCC) will enable first time buyers to claim a tax credit equal to 20% of their annual mortgage interest costs, potentially saving the average home buyer about $1,500. each year.
MCC can be used to reduce a home buyer's tax burden for every year the mortgage loan remains outstanding. With an MCC, 20% of the amount paid in mortgage interest becomes a tax credit than can be deducted, dollar for dollar, from a homeowner's federal income tax liability.

Sample savings:
$150,000 purchase at 5.25%- principal and interest= $829.50
$829.50 x 360 months = $298,620.00
$298.620 - 150,000 purchase price = $148,620 interest
Tax credit over life of loan equals 20% of interest
20% of $148,620 = $29,724 income tax credit

For more information consult with your mortgage lender or REALTOR.

Sign Up, Sign Down

A Realtor's job is easy to sum up- sell a property in the quickest amount of time for the most money possible. One of the reason's Walther REALTORS is remains a strong presence in the very competitive industry of real estate is because we have the basic job a Realtor mastered. There are many other job descriptions of a Realtor that classify one as effective or ineffective. For example, knowledge and expertise help to keep deals together. This is the biggest job of a Realtor. Once the contract is signed there are other negotiations to deal with like the Property Inspection or Well and Septic Test. But a sale is not complete until it closes. A good Realtor will keep tabs on their contracts until it closes because there are many things that can arise during the wait time to close. In this tough economy some buyers get scared of losing their jobs and consider backing out of the deal. However, it is important to inform the buyer of all the positives of buying a home right now- $8000 tax credit to first buyer's, historically low interest rates.

When working with sellers Walther REALTORS is an asset. The consumer knows we are experts, have years of experience, provide the best customer service, and get houses sold. Our listings tend to sell quickly and smoothly so you won't see our FOR SALE signs lingering around for months at a time. Some people think it is a good thing to see tons of signs on properties; they believe it reflects that company is doing a good job. However, the sign should go up and come down in the quickest amount of time possible. As stated before that is what marks the success of a good Realtor.
**But, remember a good Realtor needs the help of the seller in order to be successful. Price and condition are the most important factors in selling a home. The Realtor knows what price point will get the house sold because they have the experience of selling properties. Suggestions to help the property show better should be strongly considered. Buyers are very picky and will pass on a house for what may seem like the littlest reason such as old carpet.

Prepping Your House For Sale On The Cheap

Here are some suggestions for getting your house ready to put on the market at little or no cost.

1. Clean- Do a deep cleaning of your house. Scrub grout and seal natural stone. Scrub flooring. Rub out scratches and nicks on walls and wood floors (Magic Eraser works very well). Wipe down kitchen cabinets, back splash and appliances. Steam clean carpeting.
A clean, fresh smelling home will win you points with buyers every time. Sense of smell is one of the biggest senses to play on. If your house smell musty, stale or like pet odor, often times buyers will not even pay attention to anything else about the house.

2. Lighting- Filling rooms with natural light is crucial. Using bright light bulbs in every room enhances the overall look of the rooms and has a major impact on buyers perception of the home. You don't want rooms to be gloomy and dark.

3. Paint- This is the most inexpensive way to spruce up a room in your house. However, don't spend too much time and effort on painting every room because a potential buyer may not like your color choice and simply re-paint when they move in.
When is it a good idea to paint?
-If a room is full of scuff marks and/or holes
-If the color is very bright and unappealing (like neon or super dark), then choose a very neutral color like beige or light brown
- Do touch ups if you have leftover paint. No need to paint the entire room.

4. Rearrange or remove furniture- Make clear traffic patterns throughout the rooms. Don't make your living room or dining room an obstacle course. Take out large pieces of furniture that make the room seem small.

5. Clean out closets- Cramped and full spaces make them seem smaller than they really are. This goes along with the idea of de-cluttering your home.

6. De-clutter- You want people looking at the architectural aspects of the home and not your stuff. Clear off counter tops and dressers. Show off book shelves and cabinets by limiting the amount of items in them. A little goes a long way.

7. House plants and flowers. They add texture and warmth

8. Make the entry inviting. It is the buyer's first impression. Change out your mailbox. Paint the door if necessary. Place a brand new welcome mat at the door.

9. Replace Some Items
-cabinet handles and pulls can be money well spent. They update the look of the cabinets with out having to replace them. You can even spray paint the old hardware of kitchen cabinets. If they are bright brass, you can can bring them up to date by spraying them a more modern color like pewter or dark bronze.
-Replace worn door knobs and handles
-Sink faucet and fixtures
-Toilet seats and rugs in bathroom

10. Power wash the house and wash windows.

11. Clean up the yard and gardens. Buyers will drive by listings before deciding to make an appointment. Don't let them get turned off and eliminate your home because the outside looks unkempt.

Landscaping Tips

Staging the outside is just as important as the inside. Here are some tips I picked up from REALTOR Magazine

1.Light up the outside

Good lighting allows buyers to see a home and also adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk and corners of the house. However, less is better.

2. Use decorative architectural elements.
A new mailbox, planted window boxes. Colors should complement the landscape and home. Be careful not to overdo it.

3. Maintain a perfect lawn.
A perfectly manicured a lush lawn demonstrates tender loving care.

4. Add splashes of color.
Try and incorporate plantings that bloom in different seasons. Having color throughout your lawn and landscape during all seasons will ensure a beautiful looking yard.