New Home Sales Are the Worst since 1995

Purchases of new homes fell to a new 12 year low ending in Dec of last year, the biggest annual decline on record. The medium price also dropped last month by 10% from Dec 2006, the biggest decline in 37 years.

 These reports may reinforce the concern that falling home values and stricter lending rules   will lead to more foreclosures and hurt consumer spending. The Federal Reserve as of late has been making drastic cuts, hopefully these rate cuts will help to avoid a recession.

 These numbers may be a blow to the ideal of a housing-market recovery.

The broader economy is very close to falling over the edge and according to many of the experts the Fed really need to thing aggressively on cutting rates as if we were in a recession.

 The government’s economic stimulus plan also seeks to address the housing slump. The accord includes a provision allowing Fannie Mae and Freddie Mac, the largest U.S. Mortgage finance companies to temporarily buy mortgages of as much as $729,750, exceeding the current $417,000 federal limit.

The National Assoc Of Realtors also stated recently the sales of  previously-owned homes, which account for about 85% of the market, fell more that forecast in December, capping the biggest yearly slump in more that a generation.

 According to a lot of the experts, the real estate market will not make any tangible type of recovery until at lease 2009.

Good luck

James Loftis P.A.

www.RealEstate911.com

Selling your house with code violations.

  Selling your house with code violations could be very costly to you the seller.

You should inform all prospective buyers in writing of any work that was done to your property without the proper permits. If you don’t, the buyer could sue you if something later goes wrong or if the city  eventually discovers that the work was done without the proper paperwork and demand that the work that was done without the proper permits be torn down.

  May buyers get nervous when a seller notifies them that   work was performed on the property without the required permits and then either request  a lower  selling price or cancel the deal  altogether.  If you don’t want to take this risk by making the required disclosure, consider calling the local building dept and see if you can obtain an “as built” permit for the work that was performed without  the permit.

 As “as built” permit is basically a permit that is issued after a project is completed and city inspectors determine that it meets the current building code.

 When issuing the as-built permit the city may levy a fine on you for doing the work without filing for the permit. But the fine would likely be less that the steep discount the buyer may demand to purchase your home in its present illegal condition, and you should also keep in mind of the legal consequences if the buyer sues you after the sale is completed and they find out about the illegal repairs.

Good Luck

James Loftis P.A. CRS,GRI,EPRO

www.RealEstate911.com

Building your own home

Building your own home can be difficult, but you can get a decent ball park  figure if you have a good idea about the floor plan and materials you want  before choosing a contractor.

 Construction cost currently average between $95 and $150 per sq foot according to B4UBuild.com a company that provides floor plans and other information for people who are planning to build a new house.

 You probable  can keep your own costs down near the lower end of the spectrum if you settle for basic  building materials, but expenses  can quickly  soar  above $150 or even more than $200 per sq foot  if you  instead want  expensive  tiling , fancy  cabinets  or the like.

 Your construction costs will also depend on the actual shape of your new home.  As a general rule, the simpler the floor plan, the lower your costs. Rectangular or square homes minimize the needed amout of lumber and save on labor charges for framing.  More elaborate plans that include things like vaulted ceiling drive up the cost because they require extra materials and additional labor.

  There are some internet sites and software programs that are available to help you with the estimates of your project. . One of the the websites is  www.Buiildig-cost.net,  which can provide you with a free estimate  based  on the factors ranging from the quality of  materials you want to the use to the cost of permits and related  items that you’ll need to obtain from the city or county.

 Once you have figured out how much you want to spend, call a t least three contractors and ask  each one for written bids on the job.. Also check out their  insurance coverage and licenses with state  regulators, contact your local Better Business Bureau to se if they have any complaints on file, and make sure  you ask for references so that you can call there previous  customers and set up a time to  look at each builder’s work.

 After you decide on which contactor to use, sit down with him or her and decide which changes you might need to make in order to keep your construction cost within the budget that you established earlier.

 Building your own home is certainly not a task for everyone. But for those who have a dream of building there own home, it is not as difficult as it may seem. There is a lot of help that is available to you. For a lot of people who do build there own home it will a source of pride for many years to come.

Good Luck.

James Loftis

www.RealEstate911.com

Steps you can take to help avoid Foreclosure

Facing foreclosure is a very difficult situation for most anyone.

If you are facing foreclosure there are a few things that you need to consider.

By the time you get a court date, it’s a little late to unwind the clock; instead if you want to stop the bank for foreclosing on your house, the time to get help is in the early stages of the foreclosure process not at the end.

 Most people know how to account for every dollar that come in, It may not be your favorite task each month, but if money is tight and you’re trying to make ends meet, you  know  when the budget is about to snap.

 When you have a list of debts and bills, you should sort them from most important to least important. While all the bills should be paid, the one that goes to the top of the list is the one that will cause your family the most damage if it isn’t paid on time.

 If I were organizing a list, it would read: mortgage payment; home equity line of credit; utility bills; car payment; credit card debt and other bills.

 Once you know that you won’t have enough cash to go around, it’s tempting to skip the largest bill, which is typically your mortgage payment. But in some states, foreclosure is fast-tracked, which means you could find yourself receiving a foreclosure notice from your lender in as little as 60 days.

 So once you know there isn’t enough money to go around and you know you’ll be missing a payment you need to call your lender. If you’ve already missed a payment, and your lender has called you, you need to pick yup the phone and return the call.

Talking to your lender is the best way to stop foreclosure.

 Many borrowers have complained that when they call there mortgage company no one picks up the phone.  Or, they get transferred from department to department.

  The truth is, if you don’t talk to your lender, and it doesn’t get recorded in your file, it doesn’t matter how often you tried to call. When it come to foreclosure

Trying doesn’t count.

 If you’re  having trouble reaching your lender, call a HUD-certified housing counselor, who may be able  to reach  out to your lender on your behalf. The toll free number is (800)569-4287, or goes online to www.HUD.Gov/foreclosure/index.cfn.

 Once you miss a payment your lender will start sending you letters. If you want to avoid foreclosure, open the letters,. These are supposed to contain information on how you can save your home.

  IN order to help you save your home, lenders can make changes to the terms of your loan agreement. The best time to do this is either just before or just after you miss your first payment.

 There are a number of things that the lender can do.

(1)   Reinstate your loan (you’ll catch up with everything you owe by a certain date.

(2)   Offer forbearance (give you a few months off from making payments, while developing a plan to get you current on your loan down the line.

(3)    Set up a repayment plan (where you agree to pay  a little each moth for the next six  months or a year until you’re caught up

(4)   Modify your loan (this will change the terms so that the payments are more affordable.

 All of the talk you’re hearing about the government-sponsored solution to the mortgage crisis deals with loan-modifications. The federal government is pushing investors who bought your loan to agree to modify the terms for the next few years. When a lenders aggress to modify your loan, it could mean that the  missed payments will be added  to the loan amount, or that the interest rate will be changed from a variable  rate to a fixed, or perhaps it will be lowered to a different interest  rate. A final loan modification option is to adjust the amortization schedule, so that you have a longer loan term, but your payments each month are smaller.

 So, if you are facing foreclosure, Talk to your lender.

There are options available to you.

Good Luck.

James Loftis P.A. CRS,GRI, EPRO

www.RealEstate911.com

Buying properties at auctions

Buying properties at auction certainty has its advantages but the pitfalls are plentiful.

Shopping for real estate is always a trial, but buying a property at an auction-whether it’s a Foreclosed unit sold by a lender or a new condo offered by a developer comes with a special set of problems.

 Auctions are poised to become an alternative to conventional purchase strategies as bargain hunters seek to take advantage of the worst U.S. housing slump in 16 years.

  South Florida has become one the most hardest hit areas of the nation, because of the cheap arability on money early in the decade, condo developers launched dozens of projects across the region, especially in downtown Miami. Now thousands of the new condos are coming on the market and developers are facing a glut of units either unsold or abandoned by; their buyers.

 Auctions of foreclosed properties and excess developer inventory produced mixed results last year. At some auctions, almost nothing sold; at others, there was a buyer for almost every unit.

 Some buyer’s priced out of the market during the housing bubble now have the opportunity to acquire homes at there  true market value, But bargain hunters  need to educate themselves to avoid trips to court or buying an unsuitable property.

 On of the things to look out for is the “buyer premium” which is a 5 or 10 percent premium that is added to the final bid by the auction house to pay for there advertising  and other expenses. Buyers often get caught up in the buying frenzy and forget about this extra expense.

 To resister to bid, buyers are required to provide on the day of the auction a check which has to be certified funds or a cashier’s check for the amount of the buyer’s premium. Unsuccessful bidders get there check back, checks of successful bidders go toward the purchase.

 Successful bidders’ must deposit 10 Percent of the final sales price at the auction and close within 30-45 days. The contract is not contingent on obtaining financing. If buyers fail to get a mortgage they lose there deposit.

 Every auction house has its own rules tat are available to buyers well before the auction. Some auctioneers even hold workshops to educate potential buyers.

  The challenges of buying houses and condos at auction go beyond understanding the terms of the auction. It includes researching the condo complex and the individual unit to be bid on

 In a down market there are many variables that need to be taken into consideration before biding. A bidder needs to research the percentage of foreclosed units in a building and the number of homeowners who are behind on there maintenance fees.  A high number of foreclosures or delinquent dues can impact the bidders financing on the deal. 

Lenders may require lager down payment or increase the interest rats of a loan if they think the property is risky.

 Lenders are aware of the fact that the condo association could go broke if the dues are not paid and this could cause property   values to fall in the entire complex.

 When a lender forecloses on a property in Florida, it takes part in a foreclosure sale at the courthouse. If it finds no takers there, the lender buys the property and either auctions the property off or contacts with a real estate brokerage to market the property as an reo.

 Auction sales are not contingent upon inspection, so it is important to inspect the unit before bidding on it. This is sometime difficult to do but I would recommend making this inspection before biding, if you are unable to make the inspection yourself you may want to consider paying a professional to do so for you.

 Developers are  warming to the idea of selling fast and at a discount rather that continuing to pay carrying cost, which for those who are willing  to do there homework before buying  could save them a lot of money on there home purchase.

 James Loftis P.A. Realtor/Broker Assoc,CRS,GRI,EPRO

www.RealEstate911.com

Some positive news for Realtors  and home buyes  in -08

 In spite of all the bad news reports as of late regarding the nations housing, there is plenty of good news, the most recent of which comes from NAR, the National Association Of Realtors.

 Laurence Yun, the chief economist for NAR, has plenty of good news for realtors. At last month’s conference. Yun attributed much of today’s sub prime mortgage problems to greed. Wall Street wanted the 10-12 percent return that traditional mortgage products yielded as opposed to the smaller returns from more traditional mortgage products. His take on the Wall Street types were that they gamble and lost.

 Yun’s outlook for 2008 sees a shift from greedy speculators to serious homeowners. 2008 will be a year of opportunity where there will be serious healthy business.. Furthermore, Yun predicted that the market returns to normal by 2009.

 Here are some key pieces of the report from Yun,

1. New Housing stats: Even though these are dropping, there was too much building in recent years. The Market is simply adjusting to normal supply-and demand pressures.
2. Foreclosures: According to Yin, the 41 percent increase in foreclosures has resulted primarily from investor-heavy real estate purchase in California, Florida and Nevada. The majority of these individuals are flippers whose investment did not payoff. More importantly, the number of foreclosures in Utah, New Mexico, North Carolina and South Carolina is actually declining.
3. 3. Under-priced markets and superstar cities:  Although the coastal markets are still overpriced. Middle America is under priced
4. The recovery has started: Other than the three  states hit heavily by job losses in the auto industry, (Indiana, Michigan and Ohio) the states that first experienced a downturn in the northeast are now in recovery, Specifically Connecticut, Massachusetts, New York and Rhode Island were the fist to feel the slump and are now well into recovery. Furthermore , there appears to be a pent-up demand for first time buyer properties due to a large number of Gen  Y’s (born 1977 to 1994) that are now buying there first homes. Falling interest     rates will motivate many of these buyers to step into the market now.

1. New Jobs and corporate profits are still strong: Corporate profits are still strong with companies as diverse as Microsoft and Jack Daniels reporting close to record profits. Furthermore, the economy has generated 4 million net new jobs and wages are rising.
2. A weak dollar may harbinger more foreign investment s in U.S. real estate: Although the decline of the U.S. Dollar will end up costing us more when we go overseas or purchase imports, it has resulted in more manufacturing jobs returning to the U.S. It also may mean more foreign investment in the U.S. properties as well. Just a few years ago, the Canadian dollar was only worth 70 cents in U.S.  Currency. Today, the Canadian dollar has been hovering at about $1.05 to $1.10 U.S”.  What this means is that we can expect more Canadians and Europeans to be purchasing U.S. property, because our prices are approximately 50% cheaper that they were just three years ago.
3. Real Estate: Still the best shelter: For those agents who represent reluctant first time buyers, Yun points to some interesting research from the Federal Reserve. Between 1995 and 2004, the average renter accumulated $4,000 in wealth. In contrast the average homeowner accumulated $184,000, Furthermore, the typical homeowner holds there property for 6 years. Within this period of time, NAR’s research shows that approximately 97 percent of the homeowners will have a positive equity   position after that period of time.

Bottom line is that 2008 represents the best window that buyers will have to find  excellent deals with excellent financing.

Good Luck

James Loftis P.A.,Realtor,Broker Associate,CRS,GRI,EPro

http://www.RealEstate911.com

Home  prices hit six- year low , led by Miami

Home prices in 20 Metropolitan areas fell in October by the most in at least

Six years, a private survey showed Wednesday.

  Property values fell 6.1 percent from October 2006, more that forecast,

After dropping 4.9 percent in September, according to the  S&P/Case-Shiller Home

Price index. The decrease was the biggest since the group started keeping year over year records in 2001. The index has fallen every month this year.

  Prices are forecast by the experts to decline even more as the jump in foreclosures

And stricter lending rules make it harder for buyers to find financing.

These declining values make it harder for owners to tap home equity

For extra cash, posing a risk to consumer spending.

  Compared with a month earlier , home prices dropped 1.4%, the biggest one month decline since records began. The index is a composite of transactions

 In 20 metropolitan areas. Seventeen  cities showed a year over year

Decline in prices, led by 12 percent slumps in Miami and Tampa.

 A report on Nov 21st from the National  Association Of Realtors show

Home prices fell in one third of U.S. cities last quarter.

 The glut of foreclosures adding to the unsold homes on the market

Is predicted to further reduce market values in many homes.

With all these predictions by the experts it seems that it may  be awhile

Before we start seeing  real improvement in this market.

Bankruptcy Judges may get power to Modify Mortgage Terms (edit/delete)

Bankruptcy judges would get new authority to  modify the  terms of a mortgage on a homeowners primary residence under legislation approved last week by the house Judicary commitee  to assist homeowners facing forclosure because of the recent sub prime mortgage crisis

 Under current law, bankruptcy judges are able to adjust terms of a loan only on second homes. H.R 3609 allows them to modify the mortgage for a primary  residence based on its actual value rather than an an inflated appraised price if the borrower shows  he or she is unable to make payments and the home is in the foreclosure process.

The bill is supported by a number of consumer groups including the center for responsible lending , as well as the governors of Ohio, MIchigan, Illinois and New Mexico. This bankruptcy change  could directly assist the more than 600,000 homeowners currently facing foreclosure and the two milliion homowners who will see there mortgage rates skyrocket over the next two years. In addition the bill  will encourage lending institutions to renegotiate the terms of loans that have become too costly for the homeownes to afford.

Filing for bankrupty is something that most people would not like to do, but the future may force some of those home owners who really want to save there home, and bankruptcy  may be an option that may be a consideration.

Bankruptcy Judges may get power to Modify Mortgage Terms (edit/delete)

Bankruptcy judges would get new authority to  modify the  terms of a mortgage on a homeowners primary residence under legislation approved last week by the house Judicary commitee  to assist homeowners facing forclosure because of the recent sub prime mortgage crisis

 Under current law, bankruptcy judges are able to adjust terms of a loan only on second homes. H.R 3609 allows them to modify the mortgage for a primary  residence based on its actual value rather than an an inflated appraised price if the borrower show he or she is unable to make payments and the home is in the foreclosure process.

The bill is supported by a number of consumer groups including the center for responsible lending , as well as the governors of Ohio, MIchigan, Illinois and New Mexico. This bankruptcy change  could directly assist the more than 600,000 homeowners currently facing foreclosure and the two milliion homowners who will see there mortgage rates skyrocket over the next two years. In addition the bill  will encourage lending institutions to renegotiate the terms of loans that have become too costly for the homeownes to afford.

Filing for bankrupty is something that most people would not like to do, but the future may force some of those home owners who really want to save there home, and bankruptcy  may be an option that may be a consideration.

Hope this information may help.

James Loftis P.A.

http://www.RealEstate911.com

If you have any other questions please contact me anytime.

Thanks

James Loftis P.A. Realtor/Broker assoc, CRS,GRI,EPRO

http://www.RealEstate911.com

11 Things You Need to Know to Pass Your Home Inspection

"According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection when your home is for sale. Here are 11 you should know about if you’re planning to put your home up for sale."

Homebuyers Want to Know Your Home Inside and Out

While homebuyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be. Will the roof end up leaking? Is the wiring safe? What about the plumbing?  These, and others, are the questions that the buyers looking at your home will seek professional help to answer.

According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection. We’ve identified the 11 most common of these and, if not identified and dealt with, any of these 11 items could cost you dearly in terms of repair.

In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. Knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

11 Things You Need to Know to Pass Your Home Inspection

1. Defective Plumbing

Defective plumbing can manifest itself in two different ways: leaking, and clogging. A visual inspection can detect leaking, and an inspector will gauge water pressure by turning on all faucets in the highest bathroom and then flushing the toilet. If you hear the sound of running water, it indicates that the pipes are undersized. If the water appears dirty when first turned on at the faucet, this is a good indication that the pipes are rusting, which can result in severe water quality problems.

2. Damp or Wet Basement

An inspector will check your walls for a powdery white mineral deposit a few inches off the floor, and will look to see if you feel secure enough to store things right on your basement floor. A mildew odor is almost impossible to eliminate, and an inspector will certainly be conscious of it.

It could cost you $200-$1,000 to seal a crack in or around your basement foundation depending on severity and location. Adding a sump pump and pit could run you around $750 - $1,000, and complete waterproofing (of an average 3 bedroom home) could amount to $5,000-$15,000. You will have to weigh these figures into the calculation of what price you want to net on your home.

3. Inadequate Wiring & Electrical

Your home should have a minimum of 100 amps service, and this should be clearly marked. Wire should be copper or aluminum. Home inspectors will look at octopus plugs as indicative of inadequate circuits and a potential fire hazard.

4. Poor Heating & Cooling Systems

Insufficient insulation, and an inadequate or a poorly functioning heating system, are the most common causes of poor heating. While an adequately clean furnace, without rust on the heat exchanger, usually has life left in it, an inspector will be asking and checking to see if your furnace is over its typical life span of 15-25 yrs. For a forced air gas system, a heat exchanger will come under particular scrutiny since one that is cracked can emit deadly carbon monoxide into the home. These heat exchangers must be replaced if damaged - they cannot be repaired.

5. Roofing Problems

Water leakage through the roof can occur for a variety of reasons such as physical deterioration of the asphalt shingles (e.g. curling or splitting), or mechanical damage from a wind storm. When gutters leak and downspouts allow water to run down and through the exterior walls, this external problem becomes a major internal one.

6. Damp Attic Spaces

Aside from basement dampness, problems with ventilation, insulation and vapor barriers can cause water, moisture, mold and mildew to form in the attic. This can lead to premature wear of the roof, structure and building materials. The cost to fix this damage could easily run over $2,500.

7. Rotting Wood

This can occur in many places (door or window frames, trim, siding, decks and fences). The building inspector will sometimes probe the wood to see if this is present - especially when wood has been freshly painted.

8. Masonry Work

Re-bricking can be costly, but, left unattended, these repairs can cause problems with water and moisture penetration into the home which in turn could lead to a chimney being clogged by fallen bricks or even a chimney which falls onto the roof. It can be costly to rebuild a chimney or to have it repainted.

9. Unsafe or Over-fused Electrical Circuit

A fire hazard is created when more amperage is drawn on the circuit than was intended. 15 amp circuits are the most common in a typical home, with larger service for large appliances such as stoves and dryers. It can cost several hundred dollars to replace your fuse panel with a circuit panel.

10. Adequate Security Features

More than a purchased security system, an inspector will look for the basic safety features that will protect your home such as proper locks on windows and patio doors, dead bolts on the doors, smoke and even carbon monoxide detectors in every bedroom and on every level. Even though pricing will vary, these components will add to your costs. Before purchasing or installing, you should check with your local experts.

11. Structural/Foundation Problems

An inspector will certainly investigate the underlying footing and foundation of your home as structural integrity is fundamental to your home.

When you put your home on the market, you don’t want any unpleasant surprises that could cost you the sale of your home. By having an understanding of these 11 problem areas as you walk through your home, you’ll be arming yourself against future disappointment

Hope this helps, if your have any other questions regarding selling your property please contact me.

Thanks

Homeowners facing forecloure and facing a very difficult situation and the word "bankruptcy"

may inter into the picture 

Filing either Chapter 13 bankruptcy reorganization or Chapter 7 "straight" bankruptcy will delay the foreclosure sale of your house. But the auction will eventually occur unless you reinstate the mortgage, refinance it or sell the house. When you file bankruptcy, an "automatic stay" stops creditors from collection efforts, including a foreclosure sale.

But your mortgage is a loan secured by your home. Filing bankruptcy won't prevent the home's eventual forced sale unless you either reinstate the mortgage by paying the missing payments or pay off the mortgage by refinancing or selling the home.

Before you can file bankruptcy, you must meet with a certified bankruptcy counselor to discuss your alternatives. Unless you are truly broke, filing bankruptcy could be a major mistake because creditors look very unfavorably on bankrupt debtors.

Chapter 13 bankruptcy, if you now have income, allows you to reorganize and pay off your debts over as long as 60 months. This program gives you time to make up those missing mortgage payments. However, if you miss any payments in your reorganization plan, as approved by the bankruptcy court, then the lender can proceed with the foreclosure.

Chapter 7 is what I call "ultimate bankruptcy." If you have more liabilities than assets, you can then be forced to sell your home and other major assets, with some exceptions such as work tools. Your creditors would be paid, usually pennies on the dollars owed. If you have equity in your home, the mortgage lender will get 100 percent payment as a secured lender.

Don't be railroaded into filing bankruptcy. Talk with a certified bankruptcy counselor to discuss your alternatives. Maybe the situation isn't as dire as you think.

Good Luck.

The Department of Housing and Urban Development gave lenders the go-ahead last week to start refinancing delinquent subprime borrowers into Federal Housing Administration loans.

The emergency program is designed to give certain subprime borrowers with adjustable-rate mortgages a refinancing option to avoid foreclosure.

It is a key component of the Bush administration's efforts to mitigate the fallout from the subprime mortgage debacle.

Under the program, borrowers that were current on their monthly payments up to the time of the reset of their ARM can qualify for a new FHA-insured mortgage, according to the FHA mortgagee letter that spells out the requirements for the refi program.

Eligible homeowners can roll missed payments in their new FHA loan but they can't go above a 97.75% loan-to-value ratio on the first mortgage, based on a new appraisal.

But the FHA will allow a second lien to provide some flexibility for borrowers who have experienced a decline in property values and can't afford the closing costs or late fees. "That is nice feature," said FHA consultant Bud Carter. "They really made an effort to try and reach a lot of these borrowers." Mr. Carter is with Potomac Partners in Washington.

President George Bush announced the creation of the FHA refinancing program, which is call "FHA Secure," just before the Labor Day weekend. The FHA Secure program will give "many families who are struggling" an opportunity to refinance into FHA-insured mortgages and keep their homes, the president said.

The president stressed that it is not a "bailout" for lenders or speculators. But he said the government has a role to play in helping American homeowners "get through this difficult time." FHA Secure is a temporary program, however, and it is set to end by the end of calendar year 2008.

President Bush also said the Department of Housing and Urban Development will issue a Real Estate Settlement Procedures Act proposal soon to "require mortgage brokers to fully disclose their fees and costs."

HUD is expected to issue a proposal later this fall that revamps the good-faith estimate disclosure that borrowers receive shortly after signing an application for a mortgage.

The president also called on Congress to pass FHA reform legislation that would increase FHA loan limits, lower downpayment requirements and offer more flexibility in pricing mortgage insurance premiums.

The House is on track to pass an FHA reform bill quickly, possibly this week. But it is unclear when the Senate Banking Committee will be able to reach a consensus on FHA reforms.

Meanwhile, HUD estimates the FHA will refinance over 100,000 subprime borrowers into FHA loans by the end of this fiscal year, which ends Sept. 30. And the FHA could refinance another 160,000 subprime borrowers in FY 2008 without any changes to its program.

With the new FHA Secure program, HUD expects to reach another 60,000 subprime borrowers because the FHA will be able to refinance delinquent borrowers for the first time.

HUD officials say they can reach even more subprime borrowers by implementing risked-based pricing. And the department is planning to implement risked-based pricing through an administrative action, if Congress does not pass an FHA bill by Jan. 1.

By pricing its mortgage insurance premiums by credit risk, the FHA could help another 20,000 subprime borrowers refinance into a new FHA-insured mortgage in FY 2008 and help 120,000 new homebuyers who have fewer financing options due to the contraction in subprime lending, a HUD official said.

I am working on 3 short sales for three of my clients.

There seems to be more and more people who are becoming late on

there mortgage payments and a short sale agreement with there lender

may be an option for the property owner.

With a short sale agreement, the lender will take less what is owned

on the loan. This is good for the property owner because it will save his

credit from having a foreclosure on his record.

A lot of people facing foreclosure may not be thinking ahead of how this

foreclosure on there record will affect them, but if they can keep

it from becoming a part of there credit file it will be of a great benifit to them.