Not enough of a good thing..

We are rapidly approaching the end of the first time buyers tax credit program. I know it has had an impact on my business. I also know that it will help many of my clients pocketbooks. Not to mention the Sellers, agents, lenders, title companies, appraisers, inspectors, etc, etc.

We've heard alot about extending the program. We've heard alot about a new program for all homebuyers. It looks like we are done with it.

Just another case of not enough of a good thing. Check out this article from USA Today.

http://www.usatoday.com/money/economy/housing/2009-10-20-white-house-home-tax-cred_N.htm?csp=34

I guess someone reached into Uncle Sam's pocket and it was empty.

Let me know what you think about the program and if it is/was worthwhile.

Mark Wilson

Check out my website at: www.bigmark.net Let me know what you think, search for listings (even commercial) with the best real estate search engine in the business, follow me on Twitter, see YouTube videos, and check out all of the great content.

IRS on YouTube: Tax Breaks for Homebuyers

Every once and a while I see a good use of social media, other that finding out what's for dinner.

The California Association of Realtors tweeted about the IRS using YouTube to tell taxpayers about tax breaks for buying real estate.

Kinda cool. YouTube is free too. (I like it when the government doesn't spend money.. which is almost never)

Here is an example:

To see more of these videos, check out this link:

http://www.irs.gov/irs/article/0,,id=212289,00.html

Now I have to acknowledge that this is a great use of social media.

The next thing you know... we'll be Twittering our Congressmen and Senators about re-doing the medical system.

Wouldn't that be interesting... having a direct link to the Congress. They would have to hire people to organize the tweets and report the consensus to Congress. (creating jobs) They could hear directly from their constituency.

That would almost be like a... well... a democracy. (twitter is free too)

We'd be able to say that social media really can impact our lives in a positive way.

Ok...ok, sorry... I'm getting off track. Back to the IRS videos. If you'd like to see more, check out my website at: www.bigmark.net and click on the "The Tax Man" button.

While you are there check out the "GATEWAY". It's the best real estate search engine for civilians in the business. There is more great stuff there too.

Let me know what you think.

New requirements for Good Faith Estimate disclosures might cause some problems

Here is information about a new requirement that is part of the MDIA. (Mortgage Disclosure Improvement Act) I received this information from the CAR (California Association of Realtors)

So think about this one... you have a transaction in escrow, everything is coming together. You are about 30 to 45 days into this. Contingencies are removed. The Buyer is scheduled to sign loan docs at 3:30pm this after noon. The moving van is in the Sellers driveway. COE is just a couple days away. Sign, fund, close.

Retail interst rates drop an eighth with the lender at noon. Now what?

Ok, ok. I don't know the answer. I tried the link below but no luck. I guess the site is flooded with Realtors checking it out. But what if you have to re-draw the Good Faith Estimate and wait 3 days or no funds? What happens if the answer is yes? Can the Buyer waive the 3 day wait period? What about the Seller?

Ok, ok. You wait the 3 days, docs are drawn, Buyer is scheduled to sign... It happens again... or worse... the rate goes back up. Does the process start all over again?

Maybe I'm getting worked up over what might happen. I know that's never a good thing. But how do you explain to the Seller that it will only be a couple more days in the hotel?

Check out this information and let me know what you think about it. Better yet tell me your wildest dream worst case scenario. I'll put it in a future blog.

New disclosure rules could affect close of escrow:

Starting July 30, if the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125 percent range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan.
REALTORS® are forewarned that, because of this new three-day waiting period, a lender's failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow.

This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending.

For more information on the MDIA, including its applicability, details of the three-day waiting period, and other requirements, go to

http://www.car.org/legal/other-legal-features/realegal-chart/2009-realegals/realegal-7-17-09/?redirectFrom=login.

First Time Buyer Tax Credit - Many are taking advantage

When I sat down to write this...I had a clear idea of what I wanted to say. My message was going to be that the first time buyers tax credit was being taken advantage of by many people and the legislature was making plans to suppliment and extend the program into the future. The market is being affected positively. Finally something that is working! That sounds like a good thing.

Check out this article from USA Today.

http://www.usatoday.com/money/economy/housing/2009-06-22-homebuyer-credit-may-be-extended_N.htm

So, that said... as I was reading some more on the topic, I stumbled across an article from CNN Money. (I'm not going to put a link in for it)

It was dealing with the same story. Lots of people using the program. But their spin was that we are all going to hell in a handbasket because the First Time HomeBuyers Tax Credit program was running out of money and the market is still showing signs of instability. The feeling I took away from the article was not very positive.

What a load of hooey! My perspective is that CNN Money wanted a negative story. They took a positive and made it a negative. Don't ask me why. Disaster sells?

I think it's important for us, as Realtors, to know the difference. How we communicate to our clients and the public in general makes a huge difference. We need to know the difference. We are advocates.

Ok, I'll go rest now.