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Monday, June 8, 2009

JUNE GLOOM IN THE SOUTH BAY


June and everyone is getting ready for beach weather but here at the beach it's June Gloom time. Hard to figure out sometimes why the beach weather is always best around October. I lived on the beach for 15+ years and my toes never touched the water until late August. Hearty souls racing through the surf without wetsuits in June amuse me! Any surfer knows the coast will not be kind for 30+ days.

But I digress...this year the gloom is on the market! Albeit June, but not the same kind of gloom. Just as we begin to dip our toes in the icy waters of real estate this frightful year, hearing hopeful words from our courageous leaders about fabulous first time buyer programs, lowest interest rates in history, markets trending upwards, here come the clouds (or as Judy Collins used to sing..."bring in the clowns.") Of course as the summer season begins to heat up, Bernanke starts to cool down. I find myself screaming at the newsbusters - FOCUS, FOCUS, FOCUS! (Too bad Mervyns closed down, I loved those OpenOpenOpen commercials)
And so, as our fearless leader races around the globe trying to solve world problems and make nice and our governator beseeches us to be flexible with our tax dollars, I ponder...is it my imagination that 70% of the listings are "short sales" and now they are raising the interest rate?
If June Gloom happens in the forest and nobody sees it does it really exist?
As Judy Collins sings ... Isn't it bliss...don't you approve...one who keeps tearing around...one who can't move...where are the clowns?...send in the clowns...don't bother they're here!

Monday, June 1, 2009

$8,000 First-Time Home Buyer Tax Credit

As the stomach churns and as prices continue to plunge across the US, there are more programs being offered to help stimulate first time buyers into action. The biggest one right now is the $8,000 First Time Home Buyer Credit Program.

U.S. Housing and Urban Development Secretary Shaun Donovan on Friday unveiled a policy change to that program that would provide home buyers with quicker access. Buyers would be free to put the funds toward closing costs and a portion of their down payment instead of receiving only a tax credit. The federal government hopes that the measure will stimulate housing demand.


President Obama's $787 billion economic stimulus plan—which was signed into law in mid-February—included a tax credit worth up to $8,000 for qualified first-time home buyers. The $8,000, however, was only being issued as a "tax credit." The new HUD initiative enables borrowers to obtain short-term loans allowing them to tap the tax credit to actually purchase the home. Donovan said in a news release. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to handle an oversupply of housing."


The measure only applies to Federal Housing Administration (FHA) mortgages and the short-term loans can't be used to pay for the minimum 3.5 percent down payment that FHA loans require. Instead, the loan can be used for closing costs and to finance the portion of the down payment that exceeds the 3.5 percent threshold. The administration opted to have borrowers come up with the initial 3.5 percent themselves to ensure that buyers have an investment in the purchase, which they feel will reduce the likelihood of default.


If you are a first time buyer and are interested in obtaining an FHA loan utilizing the $8,000 credit, call for more information and we will refer you to a qualified FHA Mortgage Broker in your area. This is a special program and must be handled by FHA certified mortgage brokers.


Also available on demand are 2009 Sales Charts for all the South Bay cities. Call or email with your specific city request and we'll send out your up to date FREE, no obligation sales chart for your area (or area in which you are interested in investing.) I will also be posting monthly updates for the South Bay area on my Facebook Page (check Twitter for update notices.)


Stimulate OUR economy - buy local!

By the way, the cute little house at the top is a new Lease Offering @ $2300 per month for those not yet ready to buy - call for more information. It's located in beautiful Lomita Pines!