Atlanta Real Estate Blog

Tags: Georgia 2008 Sales Tax Holidays, sales tax holiday, energy efficiency, personal computers

The latest Housing Bill is designed

• to re-energize housing by helping people buy and sell real estate and,
• to provide relief for borrowers facing foreclosure. 

Its key elements are:

* Government Sponsored Enterprises (GSEs - Fannie Mae & Freddie Mac) Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500.  The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

* FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program.  The downpayment requirement on FHA loans will go up to 3.5% (from 3%).  YOU WILL HAVE TO HAVE A HIGHER DOWNPAYMENT - BUY NOW!  The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

* Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009.  The credit is repayable over 15 years (making it, in effect, an interest free loan). BUY NOW BEFORE IT'S GONE!

* FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans.  Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value.  Borrowers would have to share 50% of all future appreciation with FHA.  The loan limit for this program is $550,440 nationwide. The program is effective on October 1, 2008.

* Seller-funded downpayment assistance programs – codifies the existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale.  It does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members.  This prohibition goes into effect on October 1, 2008.  BUY NOW BEFORE IT'S GONE!

* VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

* Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year.  This provision is effective from October 1, 2008 through September 30, 2009.

* GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

* Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

* National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs.  In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program.  In later years, the Trust Fund would be used for the development of affordable housing.

* CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

* LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

* Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate).  Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements.  The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Tags: Government Sponsored Enterprises, GSE, Fannie Mae, Freddie Mac, Reform, FHA Reform, Downpayment assistance, Homebuyer Tax Credit , VA loan limits, VA Loan Limits, risk-based pricing, GSE Stabilization, Mortgage Revenue Bond Authority, National Affordable Housing Trust Fund, CDBG Funding, Low Income Housing Tax Credit, HUD, Loan Originator licensing, foreclosure, subprime, refinance

President Bush signs massive housing bill

Measure seen as most significant housing legislation in decades

WASHINGTON - President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.

“We look forward to put in place new authorities to improve confidence and stability in markets,” White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies “intended to keep more deserving American families in their homes.”

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

The House passed the bill a week ago; the Senate voted Saturday to send it to the president.

Bush didn’t like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.

But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress’ delays in action for forcing an imperfect solution.

Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests. Paulson’s request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.

Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing  fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.

The bill takes several approaches to curing the ailing housing market.

It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.

The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.

The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.

It goes far beyond addressing the current crisis, however.

The legislation overhauls the Depression-era FHA.  It requires lenders to show how high a borrower’s payment could get under the terms of his mortgage.  It provides $180 million in pre-foreclosure counseling for struggling homeowners.

The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new “consultative” role overseeing the companies.

The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

Democratic leaders, recognizing that the measure could be one of the last items to become law during what’s left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.

Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.

© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tags: Housing Bill, credit crunch, Depression, FHA, low-income housing tax credit, first-time home buyer tax credit, Freddie Mac, Fannie Mae,  foreclosure, affordable government-backed loans, mortgage relief, refinance

Sellers: Twelve Things to Expect During a Short Sale

I was inspired by this fabulous opportunity to help our troops stationed overseas.  

You can support our service men and women who risk their lives everyday for our country and … it’s totally FREE!!!  

HBO and their show, “Generation Kill” have partnered with several large corporations which have agreed to donate much needed toiletries and other supplies to our troops stationed in Iraq and Afghanistan.  

Press Release

HBO Rallies Brands for Troop Care Packages

Simply click the following link (HBOGeneration Kill).

Then click on the button in the middle of the right side of the screen labeled:  Support The Troops

This will open an order screen where you can select what you want the companies to send. 

You pick it; the participating corporation personalizes the item with your name; they send it on your behalf - all at no cost to you.

Did I mention that it’s FREE?

Tags: Support Our Troops, Generation Kill, HBO,Marine Recon

Water Use Restrictions

The Georgia Department of Natural Resources has established statewide, year-round, outdoor water use restrictions.

The Current Restrictions Are:

In compliance with The State's amended Drought Response Level 4, beginning March 1, 2008, citizens may hand water established landscapes for 25 minutes on the odd/even schedule from Midnight - 10 AM.  Hand watering is defined as one person, with one hose with an automatic shutoff nozzle.

        • Even and Unnumbered addresses may water Mondays, Wednesdays, and Saturdays

        • Odd addresses may water Tuesdays, Thursdays, and Sundays

Cobb County Specific Information ( contact your county for their specifics)

On Tuesday, May 27, 2008, The Cobb County Board of Commissioners adopted a revised Drought Response Plan. Beginning April 1, 2008, citizens who complete the State of Georgia's online water conservation class at www.outdoorwateruse.com will be able to water newly installed landscape for 10 weeks on the odd/even schedule from Midnight - 10 AM.  The online class has a cost of $4.95.  The class may also be taken at Cobb County Extension Office at no charge.  Please call 770-528-4070 to make an appointment.

In order to qualify for a new landscape exemption the customer must pass the state’s water conservation class.  For a business or a homeowners association a representative from the property must pass the class. For an individual home a property owner must pass the class.  A completion certificate, along with the new landscape exemption form, and a receipt for purchase or installation must be sent to the:

Cobb County Water Efficiency Program
660 South Cobb Drive
Marietta, GA 30060
Fax #: 770.419.6478

For more information on Cobb County's Drought Response Plan please visit the Cobb County Water Efficiency page of this website.

The Cobb County Water System will strictly enforce these restrictions. Warnings are issued for a first offense. Second, and each subsequent time results in escalating fines for each offense up to $500, water service disconnection, as well as prosecution.

For more information on drought and how to cope with it, read our Drought Education brochure.

Tags: FHASecure, distressed homeowners, mortgage default, foreclosure, subprime loans, mortgage companies, FHA, Hope Now, conomic Stimulus Package, insured loans