Archive for August, 2008
Eliminating the Down Payment Assistance Programs Like Ameridream
August 17th, 2008 Categories: FHA
Eliminating the Down Payment Assistance Programs Including AmeridreamHUD has claimed that those loans that have a Seller Contributed Down Payment Assistance have a disproportionally higher foreclosure level. According to an article on FHA Mortgage Guide, Scott Syphax, the president and CEO of Nehemiah Corporation of America, says that HUD’s “own inspector general cited as unreliable. In short, FHA undercounts the number of DPA loans by up to three times and divides that number into the number of claims it pays.”
We hear things like three times as many. We never hear actual numbers. I would like to know what the number is and how does it really compare to other loans. I have a feeling the problem is not in the DPA program but in more in the area of fraud. The reason I say that FHA is a fully documented loan. There is no stating your income. You have to prove income, rent… I think that the price is increased to compensate the cost which in turn puts pressure on the appraisers.
So let’s look at how many HUD homes (a HUD home is foreclosed FHA loan) are out there right now. Currently in the Wasatch Front MLS which covers 29 Counties less than 1/10th of a percent of the active listings are HUD homes.
So in hindsight we are going to punish those that can actually afford to make payments while tons of people made fortunes committing loan fraud. The fraud was not at this level but somehow the government seems to think this is a good idea.
I recommend that the program be modified to allow only a three percent contribution. Then the buyer and the lender have to use premium pricing to cover the loan closing cost. I believe that when the loan officer and the buyer have to pay the closing cost that the cost will be monitored and scrutinized little better.
This helps on a couple of levels, in the end the buyer owes less. Yes they may have a little higher interest rate, but that’s the price for not having a down payment. It is better to owe less at a slightly higher rate than to owe more with a little lower rate. I know the lower rate makes sense in the long haul, a borrower can always do a stream line re-fi or come up with a down payment. Besides the life expectancy of the loan is about five years. Plus prices won’t be falsely inflated to cover the down payment and the closing cost.
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Salt Lake City’s July Real Estate Stats
August 17th, 2008 Categories: Real Estate News
July’s volume is down some, which is fairly normal for July to be lower than June. Only three times since 1996 has July’s volume been higher than June’s, 1996, 1997 and 2003 so we are not seeing anything that is not normal.
|
Month |
# of Homes |
|
Jun ‘96 |
933 |
|
Jul ‘96 |
979 |
|
Jun ‘97 |
886 |
|
Jul ‘97 |
983 |
|
Jun ‘03 |
1,244 |
|
Jul ‘03 |
1,354 |
This June we had 986 # of homes close compared to July’s 1,119 closings. The average sale price dropped $5,000 from $277,000 to $272,000. Typically August closings are slightly higher than July’s we will keep an eye on that.
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Property Tax Notices
August 8th, 2008 Categories: Real Estate News
The Tax Man
You may have received your tax notice in the mail, if not it is coming. If you believe that your assessment is too high you can appeal the assessed value. If you need comparable sales to help you with your appeal please FILL IN THIS FORM. Because there are a lot of people appealing be patient, we will get them to you in about 2-3 business days.
Salt Lake County
Here is the information on how to appeal your tax in Salt Lake County. Other counties should have a similar process. I can help you with comparable sales info.
Here is the form that is used.
If the appeal is not postmarked or received in person by September 15, 2008, your appeal will be considered “late” and may not be accepted.
Provide all details such as style, quality, size, age, location, land area, etc. The more comparable the sales are to the appealed property the greater the consideration they will be given. If possible provide comparable sales evidence in a listing full print format.
Davis County
I have searched Davis County’s web site for a place to appeal and the only thing I found was this brief statement that said “if you don’t agree with your value, please come see us and/or file an appeal”. There is no mention (that I can see) on how to do that. The forms for Salt Lake and Tooele are very similar, so I would gather the same information. I am not sure what the deadline for Davis County is.
Utah County
They are a little more helpful than Davis County but not much. Here is some Information on Utah County Property Taxes. I am not sure what the deadline for Utah County is.
Tooele
Here is the information to appeal your taxes in Tooele County. The form and the process is pretty much the same as the others. The forms for Salt Lake and Tooele are very similar, so I would gather the same information. I am not sure what the deadline for Tooele County is.
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New Construction For $200,000
August 8th, 2008 Categories: Real Estate News
I usually don’t write about a particular listing on this site, but I just had to share this. New Construction in Salt Lake County for $200,000. I think it is news.
New Construction
Rambeler
2,120 Sq Ft
3 Bedroom 2 Baths
Master BedroomFull Basement Framed and Stubbed
2 Car Garage
3044 Spencer Aver Magna Utah 84044
For More Details Call Rob Aubrey 801-694-4762
Photos are from a previous model.
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Housing Recovery Act Summary
August 8th, 2008 Categories: Real Estate News
There has been so much going on in the Real Estate World.
I wanted to touch base on the H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008.
The bill is over 600 pages I am going to point out a couple of highlights.
Loan Limits
Both FHA and Conventional loan limits are now going to cap out at $625,000. These caps are based on formulas that are tied to local area median price ranges.
Another FHA item, the minimum down payment is going to increase to 3.5% up from 3%.
First Time Homebuyer Tax Credit
A $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
Frequently asked questions about the first-time homebuyer tax credit
Down Payment Assistance Programs
Only those programs that are funded directly from the seller or other party to the transaction are prohibited. Down payment assistance from family members, government programs, or charities that are not seller-funded is still permitted.
The prohibition goes into effect October 1, 2008.
Salt Lake County Grants
Currently there are grant for various cities of Salt Lake County, some are as high as $10,000
Contact me today to find out more information. Rob@Aubrey.net or call 801-694-4762
To search all listed homes by all brokers go to www.MoreUtahListings.com
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