Madison Again on Top 10 List

Kiplinger has named Madison, WI 7th of the top 10 places to live.
http://ping.fm/4HLgX

HUD $8000 Tax Credit Rules Revised

HUD News Release
May 29, 2009
HousingZone
WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. 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 deal with an oversupply of housing.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration’s homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA’s current market share, it’s estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

Speed and Alcohol Enforcement in Madison

During the weekend of May 29th, 30th and 31st, The Madison Police Department is participating in the National Highway Traffic Safety Administration sponsored alcohol and speed enforcement grants that are coordinated through the Department of Transportation, Bureau of Transportation Safety. As a participant in these grant initiatives, additional Madison police officers will be on patrol during this period with the objective of detecting and apprehending vehicle operators who are violating speeding laws and who are under the influence of an intoxicant and/or controlled substance. Officers will also be enforcing seatbelt violations as part of the “Click It or Ticket” campaign.

Although law enforcement efforts are an important part of public safety, we rely heavily on the cooperation of the public to be aware of, and to follow, all traffic laws. The Madison Police Department supports the “Zero In Wisconsin” campaign and believes that we all can make a difference.

Please remember to drive safely and to “buckle up.” The Madison Police Department also reminds motorists that state law requires that vehicles yield right-of-way to pedestrians in crosswalks. Remember – do not drink and drive!

Capitol Neighborhoods Announces 2 New Programs

One of the really cool things about living in the central city is the vibrant community groups that seem to thrive here.

One of them is the Capitol Neighborhood, Inc.   If you want to get plugged in to what’s happening both on a cultural and quality of living standpoint in central Madison, joining this group is a must.

Visit their website by clicking here.

I just wanted to share 2 upcoming events that might be of interest to my readers:

1)  Architecture of Downtown Madison-May 28 at 7 p.m.  Gate of Heaven in James Madison Park.  Jim Drager, deputy preservation officer with the WI Historical Society will help us recognize architectural styles, discuss notable Madison architects and lead a discussion on new ways to think about the places we think and work. 

2)  Annual Meeting featuring Madison’s Cultural Plan-June 18 at 7 p.m. at Monona Terrace Community and Convention Center.  Former Madison alder Noel Radomski will touch on a number of topics including the cultural plan that the city will soon undertake.  In addition awards will be presented for exemplary service and contributions to the health of our downtown neighborhoods.  There will also be elections of district representatives to the Capitol Neighborhoods Executive Committee.

Why Do Some Houses Always Sell Fast?

This past week my team closed on a listing we took in late April. What’s extraordinary in that? At first blush absolutely nothing. In fact getting a buyer and seller to closing is part of what we get paid to do in this business.

At the closing table both Buyer and Seller were very amicable with each other. In fact the Buyers are moving to Madison from the area of the country the Seller is moving back to. They even discovered they know some of the same people. (Small world).

Anyway at closing I was thinking. This house was 82 years old. This new Buyer is going to be the 4th family to own this house. Other than when the original owner built the house in the 1930’s and subsequently lived in it for 60+ years, I’ve been involved in EVERY SALE of the HOUSE since then! That’s right. When the original Owner’s estate had it for sale, I was working with a buyer who wanted that neighborhood. The house came up for sale through the trust department of one of our local banks. I got my Buyer’s through the house right away. They liked it but being 1st time homebuyers, were hesitant as to all the delayed maintenance the home displayed from years of an elderly homeowner living there. The price was more than right and they finally pulled the trigger.

That was 1998. They lived in the house until 3 years ago. During that time they did wonderful restoration to the home including adding a new kitchen, peeling off the masonite siding and residing with a “shingled” effect (perfect for the cottage style of the house). They also furnished it incredibly well and added a 1/2 bath to the main floor.

When it came time for them to move on, they called us to list the home. The 2nd day after it was placed on the market, Devery (my team member) and I were at the home staging it for the virtual tour pictures. There was as car eerily stopped out in the street in front of the house. The “For Sale” sign had just been place minutes before. My cell phone rang and it was an agent from one of our local companies. She stated she had out of town buyers who were sitting in front of the house at that moment and wanted to see it. She was with other clients and couldn’t get there at that moment, would we be willing to show it to them? We said of course and proceeded to meet the buyer and his mother.

He was just back from deployment and coming to Madison for law school. He fell in love with the house and a full price offer was faxed to us before the day was over.

That was 3 years ago. This spring, this owner called us to discuss listing the house for him. He was finishing up law school and had gotten married. His next stage in life and new wife were already living on the west coast. We placed the home on the market slightly higher priced than almost everything else in the neighborhood.  That was  Thursday and by Saturday, darned if we didn’t receive a full price offer from the 1st showing.

That’s the closing that occurred this past week. So there you have it, 1 house, 82 years, 4 owners, 3 sales for our team.

My question is this–What is it about some houses that they sell so quickly?

Central District Newsletter For April 2009

Each month the central district of the Madison Police department publishes a newsletter.  It’s full of helpful information regarding public and personal safety.

Click here to see latest issue.

Keller Williams Realty Dominates Industry Survey

AUSTIN, TEXAS (May 19, 2009) —According to two of the industry’s most comprehensive annual surveys, Keller Williams Realty brokerages continue to defy the pervasive downturn in the industry by growing and expanding.

RISMedia’s Power Broker Report and REAL Trends’ REAL Trends 500 rank the largest residential real estate brokerages in the U.S. based on transaction sides and sales volume. This year, Keller Williams Realty had more brokerages on both lists than any other real estate brand.

In the REAL Trends 500 report, Keller Williams Realty dominated, with its offices comprising more than a quarter of the entire list. Of all the major brands represented in the report, Keller Williams was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.

Within RISMedia’s Power Broker Report, Keller Williams Realty again had the largest majority on the list – accounting for 35 percent of all the brokerages listed. The report also ranked Keller Williams Realty #1 in number of agents and total closed transactions.

“These results prove what we already knew – Keller Williams Realty is experiencing the next phase of our growth during this shift,” said Mark Willis, CEO of Keller Williams Realty, Inc. “Our agents and offices are capitalizing on the opportunities presented in today’s market and powering forward.”

“Two years ago, when the market began to shift, we mobilized to make sure our people would have the training, support and technology to tackle the market and they have truly blown us away with their accomplishments,” he added.

Within the past 18 months, Gary Keller, co-founder and chairman of the company, released his latest book, SHIFT: How Top Real Estate Agents Tackle Tough Times which became the No. 1 selling real estate book for agents in 2008. The launch also included a nationwide seminar tour which is slated to visit more than 50 cities throughout North America by the end of the summer. Other initiatives included the delivery of affordable health care options for KW associates through the new Keller Williams Health Providers Program and the launch of the company’s commercial arm, KW Commercial.

“When we do what we do best – coach and train our associates to higher levels of personal productivity and profitability – growth takes care of itself,” said Mary Tennant, president and COO of Keller Williams Realty, Inc. “Keller Williams Realty, the franchise company, didn’t rank on these lists – our people did.”

“We’re confident we’re in businesses with some of the most talented and focused individuals in the industry and we are so proud of all they’ve achieved,” added Willis.

This Month In Real Estate for May 2009

Wisconsin Housing Prices Fall in Quarter 1

Date: May 12, 2009

MADISON, WI – Wisconsin home sales and median prices both fell in the first quarter of 2009 compared to that same quarter last year according to data just released by the Wisconsin REALTORS® Association (WRA). The lingering national recession caused unemployment in Wisconsin to increase significantly during the first three months of the year, resulting in the housing market drop, according tot he WRA. “The housing market doesn’t operate in a vacuum,” said Michael Mulleady, Chairman of the Board of the WRA. “The national economic environment drives Wisconsin’s economy and that in turn drives our housing market.” Mulleady noted the national economy shrank by more than 6 percent in the first quarter, causing Wisconsin’s unemployment rate to jump from 5.9 percent in December 2008 to 8.5 percent in March 2009.

Click here for the rest of story….

See what’s happened in Dane County Wisconsin by clicking here….

When a Short Sale Doesn’t Happen

There’s a pretty intricate process we go through when we work through a short sale to a successful closing. Not only do we have to get agreement from any underlying mortgage holders but quite often there may be judgements and liens against the property that have to be released in order to close on the property.

I had that issue today. Got an accepted offer, got the lender to agree to a reduced pay off in order to close. There were 6 outstanding liens against this seller,thus then tied to the property. I got on the phone last week and started contacting the lien holders. I negotiated, on behalf of the seller, to get releases from each of these lien holders in order to be able to close today.

I received verbal acceptance from each on the terms and conditions that would allow us to close. I sent release agreements to each. I received them signed by the lien holder on every one but 1. Today, 1 week after they verbally agreed to a payoff of some dollars to release their lien rights on this property, they decided it wasn’t enough money. They refused to sign the release and thus the closing didn’t occur.

Here’s where this gets frustrating. You see the property is in the process of being foreclosed upon. Once the foreclosure happens, chances are this lien holder, being in 7th position in the line, will not see any dollars for their position.

I was able to get them some payment at this point had they released their lien rights today.

We got the buyer and seller to agree to a 1 week extension. I’m hopeful reason will prevail over the weekend and the lien holder will answer their phone on Monday and agree to the release.

Never a dull moment.