On December 24 the Obama administration made a decision to cover an unlimited amount of losses at the mortgage finance giants, Fannie Mae and Freddie Mac through 2012. The WSJ quotes the Treasury Department as saying that, “unlimited access to bailout funds through 2012 was necessary for preserving the continuing strength and stability of the mortgage market.” In a separate article linked above the WSJ reports that the 10 year treasury is heading higher and that 30 year mortgage rates are expected to follow suit this spring as the government mortgage-purchase program comes to a close.

A December 28 WSJ article reports that, “Today the government, directly or indirectly, underwrites nine of every 10 new residential mortgages, nearly twice the percentage before the crisis.”  Regarding  Charlotte homes, if 9 of 10 loans are conforming to the limit of $416,000 then home markets which sell in this price range and below should continue to solidify, however the secondary market above this loan limit remains less certain.

Starting January 1, 2010 the federal government will fully implement the new regulations that were published on November 17, 2008.

What is RESPA? RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that must clearly disclose key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement. If you are interested in reading HUD’s  “New RESPA Rule FAQs” click here.  The FAQ’s were comprised from industry questions.
Why was RESPA created? It was created because various companies associated with the buying and selling of real estate, such as lenders, realtors, construction companies and title insurance companies were often engaging in providing undisclosed Kickbacks to each other, inflating the costs of real estate transactions and obscuring price competition by facilitating bait-and-switch tactics.

For example, a lender advertising a home loan might have advertised the loan with a 5% interest rate, but then when one applies for the loan one is told that one must use the lender’s affiliated title insurance company and pay $5,000 for the service (whereas the normal rate is $1,000). The title company would then have paid $4,000 to the lender. This was made illegal. The reason is to make prices for the services clear so as to allow price competition by consumer demand and to thereby drive down prices.

For more information on RESPA contact Helen Adams Realty at 1-800-851-5253 or visit our website.

As we move into the second phase of the homeowner tax credit consumers and real estate agents need to be reminded of just what is in this bill.  You just don’t get the $6500, there are conditions that must be met.  There are key dates involved in this process if you expect to qualify.

Some of the basics are:

If you’re married, you and your spouse also must pass the consecutive-year test.

Homes valued at $800,000 or more do not qualify.

A first-time buyer does not mean a person who has never purchased a home. The IRS defines a first-time buyer as anyone who has not owned a principal residence during the three-year period prior to the purchase.

For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse would qualify for the first-time homebuyer tax credit. However, spouses could be eligible for the repeat buyers’ $6,500 credit.

Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

Key Dates:

Nov. 7, 2009: For current homeowners, the home must be purchased on or after Nov. 7, 2009, to qualify for the credit.

April 30, 2010: Purchase and sales agreements must be dated by all parties with a date on or before Friday, April 30.

June 30, 2010: Purchases must close on or before Wednesday, June 30.

For more information contact Helen Adams Realty at 1800-851-5253 or visit our website.

The Arlington , affectionately known as the “pink building” in Charlotte’s historic SouthEnd district, is located a few blocks from center city Charlotte, as well as the quaint historic Dilworth neighborhood.  Trendy dining, shopping, entertainment and Charlotte’s Light Rail are within walking distance. 
 
In fact, one of Charlotte’s hottest dining and nightlife spots, Nikko, is on the bottom retail level floor of the Arlington.  Nikko is a sleek, modern sushi bar that turns into a posh nightclub at night that draws a beautiful crowd.  The vibe reminds me of the chic sushi bars you find in Atlanta like: MF sushi in Buckhead and Zuma sushi bar in Atlanta.  For a sushi lover, how convenient to walk downstairs to your favorite nightspot!  And even the non-sushi lovers will appreciate the hip atmosphere and fine-looking patrons.

The location of The Arlington is spectacular, and skyline views from its floor-to-ceiling glass condos are phenomenal.

Most importantly, The Arlington is priced exceptionally!  The Arlington is also an iconic building in SouthEnd, which is known to most locals as “the pink building”  (better buy one before Paris Hilton does- ha!).   The Arlington has urban appeal and dramatic skyline city vistas. Parking is also very convenient at The Arlington for residents and guest.  There is an attached parking garage with 24 hr security, which also has parking for retail. The Arlington also features a Rooftop Pool and Fitness Center.

The units at The Arlington are 1 and 2 bedrooms, all with balconies, 10 foot ceilings and floor-to-ceiling glass windows with spectacular views.  Units are currently priced from the low $160,000 range!

The Arlington is next to Charlotte’s Light Rail, Uptown, Dilworth and the Dowd YMCA.

Click here for more information and directions.

We just moved to a new Belmont home this summer after spending 19 years in Huntersville NC . We are absolutely delighted with the small town feel of Belmont and the vibrancy of the historic city of Belmont .

And we are enjoying the magic of the season with all the holiday events and attractions in the area. The Daniel Stowe Botanical Garden has over 600,000 lights throughout the gardens. I really didn’t anticipate much, but to my utter delight, the garden was twinkling with lights everywhere! The huge old tree on the drive in was lit from below and had huge white ornaments shining in the tree. It was a testament to the garden and the other treats to come. Horse-drawn carriage rides with really large and friendly horses (looked like the Clydesdale variety), a living Christmas tree covered in ferns and orchids, and lights throughout every garden walk were all there waiting for us to experience. It was wonderful and kids of all ages were in sheer delight.

The annual Christmas parade in Belmont was highly attended on a very nice and pretty warm day. The tree lighting ceremony followed. The main street of this historic town is lined with trees glistening with white lights. The restaurants and bars are that much more fun during the holidays. Some of our favorites are String Bean Market which offers a place to eat and also purchase the best meats in the area, along with a wild selection of beers and wine; Caravan Coffee and Dessert; Center Street Tavern which is actually in Cramerton and a new restaurant entry that is wonderful Center Street Tavern and the Oldstone Steakhouse; and Sammy’s.

There are lots of shops to visit on your stroll through the historic town – Happy Dog Café with their yappy hour events; the new Blythe Gallery full of antiques, art, and gifts in the beautiful old home on Main Street, and the old Belmont general store which is full of unique items.

Check out the Belmont Area Chamber of Commerce web site for a complete list of holiday events .

For more information on Belmont contact Anne Brade.

Changes are coming to FHA standards for 2010.  A bill with 27 co-sponsors HR 3706 is moving through the house to alter basic criteria for borrowers next year.  The major areas impacted are: increasing the minimum down payment from 3.5% to 5%; adding some additional fees; increasing the minimum FICO or credit score from 500 to 580-620 range.  All of these changes are designed to help the FHA balance sheet.
The Obama administration is moving to tighten underwriting standards on FHA-backed loans by increasing the amount of upfront cash homebuyers must bring to the table, raising minimum FICO scores for new borrowers, and reducing maximum seller concessions from 6 percent to 3 percent.

Larry Mullins writes:

More money down: The FHA’s low down-payment requirement—of just 3.5 percent—is one of the main reasons that agency-guaranteed loans have become so popular. Home loans without FHA backing can come with down payments anywhere from 10 to 20 percent, depending on the market, borrower, and other factors. But the FHA’s deteriorating balance sheet has triggered calls for the agency to force borrowers to put more cash down.

Higher fees: The major downside to getting an FHA-backed loan is that borrowers must pay into an insurance
pool through upfront and annual fees. The agency uses the cash to reimburse lenders in the event of default. But with its cash reserves dwindling as more loans go bad, Donovan said the agency is considering increasing the insurance premiums as well. Although the current 1.75 percent upfront insurance premium remains below its statuary cap, the annual fee is already as high as the law allows it to go.

Donovan also said the agency would—at least for now—increase the minimum credit score for new borrowers. The FHA’s current minimum credit score is 500, and the agency did not detail the new threshold

For more information please check out US News and World Report has a great blog article by Larry Mullins article.

What is Radon?

Where does it come from?

Is it everywhere?

These are just a few of the questions we hear about Radon from our customers.  One of the best sources for information about Radon is the from the Environmental Protection Agency (EPA)’s website.

What is Radon?

Radon is a cancer-causing, radioactive gas.

You can’t see radon. And you can’t smell it or taste it. But it may be a problem in your home.

Radon is estimated to cause many thousands of deaths each year. That’s because when you breathe air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today. Only smoking causes more lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high.

Where does it come from?

You can’t see radon. And you can’t smell it or taste it. But it may be a problem in your home.

Radon is estimated to cause many thousands of deaths each year. That’s because when you breathe air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today. Only smoking causes more lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high.

Radon is a radioactive gas. It comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home traps radon inside, where it can build up. Any home may have a radon problem. This means new and old homes, well-sealed and drafty homes, and homes with or without basements.

Radon from soil gas is the main cause of radon problems. Sometimes radon enters the home through well water (see “Radon in Water” below). In a small number of homes, the building materials can give off radon, too. However, building materials rarely cause radon problems by themselves.

Is it everywhere?

Yes, to some degree.  Check out the maps to look at your area.

A further breakdown in North Carolina

If you look at the cycle of our economic ups and downs, the recession we have just gone through has clearly outstayed its welcome. This current recession has lasted around 19 months, far and away the longest economic slowdown in our history.

The following is an excerpt from the July edition of Moody’s economy.com, and if you would like to read the entire report it is posted on our website, click here.

“Although house prices are not expected to stop falling before mid-2010, the pace of decline will be slower than the national average. Unlike the worst hit housing markets in the nation, Charlotte’s housing market is not oversupplied. Rather, rapidly rising unemployment and income losses are the main culprits behind the area’s weak housing market. Despite the persistence of these negative fundamentals, foreclosures have edged down recently, according to data from Realty Trac.

Median house prices also fell less than at the national level. Although these developments provide some hope that Charlotte’s housing market is headed toward stabilization, the above-average unemployment rate will come in the way of faster progress. The lack of improvement in home sales despite lower interest rates earlier this year illustrates this point.

Although job losses have abated somewhat, the recovery of the Charlotte economy will be weaker than had been expected earlier this year. Restructuring in the banking industry will result in a below-average short-term performance. The fallout from housing and global credit issues is adding stress to financial firms and the business service companies that support them. Nevertheless, Charlotte still has advantages in its highly educated workforce, mix of industries, and comparatively low living and business costs. In the long term, Charlotte is expected to outperform the U.S. Economy.”

When I first heard about “The PRED”,  which was termed by one of our agents (Buck Montague), I laughed and thought, ‘how clever’.  It’s the “Park Road Entertainment District”, he said.   It’s the area where Park Road, Montford Drive and Selwyn Avenue form a tight little niche of hot spots for late 20 and 30-somethings.
 

Then I started thinking, hey, he’s right – that’s where I like to go!   New Charlotte hot spots have sprouted in the “PRED” – like Brazwells, Andrew Blair’s, Good Food on Montford, Angry Ales – and of course the old school favorites:  Sir Edmond Halley’s,  Selwyn Avenue Pub,  Moosehead Grill,  Park Lanes bowling alley, Sushi 101, and all the shops at Park Road Shopping center. 
 

Perhaps it’s the more intimate coziness of these smaller, pub-like venues that draw the crowds, the friendly staff that appreciates the locals, the great quality of food-for-the-dollar, or the fact you can walk home to nearby condos and homes in Myers Park and down the Woodlawn & Park Road corridors. 

After 15 years of living in Charlotte, I have come to the conclusion that smaller, more intimate bar/ restaurant venues do well in this city.  Take the long-standing Sir Ed’s and Selwyn Pub for example, or Vinnie’s on South Blvd.  Maybe it just comes down to the “Cheer’s philosophy” – sometimes you want to go where everyone knows your name. 

Oh, and by the way, we are marketing some pretty awesome  condos in the “PRED”  from $160,000′s- The project is called “Preston Flats” – and like 2 blocks from all the cool stuff.  Check it out on this virtual tour: 

 http://tours.tourfactory.com/tours/tour.asp?t=563675&idx=1

U.S. mortgage rates dropped to a record low, breaking through a previous record set earlier this year, a closely watched mortgage survey showed today.

The lowest mortgage rates in decades and high affordability have also helped the hard-hit housing market find some footing this year after a three-year slump.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, fell for a fifth consecutive week, averaging 4.71 percent for the week ending Dec. 3, down from the previous week’s 4.78 percent, according to a survey released on Thursday by home funding company Freddie Mac.

Freddie Mac, the second-largest U.S. mortgage finance company, started the survey in 1971.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

The sharp drop in rates provides an opportunity for consumers, who may want to spring into action, if forecasts by economists ring true.

Cameron Findlay, chief economist at LendingTree.com in Charlotte, North Carolina, said mortgage rates will be sharply higher next year.

For current mortgage information click here for our partner Bank of America’s rates.