November 2009

Minnesotans’ Military Appreciation Fund

Watch this excellent video.  http://www.youtube.com/watch?v=C26Yd_25BWQ

This fund gives a cash grant to soldiers and families of soldiers who have served in a recent military war zone.  Learn more at http://www.thankmntroops.org

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Support Operation Minnesota Nice

Helping Vets-one package at a time
http://www.operationminnesotanice.com

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Visit the VFW Site

Check out the VFW site for fun and resources.
http://www.vfw.org/

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Pat Metheny Letters From Home

While this isn’t the same as the movie with a similar name (which was excellent) and referenced in my recent post, this video and music still will mean something to you. I think for everyone it will mean something different. Enjoy

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Dear America-Letters From Vietnam-Must Watch

About 8 years ago my wife and I were in Chicago.  We went to China Town for Dim Sum, and on the way back decided to stop at a new museum-the National Vietnam Veterans Museum.  We were touched.  Unlike the other Chicago art museums, this one was really unique.  I have included the link to the museum below.  Since our first visit, we went back to Chicago and visited again.  On our second visit, they had a movie that would run in their viewing room.  It was entitled Dear America-letters From Vietnam.  Famous actors and actresses would read the letters sent home by vets.  They gave the letter life.  It is TRULY an amazing film.  Here is the link to the Youtube link were you can watch the movie.  They have broken it down into chunks:
http://www.youtube.com/view_play_list?p=1F909A7F347AF831&search_query=Dear+America

National Vietnam Veterans Art Museum
www.nvvam.org

1801 S Indiana Ave
Chicago, IL 60616-1308
(312) 326-0270

Open Tue-Fri 11am-6pm; Sat 10am-5pm

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Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

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ThanksGiving-Perspective

This link will take you to a cool video presentation on Thanksgiving.  Next week we will have the opportunity to reflect on all the things we have to be thankful for.
http://www.cpmsglife2.org/MSG/Pres/td/td1.html

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Solutions For Returning Vets

I just found this online today. I’m not sure if there is a Minnesota resource that is similar, but the resources page will be of great help. If you know of someone or a family who needs a little help, please share this link.
http://www.thesoldiersproject.org/

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Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

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2008 First Time Homebuyer Credit Questions and Answers

2008 First Time Homebuyer Credit Questions and Answers. Click Here

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First Time Homebuyer Credit form 5405

Download this First Time Homebuyer Credit form 5405 to claim your credit. Click Here

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Veteran’s Day-November 11th- Thank You!

For those who want to learn more about Veteran’s Day, here is the link at Wikipedia:  http://en.wikipedia.org/wiki/Veterans_Day Have you said “thank you” to a Vet?  I have. Have you ever welcomed them and wished them luck at the airport?  I have.  You know what, they appreciated it.  They appreciated that someone they’ll never see again recognized them for what they do and the sacrifices they’re making.  What they do makes our lives possible.  Freedom isn’t free, and they’re paying the bill.  Next time you see a Vet or active duty serviceman or servicewoman, Thank them.  I guarantee you’ll both feel better.

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Homebuyer Protection Alert!

Recent Federal legislation can impact your closing date. When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative timeframe of at least 30-45 days from the time of the contract acceptance would be a more realistic expectation at this time.

Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.

HVCC: Home Valuation Code of Conduct
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC:

• The appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
• A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter timeframes, conservative expectations are warranted.)
• Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.

HERA: Housing and Economic Recovery Act

HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.

Under HERA:

• No fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days.
• Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
• Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
• In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.

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MN First Time Home Buyer and Minneapolis Home Buyer Alert!

Tax Credit Expires 11/30/09 - Don’t Get Left Behind

MN Mortgage Broker, Patti Mazzara, warns MN First time home buyers not to miss out on the first time home tax credit that is about to expire.  The first time home buyer tax credit which can be used on a Minneapolis home loans when Minneapolis home buyers close before November 30, 2009.

Unless you have either been under a rock for the past 12 months or you never work with first time homebuyers (FTHBs), you are no doubt aware the clock is ticking on the IRS tax credit for FTHBs. My purpose here is to give you some additional information on what you can do to move listings, motivate buyers, and more importantly close deals.

General Points to Consider - Buyer and Seller
The expiration date of the tax credit is November 30, 2009. Close December 1, as of now, and any qualifying buyer will not receive the tax credit. With the 30th falling on the Monday following Thanksgiving, where possible work towards a closing date of November 24th. This will provide some cushion if anything pops up in the closing process that could delay a closing.

Recent legislation mandates that if the Annual Percentage Rate or APR changes outside acceptable tolerances from the initial application, some documentation needs to be re-disclosed and time needs to pass before the closing can occur. Items that can impact APR can include a change in interest rate or fees required to close. If a buyer delays locking the application and interest rates increase during the loan process, this could delay the closing. This is just one reason to plan accordingly and schedule an earlier closing date than the last possible day.

Protect your clients on both sides with extended closing dates of 45-60 days. Expectations are high that more FTHBs will be going under contract in the next month. Interest rates have fallen to levels not seen since May. The result is that many lenders’ pipelines will be swelling with people seeking to take advantage of lower rates and the tax credit. Where feasible, work to get people under contract soon and plan accordingly to allow for any processing delays that could result.

Seller Points to Consider
Many FTHBs are motivated to purchase but may lack the necessary funds to close or may fall short in qualifying income. One way to assist with either or both situations and make the property more attractive is to promote that the seller will pay to reduce the borrower’s interest rate and/or closing costs. In many cases, this will not only cost the seller less than a price reduction but also bring additional prospects to consider the house.

Most FTHBs today are choosing to obtain loans that are guaranteed by the FHA, VA, or USDA. In the case of both FHA and USDA loans, the seller can pay up to 6% of the sales price or appraised value. For VA loans, the maximum seller concession is capped at 4%.

Consider approaching all sellers today with homes that would appeal to FTHBs and get them to commit to paying closing costs and/or reducing the buyer’s interest rate. This has often worked for builders in generating sales and it can work for your sellers, too.

Sellers who do not move homes before the end of November may find themselves waiting until the spring buying season kicks in to find their buyer. Make sure sellers know they need to promote their property now or risk waiting months while potentially seeing their property’s value decline in the process.

Buyer Points to Consider
In the same light as just mentioned, many buyers may feel they lack the funds required to close. When buyers are interested in a property, encourage them to submit an offer with the concessions needed to get the mortgage approved. They may just find that the seller is willing to negotiate.

Get all potential buyers pre-approved. As the time to close will be at a premium during the months of October and November, any work that can be done to expedite the application process will be golden. Prepare your buyers by advising them not to wait until they have a home under contract. Any documentation submitted today for pre-approval should be good through the end of November. Also, with a pre-approval in hand, both you and they will know exactly what they can qualify and shop for.

If you want to help with the application process and prevent the need to possibly re-disclose loan documents, encourage your buyers to lock their interest rate early in the loan process. This will be helpful for all parties and help the buyer focus on closing and providing any additional documentation that may be needed.

Some Questions on Who May Qualify
I have received many questions regarding who may and who may not qualify for the FTHB tax credit. I am attaching to this letter some FAQs on examples I have either dealt with or read about. As always, I encourage anyone with specific questions to consult with an accountant for final clarification.

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FMLA Military Leave Law Expanded

Dear John Mazzara,

Federal Legislative Alert!

Yesterday, President Obama signed into law the Fiscal Year 2010 National Defense Authorization Act (H.R. 2647).  The new law includes an expansion of the recently-enacted exigency and caregiver leave provisions for military families under the Family and Medical Leave Act of 1993 (FMLA).

In January 2008, Congress amended the FMLA to provide:

• Exigency leave - up to 12 weeks of leave for urgent needs related to a reservist family member’s (spouse, son, daughter, or parent) call to active service.
• H.R. 2647 expands the exigency leave benefits to include family members of active duty service members.  Under current law, only family members of National Guard and Reservists are eligible for “exigency leave.
• Caregiver leave - up to 26 weeks of unpaid leave to an employee to care for a family member (spouse, son, daughter, parent, or next of kin) who is injured while serving on active military duty.
• H.R. 2647 expands the caregiver leave provision to include veterans who are undergoing medical treatment, recuperation or therapy for serious injury or illness that occurred any time during the five years preceding the date of treatment.

These previsions are effective upon enactment.

In addition to providing leave for military families, the FMLA provides unpaid leave for the birth, adoption or foster care placement of an employee’s child, as well as for the “serious health condition” of a spouse, son, daughter, or parent, or for the employee’s own medical condition.  To be eligible for the leave, employees must work in organizations of 50 or more employees and work at least 1,250 hours in a 12-month period.

Visit the web address below to tell your friends about this.  Tell-a-friend!

If you received this message from a friend, you can sign up for Governmental Affairs.

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