Brevard County Florida - Blog

Smart Real Estate News & Commentary by Chris McLaughlin, February 9, 2010

Fannie and Freddie failing

Freddie Mac and Fannie Mae were among the first big financial institutions to
receive massive federal bailouts after the financial crisis hit in 2008.
Government officials have been racing to fix bailed-out car makers and banks and
are pushing to reshape the financial-services industry. But Fannie and Freddie
remain troubled wards of the state, with no blueprints for the future and no
clear exit strategy for the government.  Nearly a year and a half after the
outbreak of the global economic crisis, many of the problems that contributed to
it haven’t yet been tamed. The U.S. has no system in place to tackle a failure
of its largest financial institutions. Derivatives contracts of the kind that
crippled American International Group Inc. still trade in the shadows, and
investors remain heavily reliant on the same credit-ratings firms that gave AAA
ratings to lousy mortgage securities. Fannie and Freddie, for their part, remain
at the core of a housing-finance system that inflate
d a dangerous housing bubble.

After prices collapsed, sending shock waves around the world, the federal
government put America’s housing-finance system on life support and it has yet
to decide how that troubled system should be rebuilt.  On Dec. 24, Treasury said
there would be no limit to the taxpayer money it was willing to deploy over the
next three years to keep the two companies afloat, doing away with the previous
limit of $200 billion per company. So far, the government has handed the two
companies a total of about $111 billion. The government is “running Fannie and
Freddie as an instrument of national economic policy, not as a business,” says
Daniel Mudd, who was forced out as Fannie Mae’s chief executive in September
2008 when the government took control.  Other housing experts contend that
prolonged government intervention will make it more difficult and costly to
eventually wean the companies off government support. “The more aggressively we
continue kicking the can down the road, the larger th
e losses become and the harder it becomes” to address the companies’ future,
says Joshua Rosner, managing director at investment-research firm Graham Fisher
& Co.  As mortgage delinquencies rise, Fannie and Freddie are required to set
aside more capital to cover anticipated losses. Each quarter, if their revenues
are insufficient to meet those financial needs, the Treasury has to kick in more
money.  With delinquencies still rising, the outlook is grim. At Freddie, 3.87%
of single-family mortgages were at least 90 days past due at the end of
December, up from 1.72% a year earlier. Fannie is worse: 5.29% were 90 days past
due in November, up from 2.13% a year earlier.

Olick - Obama shifting from HAMP to HAFA (short sales)?

Diana Olick picked up on something Seth Wheeler, Senior Advisor to the Treasury
Department, said last week.  According to Olick:  “In discussing the Obama
Administration’s Home Affordable Modification Program (HAMP), which is arguably
less successful than anyone intended, Wheeler made a comment leading some to
believe that the Administration may be shifting focus from modifications to
another program which simply gets troubled borrowers out of their homes as
quickly and cleanly as possible.  Wheeler told ASF members and guests, ‘Short
sales, deeds in lieu are other ways to prevent foreclosures to help achieve
stability [in housing].  Modifications are only for a certain subset of
distressed homeowners.’”  Olick points to the widely acknowledged failure of
HAMP and suggests that Wheeler’s mention of the Home Affordable Foreclosure
Alternatives program (HAFA) is indicative of a shift in emphasis for the Obama
administration. 

HAFA specifically targets short sales and deeds in lieu of foreclosure.
According to the directive: Servicers must consider possible HAMP eligible
borrowers for HAFA within 30 calendar days of the date the borrower: Does not
qualify for a Trial Period Plan; Does not successfully complete a Trial Period
Plan; Is delinquent on a HAMP modification by missing at least two consecutive
payments; or requests a short sale or DIL.  According to Olick:  “My guess is
that last one is the most popular.  The HAFA program offers incentives in this
program “upon successful completion of the short sale” or Deed in Lieu. They
include borrower relocation assistance of $1500, a servicer incentive of $1000
to cover administrative and processing costs and investor reimbursement of $1000
for subordinate lien releases. That’s when the investor allows up to $3000 in
short sale proceeds to go to subordinate lien holders.  ‘It is my belief that
the success of HAFA will be vastly greater than HAMP,’ sa
ys Mark Hanson, a mortgage consultant in California.  ‘Going forward, figuring
out exactly what this means for foreclosures, REO, house sales, housing
inventory, values, bank balance sheets, second mortgages, RMBS prices, the
builders, the mortgage insurers, and sentiment is where the focus will be.’”

Tax rate balloons

Companies in at least 35 states will have to fork over more in unemployment
insurance taxes this year, according to the National Association of State
Workforce Agencies.   The median increase will be 27.5%. And employers in places
such as Hawaii and Florida could see levies skyrocket more than ten-fold.  Many
of these hikes happened automatically as prolonged joblessness triggered state
laws governing their unemployment insurance systems. But at least seven states
voted to raise their taxable wage bases, the level of income subject to
unemployment tax. And another 10 are looking at upping the wage bases or tax
rates.  In addition, employers pay federal unemployment taxes. If states don’t
repay their federal loans, businesses could see their this federal tax go up as
well in coming years, said Rich Hobbie, executive director of the National
Association of State Workforce Agencies.  Higher taxes dampen employers’ ability
to hire new workers, crimping any nascent economic recove
ry. Companies pay taxes on each employee on the payroll.  “There’s no doubt it
discourages hiring,” said Douglas Holmes, president of UWC-Strategic Services on
Unemployment and Workers’ Compensation, an employers’ trade group. “In fact, it
leads to increased unemployment.”  Texas, Hawaii, and Florida are the hardest
hit.

Consumer credit falls

According to the Federal Reserve, total consumer borrowing fell a seasonally
adjusted $1.8 billion, an annual rate of 0.8%, to $2.456 trillion in December
2009.  Economists predicted a decline in total borrowing of $10 billion in
December, according to a consensus survey from Briefing.com. November saw a
downwardly revised 10.6% decrease, or $21.8 billion, in total consumer
borrowing.  Sean Maher, associate economist at Moody’s Economy.com said he
expected November to be revised upward, but instead it was even more negative –
so December’s more upbeat data “doesn’t mean we’re out of the woods.”  For all
of 2009, consumer debt dropped by 4% to $2.46 trillion from $2.56 trillion in
2008.  Revolving credit, which includes credit card debt, fell in December by
$8.5 billion, or an 11.7% annual rate, to $866 billion. 

But nonrevolving credit, which includes car and student loans, bucked the trend.
It rose by $6.8 billion, or a 5.2% annual rate, to $1.59 trillion.  The data’s
recent volatility and large revisions make it difficult to make predictions,
Maher noted, but he expects revolving credit will fall substantially in the
coming months but will start to taper off around June.  “Consumers are still
finding it tough to get credit, but there are some signs we’ve reached a
bottom,” Maher said. The credit crunch should begin easing now, he said, “with
breakeven around the middle of the year — and we’re looking for a pretty quick
rebound by the second half of 2010.”

DSNews.com - Home ownership at lowest point in a decade

Home ownership in the United States hit a 10-year low during the fourth quarter
of 2009. According to data released by the Census Bureau last week, the
homeownership rate fell to 67.2% at the end of last year.  That’s down from 67.6
percent the previous quarter and 67.5 percent one year earlier. It represents
the lowest percentage of Americans who owned a home since the second quarter of
2000. Homeownership has been on a steady downward slope since 2006, when it
became evident that more and more borrowers were put into loans they couldn’t
afford and housing woes began to eat away at the government’s long-time push to
make the American Dream a reality for anyone that wanted it.

Regionally, homeownership rates are highest in the Midwest (71.3 percent) and in
the South (69.1 percent) where housing is considered relatively affordable. They
are lowest in the West (62.3 percent) and the Northeast (63.9 percent) where
home prices are on the higher end of the spectrum.  Relative to a year ago, the
biggest decline, though, was in the South (down 0.7 points) and in the West
(down 0.4 points), where you can find the foreclosure hotspots of Florida,
California, Arizona, and Nevada.  The Census Bureau also reported that the
percentage of vacant homes in the U.S. rose from 2.6 percent in the third
quarter of last year to 2.7 percent in the fourth. All told, there were 2.09
million homes sitting empty and available for sale at the end of last year, up
from 1.99 million three months earlier, the agency said. As Bloomberg explained,
this number includes both listed properties and those that banks have
repossessed and have not yet listed.

Now on to our real estate investing educational section…

Sooner or later every short sale investor encounters a sale in danger of dying.
Fortunately, with a few simple steps it’s possible to dramatically reduce the
risk of spoiling a sale.

1. Get Smart. Prequalify and prepare from first contact. Everyone has an “A”
list and a “B” list when it comes to prospective buyers but it’s still necessary
to put things into proper perspective before spending a lot of time and effort
on dead-ends. Remember, the internet helps to eliminate and reject prospects
through the use of well placed questions and comments.  For example, asking a
simple question such as “Is there another home you wished you had bought?” can
explain a lot; price range, comfort zone and readiness just for starters.

2.  Value-Driven. Tough economic times have led most buyers to become more price
conscious than ever; it’s no longer enough to simply show a few over-priced
homes to prep for an attractive in-house alternative…instead, be prepared to
demonstrate real value with low risk. Buyers want to know they won’t lose money
in the long run by buying a given house or property.

3. Don’t Shut Doors on any Deal. Some buyers are just the opposite - they have
money and when presented with the right opportunity - are willing to go
substantially above and beyond their traditional budget. Don’t automatically
exclude higher priced properties for those that have the means to make ends meet
at a larger than life level. In this situation, recognize the price is not the
prime motivator but rather the “right”  property. Determine what constitutes a
desirable deal then make it happen.

4.  Time Right. Timing is everything but it takes time to learn how to
distinguish valid help from harassment when working with prospective clients.
Too soon and you can quickly cool even the hottest prospect…too long of a
delay and you risk having others step in to fill your shoes.

5. Preferred Status. Everyone likes to feel special and as a short sale
professional it is your duty to given individualized attention to every
prospect….of course, some clients are just a bit more special than others
especially when it comes to sealing the deal. Find a few ways to express that
little extra something when working with your “A” list clients; meet at a local
coffee shop then foot the bill (don’t worry - it’s a legitimate write-off) or
schedule exclusive “preview” showings to the most promising prospective buyers
before the big announcement. Remember, it’s the thought that counts not
necessarily the size of the status symbol.

6. Teach sellers to think like buyers and vice versa. Yes, it’s easier said than
done but it’s all in the wording. By teaching sellers to act like buyers and
buyers to act like sellers you assure they will present and demand more
reasonable offers. Think of it as a small investment that pays big dividends at
closing time.

7. Have a contingency plan in place. Every good investor identifies the “out”
long before buying into the given investment - it’s no different with short
sales. Know when and how you plan to exit the property then have a contingency
in place should something go amiss. It’s one additional layer of protection that
allows short sale investors to sleep easy by knowing they have plenty of outlets
for every property.

Priced for quick contracts in the Low $200,000s ……Just a quick summary of my newest SHORT SALE - PreForeclosure listing at 275 Maple Drive, Satellite Beach, FL 32937 in the Cresthaven Subdivision - just south of Cassio and a short walk to the beach . This nice home with a great Screened 30′ Pool and fenced backyard is located within Short A1A driving to Cocoa Beach or to Indialantic and Melbourne Beach ….. Enjoy your own paradise here in Brevard County Florida. Don’t be bashful … time is right to make this your new home …

Short Sale - move in ready … MAKE OFFER and be patient…. Beautifully updated 3/2 Beachside Pool Home. New in 2001: Soffetts, Water Softener. New in 2002: Exterior Paint and Pool Resurfaced. New in 2003: Double paned Vinyl/windows, Gutters, 14 SEER AC, Pool Screens. New in @005: Master Bath, 16″ tile, Garage Door opener, New in 2007: Hot Water heater. Just Move On in and enjoy this lovely home just walking distance to the beach. Best School Districts around - SHORT SALE so Make Reasonable Offers Only - and be patient.

This nice home is just a short walk to the beach …. and in one of the best school districts in Brevard County Florida, ie.. children go to Satellite High School … CHECK IT OUT.  More Pictures will be taken in the next few days and a Virtual Tour will be created …. first showings will occur on 2/15 or after …  CHECK OUT THE MLS LISTING BELOW:

http://www.brevardmls.com/brv/maildoc/a005bQ6942.html

Comments: The below letter is being sent to homeowners who may be behind on their mortgage payments …. and may need consultation assistance to understand their options.  Their options are many, but it depends totally on their individual situation.  If you are a seller who is behind … or soon will be … behind on your mortgage payments, and you are feeling helpless in your current situation, I can help … just give me a call at 321-446-9440 or email: DVCongdon@aol.com.   All of my assistance is completely FREE to the homeowner - Let me know if I can help in anyway..                   

 To: Whomever this may concern                                                                                                                         02/06/2010 If you’re at least 30 days behind on your mortgage,  then your mortgage company is willing to consider completely forgiving a significant portion of your mortgage debt (provided you go through the proper process).  The portion they forgive, under H.R. 3648, is NO longer counted as personal income and CANNOT be taxed by the federal government! 

So if you are behind on your mortgage, I’d like to introduce you to the light at the end of the tunnel…Program 3648.  Program 3648 is a free nationwide initiative whose mission is to: 

1. Help homeowners receive the mortgage debt forgiveness this new law encourages.
2. Rescue as many homeowners from public foreclosure as possible.

 You’ll be pleased to know that under PROGRAM 3648: 

1. You receive all services, consultation, and information absolutely FREE.  Guaranteed!
2. You’re assigned a certified program administrator to do all the work for you.

 I am actually the certified program administrator in Brevard County Florida assigned to do all the work for you.  My team is currently helping hundreds of homeowners receive the debt forgiveness they need to stop a potential public foreclosure! 

Now if you’re like me, you’re skeptical when someone claims to offer everything for free.  These days, most people claiming free services have hidden costs that pop up somewhere.   Well I’m pleased to inform you that is not the case with Program 3648.  At no time will you ever be charged one penny.  

As you can imagine, we have limited capacity to help homeowners for free.  So those that call right away are usually the only ones that get helped. 

I cannot emphasize enough that time is of the essence.

The longer you wait the less likely I can help you! 

Call or Email now and I’ll get right to work for you!!

321-446-9440 or Email: DVCongdon@aol.comYours to count on,  

Dave Congdon, Broker AssociateIslands International Realty, Inc.

Certified Program 3648 Administrator

SFR – Certified Short Sale & Foreclosure Resource 

P.S.   Regarding H.R. 3648, the President stated, “My administration has taken strong steps to help homeowners avoid foreclosure…The provision will increase the incentive for borrowers and lenders to work together…So this bill will create a three-year window for homeowners to…pay no taxes on any debt forgiveness that they receive.”

Smart Real Estate News & Commentary by Chris McLaughlin, February 5, 2010

Home prices bottomed?

According to the PMI Mortgage Insurance Risk Index, the risk of home prices
dropping even lower in the next two years is stabilizing in most Metropolitan
Statistical Areas (MSAs).  The index charts the chance that home prices will
rise or fall along a yearly timeline. To do this, PMI analysts translate a
percentage, which predicts the probability that house prices will be lower in
two years, into a Risk Index score. A score of 100 means there is a 100% chance
that the prices will be lower in two years for that MSA.  According to the
latest Index, risk may have peaked for many MSAs, though the average risk score
remains “very high.”  In Q309, risk dropped in 22 of the top-50 MSAs. Of all the
384 MSAs measured in the Index, 212, slightly more than half, had decreases in
risk scores.

But even though risk declined in the majority of MSAs, the average risk score
stayed above 50, dropping for the first time in over a year from 58.3 to 57.5. 
MSAs in Florida, California, Nevada and Arizona continued to have the highest
risk scores in the nation during Q309. All MSAs in Florida, Nevada and Arizona
have risk scores in the 90s. But California showed some improvement. Of the 28
MSAs measured in California, 25 saw decreases in risk scores from Q209 to Q309. 
North Dakota, South Dakota, Nebraska and Vermont continue to show minimal risk.
North Dakota leads the nation with the lowest risk score of 1.6.  The leading
MSAs in terms of risk correspond closely with the MSAs holding the highest
foreclosure rates in the RealtyTrac Year-End 2009 Foreclosure Report.

Unemployment rate down, more jobs lost

The Labor Department says the good news is that unemployment fell to 9.7% in
January, much lower than economists’ forecasts of 10%. The bad news is that the
U.S. economy lost 20,000 jobs in January.  The Labor Department also released an
annual revision of U.S. payrolls on Friday, using data that wasn’t initially
available. Losses for 2009 alone came to 4.8 million jobs, more than 600,000
more than previously estimated. The revision showed the economy has lost 8.4
million jobs since the start of the recession in December 2007 — 1.4 million
more job losses than initially reported. The payroll number for December was
revised to a net loss of 150,000 jobs. The government had previously indicated
that 85,000 jobs were lost in December.  But the government said the tepid job
growth initially reported in November was actually much stronger than previously
believed. Jobs rose by 64,000 in November, up from an initial estimate of 4,000.
It is the only month in the past two years in
which jobs grew. 

January’s report offers hope that employers are starting to reverse course and
may start adding jobs soon. Aside from November’s gain, January’s job losses
were the smallest since the recession began and are down from the huge loss of
779,000 jobs in January 2009.  The manufacturing sector added jobs for the first
time since January 2007. Its gain of 11,000 jobs was the most since April 2006. 
Retailers added 42,100 jobs, the most since November 2007, before the recession
began. Temporary help services gained 52,000 jobs, its fourth month of gains.
That could signal future hiring, as employers usually hire temp workers before
permanent ones.  The average work week increased to 33.3 hours, from 33.2. That
indicates employers are increasing hours for their current workers, a step that
usually precedes new hiring.

Rent free for years

Diana Olick points to a new trend among homeowners.  The percentage of borrowers
who are delinquent on their mortgages but paying their credit card bills on time
is growing, to 6.6 percent in the third quarter of 2009 from 4.9 percent in the
same quarter of 2008, according to a new study by Chicago-based TransUnion. At
the same time, the share of borrowers that are delinquent on credit cards but
current on their mortgages slipped to 3.6% from 4.1%.  In an interview with
Reuters, the author of the study, Sean Reardon, confirmed, “This goes against
conventional wisdom and that has always been that, when faced with a financial
crisis, consumers will pay their secured obligations first, specifically their
mortgages.” 

As Olick points out, “most troubled borrowers have already figured out that
there are so many forces in motion trying to save homes from foreclosure that
they can easily miss one, two, five or six mortgage payments before even getting
a call from the bank; then, they’ve got many more monterhs of negotiations over
modifications, short sale options, even the foreclosure process itself, insuring
they will have a roof over their heads for a good long time.  Home building
Analyst Ivy Zelman said that in some Florida counties the courts are so backed
up with foreclosures that it can take up to three years to get one home through
the system.  That’s three years of living rent-free, which frees up plenty of
cash to pay the Visa bill.”  The study, based on a database of 27m consumer
credit records, found the magnitude of delinquency is significantly higher in
the lowest credit scoring segment, opposed to delinquency in the total market.
The payment priority shift to credit cards over
mortgages is even more pronounced in sand states like California and Florida,
which experienced a more severe housing bubble effect, TransUnion said.

US debt ceiling raised

The House of Representatives voted yesterday to raise the debt limit by $1.9
trillion, raising the debt ceiling to $14.3 trillion, a new high for the amount
of debt for the U.S. As recently as 2001, the U.S. debt was only at $5.7
trillion, but it exploded after Sept. 11, 2001, amid record spending by the Bush
and Obama administrations.  If Congress doesn’t hike the debt ceiling, the U.S.
would be unable make good on Social Security and Medicare payments.  The Senate
approved the debt limit increase in mid-January on a 60-40 party-line vote.  The
House vote was a close one, at 217-212. All Republicans and more than 30
Democrats voted against raising the debt ceiling - moderate and
fiscally-conscious Democrats were leary of voting for the bill.  The debt
ceiling increase is part of a broader bill that would impose so-called “PAYGO”
rules on the House. In other words, the House would have to pay for all tax cuts
or programs it creates so they are budget neutral.  In theory, anyw
ay.

Mortgage rates slightly higher

Freddie Mac’s weekly survey put the average rate for a 30-year fixed-rate
mortgage (FRM) at 5.01% with a 0.7 origination point for the week ending
February 4, up from last week’s average rate of 4.98%.  It’s the first
week-over-week increase in 2010.  A year ago, the 30-year FRM was 5.25%.
Bankrate.com’s weekly survey of large banks and thrifts put the 30-year FRM at
5.15%, up from 5.13% last week.  Freddie put the 15-year FRM at 4.4%, up from
last week’s average rate of 4.39%, but still down from last year’s rate of
4.92%. Bankrate.com put the 15-year FRM at 4.55%, up from 4.54% last week. 
Freddie Mac vice president and chief economist Frank Nothaft said despite the
increase, rates remain relatively stable amid other positive developments,
including recent increases in pending home sales and mortgage applications. 
“Even more encouraging news came from the Federal Reserve’s Senior Loan Officer
Opinion Survey, which reported that banks have generally stopped ti
ghtening standards on most types of loans in the fourth quarter of 2009, with
commercial real estate as the exception,” Nothaft said.  “However, banks have
yet to unwind the tightening that occurred over the last two years. Moreover,
substantially fewer banks expected credit quality to deteriorate over the coming
year,” he added.  Freddie said the five-year Treasury-indexed hybrid
adjustable-rate mortgage (ARM) averaged 4.27%, up from last week’s rate of
4.25%. Last year, the five-year ARM averaged 5.26%. Bankrate.com’s average rate
for five-year ARMs was 4.56%, up from 4.54% last week. Freddie’s survey of the
one-year Treasury-indexed ARM put the average rate of 4.22%, down from last
week’s rate of 4.29% and last year’s 4.92%.

Now on to our real estate investing educational section…

Friday File - 15 Minute Resolution for the Week

Whether you know it or not, everyone has at least three budgets; a financial
budget, a time budget and a mental budget. As a short sale investor you have
probably spent plenty of time calculating your financial budget but what about
your time and mental budget? This week make a point of spending 15 minutes to
plan and prepare for the week ahead. Not only will you save time and money
(really they same thing) but most people find they feel less stressed and more
refreshed at the end of the week.

1. Record then reward the time of your life. Do you know where the days, hours
and moments of your life go? If not, start keeping track of how much wasted time
you spend on mundane, non-productive activities. Decide which can be eliminated
then move on to step two…delegate. Be sure to eliminate as much as possible
prior to delegating or else you risk spending even more time and money on
non-productive activities. Once you have eliminated and then delegated as many
routine, mundane and non-productive activities as possible it’s time to reward
yourself by setting aside at least a portion of that time toward achieving
another life goal. It could be to take up a new hobby or spend additional time
with family and friends; whatever the reason allow it to reconfirm the benefit
to be derived from pursuing short sales.

2. Establish a mental budget. Sure, some people enjoy eating, thinking and
dreaming about work or investments but for others it is simply a means to an
end. Either way, establish a mental budget to determine a rational and
reasonable return on your mental investment. Whether it’s ten hours a week or
ten hours a day, find the right balance between work and play to create the life
you really love. Not only will you appreciate short sales rather than resent the
effort but it’s likely to show in your negotiations and communication with
others.

3. Review your financial budget to balance all three. Make sure the time and
emotional investment you are putting into short sales is adequately rewarded by
establishing a minimum thresh-hold for each transaction. For example, if you
know a project is likely to require x number of hours and you need to make at
least $500 per hour then only accept projects that will meet or exceed your
given criteria. Not every deal - even a good deal - is the perfect fit for every
person. By aligning your needs, demands and expectations with a firm return it’s
possible to spend less time while creating every expanding deals that satisfy
all your criteria without sacrificing sanity.

Almost everyday of the week these days I get asked these questions…. if I can help … just let me know…. Being a member of the Program3648 program puts me in a great position to help you regardless of your circumstances … and remember… “only blue cheese gets better with age”… so call or email me sooner rather than later for issues that you may have with your home here in Brevard County Florida.    

Forbearance

Under a forbearance agreement, your lender may allow you to reduce or suspend payments for a short period of time. At the end of the forbearance period, you will begin making regular payments plus an additional amount of the past due payments each month until you are caught up.

PRO: You remain in your home. A temporary reduced or suspended payment provides time needed to save money, pay off other bills, find employment or additional employment, or recover from injury or illness.

CON: At the end of the forbearance period, your payment will be higher due to the past due amounts owed. Your mortgage payments could be 20% - 25% higher for a period of 1-year or more.

Loan Modification

If you can make payments on your loan, but don’t have enough money to bring your account current, your lender may be able to change the terms of your original loan to absorb your delinquent payments and make the payments more affordable. Your loan could be permanently changed by adding the missed payments to the back end of the existing loan balance, lowering the interest rate or making an adjustable rate fixed, or extending the number of years you have to repay your loan.

PRO: You remain in your home.

CON: Because of additional debt such as credit cards, car payments, medical bills, and student loans, most people do not qualify for a loan modification. If you purchased your home with little or no money down or your home has depreciated in value at a rate at or near the national average, you may not quality.

Short Sale

If you cannot bring your loan current, afford to make payments moving forward, or are unable to sell the property for the full amount of the loan, your lender may accept less than the amount owed as full payment.

PRO: Under the terms of a short sale, your lender may forgive your mortgage debt in its entirety according to the terms outlined in The Mortgage Debt Relief Act of 2007. Fannie Mae has announced a reduced mandatory waiting period to establish credit history to 2 years after the completion of a short sale. This mandatory waiting period after a short sale is lower than the required 5-7 years following a foreclosure.

CON: You must sell your home.

Deed-in-lieu of foreclosure

If you are unable to bring your loan current or sell your home in a reasonable amount of time, your lender may agree to have you voluntarily transfer the deed to the property to them to help avoid the impact of a foreclosure on your credit rating.

PRO: By voluntarily transferring the deed, you save your lender tens-of-thousands of dollars in foreclosure proceedings. If you are willing to do this, Fannie Mae has reduced the mandatory waiting period to establish credit history to a minimum of 4 years. This mandatory waiting period after a deed-in-lieu of foreclosure is lower than the required 5-7 years following a foreclosure.

CON: Although a deed-in-lieu of foreclosure may have less impact than an actual foreclosure on your ability to establish homeownership in the future, if you are going to cooperate with your lender and take a proactive approach, a short sale is generally the better option.

We recently had an inspection ordered to find a leak in a customer’s 5 year old roof. The customer stated they have had several attempts by roofing companies to find and repair the leak. There were attempts to fix the leak and the leaking continued during heavy storms with wind driven rain. We were called and a roof inspection was ordered. After inspecting the roof, it was appearent that the leaking was coming from around the area of the chimney. After inspecting the repairs and performing hose tests, it was concluded that the leaking was not related to the roof at all. The chimney was wood frame constructed with a brick veneer. While inspecting the chimney, several voids or missing brick mortar areas were found throughout the chimney. After we conducted some hose tests on the chimney, the leaking immediatley started and water was visible leaking into the attic and on the top portion of the Living room ceiling. Remember to never over look the obvious. Unfortunately our customer spend a lot of money on roof repairs and the situation could of been solved by simply patching small holes in the chimney brick veneer mortar.

Surfside Inspection Co.

321-449-9009

surfsideinspections@live.com

Smart Real Estate News & Commentary by Chris McLaughlin, February 2, 2010

Pending home sales level off

According to the National Association of Realtors, pending home sales have
leveled from a market swing driven by response to the home buyer tax credit. 
The Pending Home Sales Index increased 1.0 percent to 96.6 from 95.6 in
November, and remains 10.9 percent above December 2008 when it was 87.1. In
November, the monthly index had fallen by 16.4 percent from surging activity in
preceding months.  Lawrence Yun, NAR chief economist, said it’s important to
recognize how the tax credit is skewing market data. “There are easily
understood swings in contract activity as buyers respond to a tax credit that
was expiring and was then extended and expanded,” he said. “These swings are
masking the underlying trend, which is a broad improvement over year-ago levels.

December activity was the fifth highest monthly tally in two years.”  The PHSI
in the Northeast rose 2.3 percent to 76.1 in December and is 14.9 percent higher
than December 2008. In the Midwest the index increased 5.2 percent to 86.9 and
is 8.7 percent above a year ago. Pending home sales in the South rose 2.2
percent to an index of 98.4, and are 5.5 percent higher than December 2008. In
the West the index fell 3.8 percent to 119.9 but is 18.6 percent above a year
ago.  Yun projects the extended and expanded tax credit will encourage 2.4
million households to take the credit in 2010. “While new-home sales will remain
low due to a lack of construction, existing-home sales are projected to rise to
around 5.6 million in 2010,” Yun said. Last year there were 5.16 million
existing-home sales.  He added that one of the greatest benefits of rising sales
will be firming home prices.

Son of TARP

Touted last week in Obama’s State of the Union address, the plan is the latest
incarnation of a proposal the president first floated in October. President
Obama will call on Congress Tuesday to recycle $30 billion of the remaining
Troubled Asset Relief Program (TARP) funds into a new government lending program
offering super-cheap capital to community banks that boost their small business
lending this year. The initiative targets banks with assets of under $10
billion, which collectively account for more than half of the nation’s small
business lending, according to White House estimates. Those banks would be able
to borrow money from the Treasury at a dividend rate as low as 1% if they use
the cash to make more small business loans this year than they did in 2009.  The
first draft of Obama’s plan, announced three months ago, involved lending TARP
money to community banks to use for local business loans. But community bankers
reacted warily to the plan — they had little inte
rest in taking capital from a program that has drawn so much criticism.

TARP’s extensive regulatory requirements were also a turn-off.  Obama’s new
proposal asks Congress to divert TARP funds into an entirely new lending
program. The administration hopes that scrapping the TARP taint will make the
offering more attractive to bankers.  Banks with less than $1 billion in assets
would be able to receive capital infusions of up to 5% of their assets, and
banks with assets of $1 billion to $10 billion would be eligible to access
investments totaling 3% of assets. More than 8,000 of the country’s 8,400 banks
would be eligible to participate under these terms, according to government
estimates.  The dividend rate for the capital would start at 5% and decrease by
1% for every 2.5% increase in small business lending the bank shows compared to
a 2009 baseline. The dividend rate could drop as low as 1% for a community bank
that increases its small business lending balance by 10%. That rate would stay
frozen for five years, allowing the bank to pay the Treas
ury back gradually.  Maybe it will work and maybe it won’t, but if I were a
Bank President I’d want nothing to do with a president who encouraged banks to
borrow from him and then regulated and taxed them to death while attacking them
for “greed.”

U.S. manufacturing up

U.S. manufacturing expanded in January at its fastest pace since 2004 but
consumers increased their spending only slightly in December, worried by job
prospects and the state of the economy.  The Institute for Supply management
said its index of national factory activity rose to a reading of 58.4 from 54.9
in December, handily beating economists’ median forecast of a rise to 55.5.  A
reading above 50 indicates growth in the sector. The prices paid component was
at its highest since August 2008.  Economists said gains were driven by
businesses replenishing inventories, which fell sharply during the recession. 
“It is telling me that the first half of 2010 is going to be supported by the
restocking,” said Stephen Gallagher, chief U.S. economist at Societe Generale in
New York.  “We have a 3 percent to 3.5 percent growth range for the first half
of 2010 and based on these numbers we might be underestimating the growth.”  The
U.S. economy grew at a 5.7 percent annual pace in the
fourth quarter, its fastest clip in six years, driven by a sharp slowdown in
the rate at which businesses reduced stocks of unsold goods, the government said
on Friday.  But while the ISM employment component hit its highest level in
nearly three years, some economists said the month-on-month gain was fairly
modest.  “All of the employment numbers are showing that the huge losses in jobs
are well behind us but we are not gaining in jobs either,” said Jay Mueller,
senior portfolio manager at Wells Capital Management in Milwaukee.

Time for a government exit?

The Obama administration’s bailout plans and stimulus packages are working to
keep the economy from collapsing, but they are also creating an environment in
which private investors in the securitization sector are reluctant to come back
en masse. During a panel at the American Securitization Forum 2010 in
Washington, titled “Restoring the Private Securitization Market and Unwinding
Government Support Programs,” moderator Karen Weaver, global head of
securitization research at Deutsche Bank asked: “Do you think the
[securitization] market is ready for the [government’s] exit?”  Ish McLaughlin,
a managing director at Citigroup, said the investor base appears smarter and
more understanding of the securitization landscape, though the investor base is
significantly deteriorated. “80 percent of volume is bought by 20 percent of the
investor base,” he said. “It’s too narrow a base to build a house on. And, if
you can’t get your hands around the product now, you p
robably aren’t going to get you hands around it.”

Paul Colonna, president of fixed income at General Electric Investment
Corporation added that the homebuyer tax credit helped stimulate the market, but
it is no longer needed as long as banks get recapitalized in order to begin
offering credit in a meaningful way.  “We have to start thinking about what the
exit looks like. We’ll see rates rise, but at the end I don’t think rates are
the problem,” Colonna said. “Loan mods are a big issue, you won’t see investors
back in the market until we see what will happen with this.”  McLaughlin added
that the money is there for creating a private market securitization market. 
When private-label RMBS does come back to market, it will have to stand up under
significant review. The industry is undergoing a sweeping reform of due
diligence in order to increase transparency in the securitization process.

MBA - Commercial Loan Maturity Volumes

The Mortgage Bankers Association (MBA) today released the results of its 2009
Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey
indicates that the volume of commercial and multifamily mortgage debt maturing
in 2010 and 2011 is relatively low.  Of the $1.45 trillion balance of
outstanding mortgages held by non-bank investors, only 13 percent of the total
($183.9 billion) will mature in 2010 and 7 percent ($99.8 billion) in 2011. 
“Commercial and multifamily mortgages tend to be long-term loans, often for ten
years or more,” said Jamie Woodwell, MBA’s Vice President of Commercial Real
Estate Research.  “The fact that a disproportionate share of commercial and
multifamily mortgages were made in 2005, 2006 and 2007 means that for most
investor groups, only a fraction of the balance will be maturing in the next
couple of years.” 

Commercial/multifamily mortgage maturities vary significantly by investor group. 
Just 2 percent ($4 billion) of the outstanding balance of multifamily mortgages
held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in
2010.  Life insurance companies will see 7 percent ($17.5 billion) of their
outstanding mortgage balances mature in 2010.  Among loans held in CMBS, 12
percent will come due in 2010, including 7 percent of the $650 billion of loans
in fixed-rate conduit CMBS and 72 percent of the $54 billion of loans in
floating rate and large-borrower CMBS.  Thirty-two percent ($69 billion) of
commercial mortgages held by credit companies and other investors will mature in
2010.  MBA’s 2009 survey collected information directly from servicers on the
maturity years of more than $1.5 trillion in outstanding mortgages, including
$1.45 trillion of non-bank commercial/multifamily holdings.

Follow Up: FHA Waives 90 Day Flipping Rule

With a glut of foreclosures plaguing the nation, the Federal Housing Authority
(FHA) is temporarily removing restrictions on investors who buy and sell homes
within 90 days.  “FHA borrowers, because of the restrictions we are now lifting,
have often been shut out from buying affordable properties,” FHA Commissioner
David Stevens wrote in a statement last month. “This action will enable our
borrowers, especially first-time buyers, to take advantage of this opportunity.” 
The FHA is only lifting the ban for one year and there are rules.  You can’t
flip the property for more than a 20 percent profit without getting two
appraisals in most cases and the transaction must be at “arms-length” so friends
don’t get together to drive up the home value and then snag some unknowing
buyer.  The FHA program, like the Fannie Mae 3.5% rebate that we talked about
here yesterday, are designed to get rid of the glut of foreclosures on the
market, but some people are wary of them.  Diana Olick sa
ys, ” Look, I get it.  The United States saw roughly 2.8 million foreclosure
filings in 2009, and many of those properties are still sitting on the banks and
on Fannie and Freddie’s collective books. As continued foreclosures push
inventories higher, they push home prices lower. 

Now on to our real estate investing educational section…

Devil Made Me Do It

They say the devil is in the details but nowhere is that old adage more true
than when discussing real estate. In fact, some would argue if you haven’t
encountered a few situations that could only be explained by “the devil made me
do it” then you simply aren’t making enough offers. From time to time everyone
is prone to make a few mistakes but learning a lesson from others is the first
way to cut losses and move forward. The following are some of the most common
short sale mistakes and mishaps.

Playing dumb. Novice short sale investors sometimes are under the mistaken
impression that buyers and sellers prefer to deal with less experienced - and
therefore less intimidating - people. While that may be superficially true, the
reality is a bit more complex. Buyers and sellers simply do not want to feel
like they are being taken advantage of; when given the choice, they still prefer
a knowledgeable (but trustworthy) professional. Avoid playing dumb. Plain and
simple, it tends to backfire just when you least expect it. Remember, playing
dumb comes in a variety of shapes and sizes to match any short sale deal; from
conveniently leaving out pertinent details to “forgetting” to share certain
facts or figures. Bottom line - build a relationship and put it into writing.

Getting greedy. Chances are you know someone who has tried this at some time or
another; certainly every real estate agent has encountered a situation where the
sellers attempts to accept two or more offers simultaneously. Unfortunately,
short sale investors frequently find sellers that think accepting more than one
offer increases the odds of a quick closing without ever realizing it works in
exactly the opposite manner.

Axe the Ex. Never assume property gained from a divorce or other familiar
situation is totally free and clear simply from what the seller says. The title
company often requires the ex to sign away any rights to the property before the
sale will go through. While there are ways around it, the process can be costly
and time consuming. Make sure the paperwork is in place prior to finalizing the
deal to avoid delays.  Closely related to the issue of divorce is the
terminology regarding “tenants in common” versus “joint tenants” for properties
in probate.  Joint tenancy provide for the right of survivorship whereas tenants
is common requires a court to transfer ownership.

Added Insurance. Although most short sale properties are sold “as is”, investors
can put an ace in the hole by adding an additional layer or protection for
future buyers simply by purchasing a home warranty. These inexpensive add-on’s
typically cost $350-$450 per year to cover most major appliances, plumping and
even central air conditioning. It’s a small investment that more than pays for
itself in today’s tough economic times. Buyers like the idea of not having to
shell out additional funds in the event something goes wrong and short sale
investors benefit from a strong differentiator that costs very little.

Just a quick update on the latest listing that just came onto the market with Islands International Realty, Inc, Satellite Beach, FL - listing agent is myself - Dave Congdon.

Oceanfront Melbourne Beach home - located in the “South Beaches” of Brevard County Florida…. Listing price is $949,000, located about 5 miles north of the beautiful Sebastian Inlet, with easy commuting distance to Vero Beach and other areas south in Indian River County, or just about 10 minutes south of the Melbourne Beach, Fl Publix shopping Center ….

This home is located on the beautiful Direct Oceanfront with 75″ of direct ocean frontage…. BEAUTIFUL Beaches - just walk down the steps … Best Beaches in Brevard County, FL are in this area.  The home is in the Floridana Beach Subdivision. This home was originally built in 1977 - but totally destroyed by the hurricanes of 2004 - and was rebuilt from the foundation up in 2005… SO VIRTUALLY EVERYTHING - with a few minor exceptions are new in 2005. INCLUDING: New Electrical Wiring, New Roof, New Plumbing, All new fixtures, All new Tile/carpets in 2005, Two like new AC units - one for upstairs and one for down.  This home has 2200 sq ft of living space under air, 1+ Car Garage with work benches, Beautiful Heated Pool with Hot/Tub-Spa in frontyard Courtyard - totally surrounded by Privacy CBS walls … 3 full bedrooms (2 on the second level) and 1 on the first level, Formal Living Room, Den/Office on Ground level, Huge Master Suite with Master bath, 3rd large bedroom on second level with porch overlooking the pool area …. AND Family Room/Dining Room Combination with Wood Burning Fireplace - all rooms on the ocean slide with sliders to the total wrap around Deck… and all rooms on Ground level with SLiders to the Back Yard Patio area … all with walk down access to the Ocean beaches… Slide that catamarand directly into the ocean …. MOST - with only a couple of exceptions all sliders and windows are hurricane grade impact glass … Surround Sound wired throughout the entire home … and an overlook galley Kitchen with tile counters, breakfast bar and large pantry … overlooking the fireplace and family room/dining room combo.  OCEAN VIEWS from nearly everywhere… Beautiful.  ALL FURNITURE is also negotiable … not included in the price … listed today at $949,000…. WOW… the lot on this home is worth itself around 700k OR MORE … even this economy… the old adage applies “GOD does not make any more oceanfront lots these days”…. so check it out… A link to the first virtual tour is below…  All showings require 24 hour notice … home is occupied by the owners … CALL ME at 321-446-9440 or email me at DVCongdon@aol.com if I can help in anyway. 

Virtual tour: http://www.PropertyPanorama.com/89432

Smart Real Estate News & Commentary by Chris McLaughlin, February 1, 2010

TARP and HAMP failed to halt foreclosures

In his latest quarterly report to Congress, special inspector general Neil
Barofsky said that the Troubled Asset Relief Program, or TARP, has failed to
boost bank lending as well as halt the spread of foreclosures — two key aims of
the sprawling program.  “Whether these goals can effectively be met through
existing TARP programs is very much an open question at this time,” Barofsky
said in the report.  Since Congress enacted TARP, lending to both consumers and
businesses has continued to decline.  Earlier this month, the Treasury
Department reported that the 22 banks that got the most aid from the
government’s various bailout programs have actually cut their small business
loan balances by $12.5 billion since April.

The Obama administration did propose a joint program between the Treasury
Department and the Small Business Administration in October to make capital
cheaper for community banks that commit to increasing their small business
lending, but three months later the government is still drafting guidelines for
that initiative.  Barofsky, whose office has been closely tracking the evolution
of TARP, also criticized the Obama administration’s Home Affordable Modification
Program.  Even as Treasury allocated $35.5 billion towards that
foreclosure-prevention program as of the end of last year, only 66,500
homeowners have received permanent modifications, with another 787,200
homeowners in trial modifications.  There is no sign that the rate of
foreclosures is slowing down anytime soon. Earlier this month, RealtyTrac, the
online marketer of foreclosed homes, reported that foreclosure filings surged to
a record 3 million in 2009, up 21% from 2008.  There was at least one bit of
good news
from Barofsky’s latest report however. He acknowledged that while the ultimate
cost will still be “substantial” for American taxpayers, it will be less than
originally estimated.

New $3.8 trillion budget

Today President Obama will reveal a $3.8 trillion budget for 2011.  The budget
proposes new tax breaks and incentives for small businesses that hire new
employees or boost wages, which would cost $30 billion. There would also be tax
breaks for small businesses that make new investments.  The budget includes a
one-year extension of Making Work Pay tax breaks, delivered as a part of last
year’s stimulus package. This credit resulted in slightly higher paychecks for
110 million families, according to the White House.  It would make permanent tax
cuts passed during the Bush administration for all except high-income
households.  Other spending hikes will include: $17 billion more for Pell Grants
to help students pay for college and $6 billion for “clean energy technologies.”  

The administration would also spend $734 million to install 1,000 new full body
scanners at airports.  The budget also calls for a relatively small three-year
cap on non-defense discretionary spending. Critics, like the budget watchdog
group OMB Watch — which called the move “emptying a sea with a teaspoon” –
point out that the cap is on a small part of the total budget, leaving room for
big increases on war, military and national security spending. In fact, the
president’s budget will call for billions more in spending increases for
defense, diplomacy and homeland security agencies, even though House Speaker
Nancy Pelosi said last week that some defense spending should also be subject to
the freeze.  White House budget chief Peter Orszag claims that the White House’s
guiding philosophy is: “Don’t make the situation any worse.” Shame they didn’t
think that one up before…

DSNews.com - Fannie Mae seller assistance program

Fannie Mae has announced a temporary seller-assistance program under which
people purchasing a property through HomePath, Fannie Mae’s REO disposition
operation, will receive up to 3.5 percent of the final sales price, which can be
applied toward closing costs or used to purchase appliances for their new home. 
The offer is available to any owner-occupant who closes on the purchase of a
property listed on HomePath.com before May 1, 2010, the company said. In
addition, many Fannie Mae-owned properties are eligible for special HomePath
Mortgage and HomePath Renovation Mortgage financing, with as little as 3 percent
down.  “Attracting qualified buyers to the market and reducing the inventory of
vacant homes is critical to stabilizing neighborhoods and helping the market
recover,” said Terry Edwards, EVP of credit portfolio management for Fannie Mae.
“Many families are taking advantage of the federal homebuyer tax credit to buy a
new home so this is a great time for Fanni
e Mae to offer some additional help.” 

According to the GSE’s most recent quarterly filing, Fannie Mae acquired 98,428
homes through foreclosure during the first nine months of last year and sold
89,691 REO properties during the same period. But at the end of September,
Fannie Mae still had 72,275 REO properties on its books, marking a 7 percent
increase year-over-year.  Furthermore, Fannie Mae’s monthly summary shows
significant growth in seriously delinquent single-family mortgages held or
guaranteed by the company. Up from 2.13 percent in November 2008, loans three or
more months behind in payments or in the foreclosure process soared to 5.29
percent in November 2009.

Obama and his job count

In the ongoing circus of the White House’s elusive “jobs saved or created,”
administration officials claimed Saturday that its stimulus plan directly funded
599,108 jobs in the fourth quarter.  The figure is based on about 160,000
reports from state, local and corporate recipients that have spent stimulus
money to keep teachers in schools and cops on the street, as well as to rebuild
roads, launch green energy initiatives and fund other projects. That spending
represents one-fifth of total stimulus spending to date.  In total, the economic
stimulus program has boosted employment by 1.5 million to 2 million jobs, the
president’s chief economic adviser said in mid-January. But unlike the figure
reported Saturday, that number is derived from a mathematical formula based on
how much money has flowed out the federal door and includes both the direct and
indirect hires.  A total of $263.3 billion has been paid to states, contractors
and other recipients or distributed in tax breaks
. Recipients’ reports cover $57.9 billion of that spending, according to the
White House.  Since it was enacted last February, Republicans have repeatedly
attacked the $862 billion effort as a colossal waste of taxpayer dollars that
has not created meaningful, long-term employment.  “Americans deserve more than
fictitious claims that don’t match the reality of what they are going through,”
said Kevin Smith, spokesman for House Minority Leader John Boehner, R-Ohio.

Fannie Mae hits 5.29% delinquency rate

Fannie Mae reported a serious delinquency rate for its mortgage portfolio of
5.29% in November 2009, the latest month of data, the highest in recent memory. 
That number grew from 4.98% in October and more than doubled the 2.13% in
November 2008, according to its monthly summary.  For December 2009, the entire
Fannie book of business grew at an annualized rate of 9.7% in December to
$3.2bn. For all of 2009, the book grew 4.2%.  Fannie’s mortgage-backed
securities (MBS) and other guarantees totaled $2.82bn in December. It issued
$55.3m in MBS – up from $40.3m in November – bringing its total issuance for the
year to $807.8m.  Fannie’s gross mortgage portfolio grew at an annualized rate
of 37.6% in December and stood at $772.5m at the end of the year.  Wilshire
Credit Corp., the mortgage servicer bought by IBM in October, is set receive a
substantial servicing portfolio from Fannie and catch the servicing rights to a
portion of these delinquencies. In fact, the mortgage
  finance industry is abuzz over a rumored change to the way Fannie and its
brother GSE Freddie Mac would assign and manage mortgage servicing rights.

Now on to our real estate investing educational section…

Bridging the Gap

It is estimated over 95% of millionaires made their money from real estate. On
the other hand, the average Realtor earns less than $40,000 annually. Why the
discrepancy? Obviously it’s quite possible to make stellar returns from real
estate yet each and every year plenty of people barely make ends meet even while
working at it full-time.  Yet research shows that success in real estate doesn’t
require full-time work, a large private income or many of the other trappings of
success typically associated with wealth creation from other venues. In fact,
plenty of part-time investors far outperform fulltime real estate associates
each and every year. Learn the secret of their success with these quick tips:

1. Accept Success - Seriously! Have you ever stopped to contemplate how easily
most people accept failure or fate versus those that take responsibility for
their own success? It’s quite remarkable when you stop to think about it.
Understand that everyone is capable of making a success from short sale
investments - but few people actually do so not because they are helpless but
because they wait for help rather than forging their own path. When in doubt
about what to do, first find a mentor and then…simple do it. IF it’s wrong you
will learn from the experience but if not, you have made progress either way.

2.  Work at home when possible. Set a schedule then stick to it. Don’t allow
distractions to clutter up your productive short sale investing time. Hire
childcare if needed, find a reputable and reliable virtual assistant and then
focus time and energy on building the foundation for your short sale empire by
automating as much as possible.

3. Dump dumb rules. Simply your life and investing goals as much as possible.
Sit down and think about how much time it takes you to argue with your spouse
about some minor situation versus finalizing a deal or making offers on upcoming
short sales. Re-evaluate what rules and roles dominate your day then eliminate
those that don’t enhance your life.

4. Learn to say NO. Stop apologizing and don’t try to do it all yourself. It’s
not in your best interest (or that of your family and friends) to tackle more
than you are able to deal with on a regular basis. Leave space for down-time as
well as impromptu activities. Short sale investments are especially prone to
last minute maneuvers where those that win aren’t necessarily the most prepared
but simply those in the right place at the right time.

5. List- Buy. The more you list the more they buy and vice versa…the more you
buy the more you have to list as a short sale investor. It’s a numbers game so
take action and automated it as soon as possible.  Increase your target
marketing efforts on a regular basis; once you reach the desired number of
homes, begin to switch your strategy to include more affluent clients.

MY COMMENTS: I recently have become a “Certified Program 3648 Administrator”, and hence have teamed up with a company that does full time Debt Relief services as an integral part of my services to be provided to my clients.  If you are at least 30 days behind on your mortgage, then your mortgage company is willing to consider completely forgiving a significant portion of your mortgage debt (provided you go through the proper process).  The portion they forgive, under H.R. 3648, is NO longer counted as personal income and CANNOT be taxed by the Federal Government. 

So if you are behind on your mortgage, I’d like to introduce you to the light at the end of the tunnel .. Program 3648. Program 3648 is a FREE nationwide initiative whose mission is to:

1. Help homeowners receive the mortgage debt foregiveness this new law encourages.

2. Rescue as many homeowners from public foreclosure as possible.

You will be pleased to know that under PROGRAM 3648:

1. You receive all services, consultations, and information absolutely FREE to the homeowner. Guaranteed!

2. You will be assigned a “Certified Program Administrator” (LIKE ME for Brevard County Florida) to do all the work for you.

INTERESTED?  Call me at 321-446-9440 or Email at DVCongdon@aol.com.  You can also check out more details about the PROGRAM 3648 Program below … or at http://www.Program3648.org … IF interested in learning more…call me at the numbers above to set up a consultation at your home at our mutual convenience.  AGAIN - ALL SERVICES ARE FREE to the homeowner for this service.

About Program 3648

The federal government enacted H.R. 3648, the Mortgage Forgiveness Debt Relief Act, to help stem the tide of foreclosures by removing the tax burden resulting from debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with short sales. H.R. 3648 has been extended through 2012 under The Emergency Economic Stabilization Act, H.R. 1424. The Obama Administration has continued to pursue the foreclosure problem with the Financial Stability Plan that helps homeowners and lenders find solutions and alternatives to foreclosure.

Program 3648 is a privately sponsored nation-wide initiative to reach out to homeowners who are struggling with their mortgage payments and provide them with the information, guidance, and actual work that is required to avoid foreclosure. Certified Program 3648 Representatives volunteer their time to assist as many homeowners as possible and all services provided by Program 3648 are always free for every homeowner.

Our website, www.Program3648.org, provides you with the information, tools, and resources you need to understand the programs and options that are available to you. You can also link-up with a local Certified Program 3648 Representative that can discuss your specific situation and work directly with your mortgage company, on their behalf, at no charge.

Our mission at Program 3648 is to help millions of homeowners avoid foreclosure and take advantage of the programs that have been instituted to help them. We realize that the only way that we can accomplish this goal, is though a ground army of volunteers that are willing to go directly to homes, hold homeowners hands, and walk them through the process of working with their lender, and proactively remedying the mortgage problem.