2/27/09

Today's Topics:

• $75 Billion Plan to Fight Home Foreclosure
• The New Stimulus Bill

NY TIMES:
Obama Unveils $75 Billion Plan to fight Foreclosure
http://www.nytimes.com/2009/02/19/business/19housing.html?_r=1&nl=pol&emc=pola1

CNN:
Republicans, analysts question Obama's foreclosure plan...
http://www.cnn.com/2009/POLITICS/02/18/foreclosure.plan/index.html?iref=mpstoryview

Track your tax dollars on stimulus bill Web site...
http://www.cnn.com/2009/TECH/02/18/stimulus.web.site/index.html

MSNBC:
How the stimulus bill affects you.
http://articles.moneycentral.msn.com/Investing/Extra/how-the-stimulus-bill-could-affect-you.aspx

1/15/09

Today's Topics:

• FHA Loans
• An Optimistic Investing Approach in 2009

As I have been saying for quite some time now, this is a great time to buy a home. Dropping prices, a large inventory of homes, and low interest rates have created a unique opportunity for those who are ready to buy. And, for those who are staying in their current homes, now is the perfect time to refinance. Read on for valuable information for the New Year...

FHA LOANS
Thanks to Sandy Richards of The Richland Group at CFS Mortgage for the following information regarding
FHA loans:

FHA (Federal Housing Administration) is a part of HUD (Housing and Urban Development) and insures home loans for lenders so that borrowers can get better rates, low down payment, low closing costs and easy credit qualifying.

Currently, FHA loans require 3.5% down for a purchase and 1.75% of the loan amount for Up Front Mortgage Insurance. In addition, there is a factor of .55 per month for monthly mortgage insurance.
Here is an example:

Purchase price: $200,000
Down Payment: -7000
Base loan amount $193,000
Up Front MIP 3377
Total loan amount: $196,377 5.25% rate Principal & Interest payment: $1084
5.964% APR includes mortgage insurance in calculation, no points

Some of the great aspects of FHA are the acceptance of gift funds from a relative for down payment and/or closing costs and they allow 6% of the purchase price as seller contribution towards settlement costs.

FHA wants to see a two year consistent job history in the same line of work. They will allow college to serve as part of that as long as borrower can provide degree that is related to current employment.

FHA will also allow lower FICO scores, usually down to a 620 mid score. Bankruptcy needs to have been discharged at least three years prior to obtaining a new FHA loan. This also applies to foreclosure, short sale and a Deed in Lieu of Foreclosure. Borrower will need to have re-established credit after any of these events listed.

There are also FHA loans that will help borrowers who are purchasing homes that need to be rehabilitated. The first type will allow for small items such as paint, appliances and flooring. If there is anything beyond this sort of rehab, there is a loan available but is quite extensive, similar to a construction loan so contact an experience FHA loan consultant for more details on this loan.

FHA also allows for refinances of many sorts, but he most popular for borrowers is the Streamline Refinance which does not require an appraisal. The costs are capped are minimal to borrower and the loan is very easy to do. There may be circumstances that prevent this loan from being done, in which a Streamline with appraisal and credit can be done, or if the borrower has equity and wants to take cash out to pay debt, there is a full FHA refinance loan that is available.

The best way to see if an FHA loan is right for you or someone you know is to speak to an experience FHA loan consultant. For more information, you can contact me, Sandy Richards at 602.999.2406.


AN OPTIMISTIC INVESTING APPROACH IN 2009
RISMEDIA, January 12, 2009-If you're like most folks, you're entering 2009 clutching your wallet, keeping an anxious eye on your stock portfolio, and bracing yourself for the next dose of economic bad news that's surely coming down the pike. Yes, if you believe everything you hear and read, we're heading straight for financial apocalypse. But what if you decided to opt out of the doom & gloom club? What if, instead, you decided to look for treasure hidden amid the ruins? Choose the latter approach in 2009, says financial expert Eric Tyson, and you'll open yourself up to some great investment opportunities.

"Unfortunately, most often, you can find only the worst case scenario in the nightly news," says Tyson, author of Investing For Dummies®, 5th Edition (Wiley, 2008, ISBN: 978-0-470-28965-5, $21.99) and coauthor along with Robert Griswold of the upcoming Real Estate Investing For Dummies®, 2nd Edition (Wiley, March 2009, ISBN: 978-0-470-28966-2, $21.99). "That's because bad news sells. What you aren't hearing or seeing is that 2009 will bring some great investment opportunities in two areas you might not expect-real estate and the stock market. You simply need to change your perspective a bit."

In other words, by taking an optimistic investing approach during the upcoming year, you can actually profit from the sluggish economy.

Tyson explains how:

1. Take advantage of low prices… Instead of looking at deflated housing and stock values as a bad thing, look at them as opportunity makers. Because prices have fallen, these investments are more affordable and you can buy now and watch current values increase over time. Take real estate, for example. Recent data out from the National Association of Realtors (NAR) shows that their home affordability index (HAI) is at the best level in more than three decades. The current HAI value of 141.8 means that a family earning the national median family income has 141.8% of the income necessary to qualify for a conventional loan covering 80% of a median-priced existing single-family home. So if you have good credit and can put down at least 10-20% of the price, investing in real estate is actually more viable an investment than it has been in years.

"The same is true of stock prices," says Tyson. "Because of the downturn, many strong companies have stocks that are undervalued. If you buy these stocks now, as the market stabilizes and things improve, values will increase and your portfolio will be the benefactor."

2. …But look before you leap. In other words, do your due diligence before you plunk down the cash, says Tyson. Some companies' stocks are low for a reason. Before choosing which companies you would like to invest in, you have to do the research and make sure that they are fundamentally strong. Where real estate is concerned, there are still areas where properties are overvalued-parts of the Pacific Northwest, for example-so you'll have to do the research to make sure you buy in an area where prices have already fallen in line with market fundamentals.

"These caveats are just reminders that you shouldn't go into any investment without doing your homework first," says Tyson. "Making irresponsible investment decisions is what created the problems we are having. By researching your options, you will be able to make sounder, more profitable decisions."

3. Be careful where you get your advice. Misinformation abounds. There are a lot of pundits and so-called financial experts out there who are giving questionable advice and are making terrible predictions, says Tyson. What's more, their past track records indicate that we should take their words with a substantial grain of salt.

"Financial pundits are a dime a dozen right now," says Tyson. "Be very careful about whose advice you follow and whose economic predictions you buy into. For what it's worth, two experts I do respect are professors Burton Malkiel, author of the classic A Random Walk Down Wall Street, and Jeremy Siegel, author of the excellent Stocks for the Long Run. Their work and books have stood the test of time-decades, not months or years-and I know I've profited handsomely from things I've learned from them."

4. Keep thinking long-term. If you make investments thinking you are going to see quick returns, you will be disappointed. Where real estate is concerned, the days of buy it, flip it, and sell it quickly for a huge profit are over. What you can do is buy property now-particularly in areas where it's now properly valued and even undervalued-and watch its value accrue over time as the market stabilizes and improves. You should take the same approach to any stock investments you make.

"It might be tempting to want to time the markets, but just because you get one market turn right doesn't mean you'll see the next one coming," notes Tyson. "Even the best investors make mistakes, some of them huge ones, regarding future timing moves. When it comes to stock investments, slow and steady wins the race."

"It's true that 2008 was a sobering year," admits Tyson. "And now we hear from many pundits and experts that the upcoming one could be as bad or even worse. But if you invest calmly and rationally, rather than reacting emotionally, 2009 can be remembered as the year you made some smart, long-term financial decisions. I think if you take advantage of what's going on in the real estate and stock markets right now, you could be setting yourself up for a very profitable future."

Eric Tyson, MBA, is one of the nation's best-selling personal finance book authors and has penned five national bestsellers (he is also the only author to have four of his books simultaneously on BusinessWeek's business book bestseller list).

For more information, visit www.erictyson.com.

If you haven't visited pookbellini.com lately, please do! In addition to great real estate information, you'll find some helpful links there:

* Arizona Department of Education
* Arizona Golf
* Arizona Guide
* Arizona Hiking
* Cactus League Baseball
* Community Links
* Current Gasoline Prices
* Current Road Conditions

***** GO CARDS!! *****
Game time: Sunday, January 18th at 1:00

Warmest Regards,
Pook

10/18/08

What Goes Up, Must Come Down; Refinance Boom Might Not Follow Bailout; and Recycling With a Payoff

Dear Friends,

Perhaps you noticed that I now have two designations after my name. In an earlier E-News I told you about the e-PRO technology designation that I received in June. Now I am excited to tell you about my newly earned CERTIFIED NEGOTIATION EXPERT (CNE) designation. The designation recognizes advanced negotiation training and skill development in handling the complexities normally associated with real estate transactions. I am thrilled to have had the opportunity to get this advanced training and look forward to using my expertise to help my Buyers and Sellers achieve their desired goals.

Warmest Regards,
Pook

What Goes Up, Must Come Down

What Goes Up Must Come Down -- It's no secret that real estate is undergoing a painful correction. Though housing cycles aren't all alike, experts say in the long run there is a basic pattern.

Refinance Boom Might Not Follow Bailout

Refi Boom Might Not Follow Bailout -- A dramatic drop in mortgage rates has motivated some homeowners to wonder if they should refinance. A better question might be: Are they able to refinance?

Thanks to local lender Rob Kanyur for sharing the following info about recycling!

Recycling With a Payoff It's safe to say that recycling plays a significant role in most of our lives, and is very rewarding when we consider the ecological impact we collectively produce by our efforts to recycle, reduce, and reuse. But, what if I told you that "going green" could be financially rewarding as well? The following are some easy ways to make a little "green" for yourself, just for doing the little things you already do to lessen your ecological footprint. Like Money in the Bank In some states, RecycleBank.com is changing the way we take out the trash. This company takes the recyclables you already wheel out to the curb each week, and pays you for it by the pound – depositing points into a "bank account" redeemable for products and services in your area. The Recycle Bank takes paper, plastic, glass, phone books, cardboard, and cans. Music to Your Ears iPods and other mp3 players have turned CD collections into dust collectors. Instead of piling them up in your closet, check out FeedYourPlayer.com. This innovative company allows you to trade in your CDs and DVDs for items like flat-screen TVs and digital cameras at a major discount. Think how happy your children will be when you trade in your old CDs and DVDs for a new PlayStation®. Dial "S" for Savings Do you have a drawer full of old, out-of-date cell phones you don't use anymore? Well, GreenPhone.com wants to buy them from you! That's right, as long as your old phone still works, you could get anywhere from $1 to $70 for it. GreenPhone, in turn, sells the cell phones to people all around the world who can actually use them. Plus, you can also earn commissions for any referrals you provide. And, for every phone that GreenPhone buys, they plant trees through partnerships with American Forests and Sustainable Harvest. Electronic Deposit Similar to Greenphone, MyBoneYard.com takes your working flat panel TVs, laptops, and computers, erases all of your personal information, and then donates them to women's shelters, senior citizens, schools – or sells them to companies worldwide that can use them. What an e-volved concept! Who said recycling doesn't pay off? Take advantage of these great companies and help the environment at the same time. If you know of any other green companies or websites that I should add to this list, please give me a call! I'd love to hear how you're making recycling pay off for you and your family.

10/8/08

HOME SALES ARE UP!

Dear Friends,

I don't have to tell you that current news reports regarding the economy are both frightening and depressing. One can't help but worry when reading headlines like those in this morning's Arizona Republic: "Crisis grips campaign, nation," "Dow hits 5-year low despite Fed's efforts," and "Retirement-fund freefall: 20% lost over 15 months." However, on CNN this morning, financial expert Gerri Willis reported that there have been 15 "Bear" markets (prior to the one we're in now) since 1929 and, historically, we have come out of all of them. She noted that they usually last about 15 months and show stock declines of about 33.5%. The big question is, "How do we know when we've hit bottom?" No crystal ball here, but, despite all the bad news about the stock market, bank failures, job losses, and the housing market, the National Association of REALTORS® today reported some GOOD NEWS: "Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates."
Click on the link below to read the NAR press release.
http://www.realtor.org/press_room/news_releases/2008/pending_home_sales_up

According to an article ("The Housing Crisis is Over") in The Wall Street Journal on May 6, 2008, the housing market may actually have bottomed out in April 2008. The article noted that "a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor." Valley-wide, we have seen a constant rise in sales since June of this year. The attached chart shows monthly Valley-wide sales since 2003. There were 6,168 total closed sales in September, an 81% increase over September 2007 and a 115% increase over January of this year! This is the first month with over 6,000 sales since August 2006! Have we hit the bottom? Is the housing market turning around? Again, no crystal ball here, but the article in The Wall Street Journal said, "In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months."

While volatility continues and we're all currently in a holding pattern, financial experts are saying that, for those in a position to do so, this may be the time to invest rather than pull out. On the housing side, as I've said before, we're looking at a perfect storm of low interest rates, low prices, and high inventory. Have we seen the bottom? The NAR report on increasing PENDING sales (homes currently under Contract) and current housing trends here in the Valley are very encouraging! Think positively! There is power in positive thinking and positive action!

Warmest Regards,
Pook

9/15/08

PROPOSITION 100

Dear Friends,

Please take a few minutes to download and read the attached flyer regarding Proposition 100. It is an important issue that will affect the financial future of every homeowner in Arizona.

On November 4th there will be an item on the ballot entitled Proposition 100. This is a Protect Our Homes initiative. A YES vote would prevent Arizona's state or local governments from EVER targeting our homes or property with a real estate transfer tax. By voting YES, you are approving a citizens' initiative that will amend the Arizona Constitution and provide the best protection we can have against a double tax on our homes.

Currently, we do not have a transfer tax, however, there is nothing prohibiting the government from enacting one at any time. Thirty-six of the 50 states have some sort of transfer tax. Typically, governments look to add this tax when they are trying to increase revenue. There is serious concern about this happening here in Arizona due to the current state of the economy.

Transfer taxes ordinarily apply to any transfer of title, including such transfers as:
• Sale from one person to another
• Transfer of title from one family member to another
• Transfer of title to a trust

When you cast your YES vote on Prop 100, remember that voting YES will actually mean NO to:
• Double taxation on our homes and property
• Reducing the equity in our homes and property
• Hurting lower income families through increased purchasing costs
• Slowing down even further a real estate market that is already negatively impacting many Arizona families. (The good news is that home sales have been up since June!)
• Punishing homeowners by damaging the most important investment that many of us will ever make in our lifetime and the "nest egg" of our future and our children's future.

Please help spread the word about Prop 100.

Feel free to contact me if you have any questions.

Warmest Regards,
Pook

Prop 100.jpg 465K View Download

7/28/08

15 MONEY MOVES FOR HARD TIMES; CONSUMER RESOURCES; AIRLINE FEES; and REVERSE MORTGAGES

15 Money Moves for Hard Times
15 Money Moves for Hard Times - While economists debate whether the country is in a recession, consumers are being buffeted by skyrocketing prices, growing debt, layoffs, the subprime lending squeeze and a stock market roller coaster. While you may not be able to control the price of oil or the prime rate, there are some simple things you can do to shore up your finances, safeguard your future and ride out whatever the economy throws at you.

Some Great Consumer Resources
Today, with so many of us looking for ways to get the most value for our dollar, I thought I'd take this opportunity to share some great websites for consumers. I know there are many others out there, so if you have a favorite you'd like to share, please email it to me and I'll include it in my next Pook's E-News.

Air Travel:
These are four of my favorite resources for air travel:

• AirfareWatchdog.com - "We're the only site that lists low airfares on all airlines,
  including Southwest. And we include special fares that you can only buy on the airlines' own sites." Sign up for notification of the best deals from your favorite airport.
  
• kayak.com - " Kayak is a travel search engine. Which means we search hundreds of travel sites from all over the world, provide the information to you in an easy-to-use display and send you directly to the source to make your purchase." A great portal for finding great airfares.
  
• seatguru.com - The ultimate source for information on airplane seating and in-flight amenities. This is the place to go to before you choose a seat.
• SmarterTravel.com - Sign up for email notification of great airfare deals and articles on travel. Especially good info for Seniors.

Automobiles:
Edmunds.com - A great resource when you're looking to buy a car (prices, reviews, information, inventory).
Kelley Blue Book - Valuable information on New Car Prices and Used Car Values

Grocery Coupons:
http://shortcuts.com/home
http://www.printgrocerycoupons.net/
http://www.couponmom.com/

Misc. Resources:
ClarkHoward.com - "Save more, spend less and avoid rip-offs."

Airline Fees Information
The valuable information below is courtesy of airfarewatchdog.com

• Airline Baggage Fee Chart
• Frequent Flyer Fee Chart
• Shipping Baggage vs. Airline Fees Chart
• General Airline Fee Chart

These two articles are courtesy of SmarterTravel.com

• Airline fees survival guide, part one
• Airline fees survival guide, part two
• 
  

Reverse Mortgage - What is it and is it for you?
Reverse Mortgage -- Valuable information from the U.S. Department of Housing and Urban Development (HUD)

7/27/08

MY NEW E-PRO CERTIFICATION

Dear Friends,

I'm proud to announce that I now hold the designation of e-PRO. I am one of a select few real estate professionals to earn this prestigious certification offered through the National Association of REALTORS.® The valuable information I have gained through the e-PRO course will help me stay at the leading edge of technology in the real estate industry.

With more than 70% of consumers beginning their real estate research on the Internet, e-PRO certified agents have the expertise to meet the demands of today's Buyer and Seller. I am looking forward to utilizing my new technology skills to help my clients with all of their real estate needs.

This continues to be a great time to buy. With interest rates still hovering at around 6%, and with inventories high and prices lower than they have been in years, this is the perfect time to buy. If you are looking to sell your home, don't despair, as this can be a good time for you, too. While the market may indicate that your home's value has gone down, pricing it right for the market and making it "the best in show" can make it sell and allow you the opportunity to buy another great home at a great price. Whatever your needs are, I'm here to help.

Warmest Regards,
Pook