Winners and losers in 2009 real estate

Many types of buyers, sellers and fence sitters seem well-positioned for a victory lap while others are lagging. Bankrate talked with real estate agents, academics, consumer advocates, industry watchers, buyers and sellers to discover who are the odds-on favorites, the nail-biters and the long shots.

Here, in no particular order, are some potential winners for this year:

14 real estate winners in 2009

1. Buyers	8. Move-up buyers
2. First-time buyers	9. Con artists
3. Fence sitters	10. Buyers with fresh data
4. Buy-and-holders	11. Financially troubled homeowners
5. Real estate brokers	12. Cash buyers
6. Buyers with financing	13. Contented homeowners
7. Mortgage shoppers	14. Sellers in solid markets

Buyers. “It’s obviously a great year for buyers,” says Robert Kiyosaki, co-author of “Rich Dad, Poor Dad.” “Prices are still dropping and, if you have cash, they’re even lower.”

First-time buyers. “They’re not saddled with a lot of debt and can take advantage of a lot of the state and federal programs,” says William Poorvu, author of “Creating and Growing Real Estate Wealth” and professor emeritus at Harvard Business School. The $8,000 tax credit for first-timers who buy this year is especially popular.

Fence sitters. This time waiting may have paid off. Potential buyers now have a climate that combines low interest rates, low prices and, if they’ve never owned a home before, a sizable tax credit next April. “Anybody looking to buy a house that doesn’t need to sell a house” is a potential winner, says Glen Lazovick, senior vice president for Mid-Atlantic Federal Credit Union. “Prices have come down; they can negotiate.”

Buy-and-holders. “Real estate provides shelter,” says Dick Gaylord, immediate past president of the National Association of Realtors, or NAR. “It provides a place to live. It’s not a short-term investment.” If you’re looking for a good deal on a good home that you plan to live in for a long time, it’s a great time to buy.

Real estate brokers. “Sales are bound to pick up a little bit,” says Poorvu. “They’ve had a terrible year or two.”

Buyers with financing. “Do the prequalification and, often, the financing up front,” says Ron Phipps, broker of Phipps Realty in Warwick, R.I. “Poor credit may not get it.”

Mortgage shoppers. Buyers and potential buyers who research, shop and know their mortgage options can really come out ahead. “Local banks and credit unions are a source of good service and affordable money,” says Phipps. For those who may not have 10 percent, 15 percent or 20 percent to put into a down payment, FHA is a popular option.

Continue this article at bankrate.com

Mortgages key part of Obama reform

By Holden Lewis • Bankrate.com

If the Obama administration has its way, your next mortgage is likely to be “plain vanilla.”

Mortgage lenders will be required to offer “‘plain vanilla’ products that are simpler and have straightforward pricing,” according to a proposal circulated by the White House. A new regulatory agency would “require all providers and intermediaries to offer these products prominently, alongside whatever other lawful products they choose to offer.”

To extend the administration’s metaphor, next year’s mortgage marketplace might resemble an ice cream shop in which the salesperson’s first words to you are, “Would you like a single dip of low-fat, plain-vanilla ice cream?” If you want a double dip, or desire a flavor that’s more fattening, you have to sign a form opting in to less-healthy ice cream, then read a warning label about the perils of rocky road.

In short, the administration proposes a reform of banking regulations that would nudge consumers into taking fewer risks when they borrow. The new regulations would require financial disclosure documents to be easier to understand. Rules would push mortgage companies into competing on rate and price rather than competing by developing newfangled loan types.

The Obama administration wants to reform a lot more than mortgages. It’s asking Congress to make a multitude of changes affecting the entire financial system to prevent another meltdown. The proposal addresses everything from credit cards to hedge funds. It blames much of the financial crisis on the deterioration in lending standards for mortgages, so mortgage regulatory reform takes a prominent place in the 85-page proposal.

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Rates halt at an ‘up’ streak

http://www.bankrate.com/blogs/mortgages/mortgage-matters.aspx

By Holden Lewis • Bankrate.com

Thursday, June 11
Written 2:45 p.m. EDT

LIKE DOUGH: Mortgage rates keep rising and rising … sort of.

Rates are at their highest level since Thanksgiving week. The benchmark 30-year fixed averaged 5.95 percent in Bankrate’s weekly survey, conducted yesterday. Few people have reason to refinance with rates this high, so refinance applications are way down.

After rising steadily for two weeks, mortgage rates are falling back today by about one-eighth of a percentage point.

“Any idea where mortgage rates are going to go in the next 30 days?” an e-mailer asks. It’s the question of the week. Yeah, sure, I have an idea. And the people who work in the mortgage industry (instead of merely writing about it) have a different opinion.

In the weekly Rate Trend Index, we ask mortgage professionals and economists what they think will happen with mortgage rates over the next 35 to 45 days. Some take that question literally and others basically predict what they think will happen next week. In this week’s RTI, 57 percent of the voters guessed that rates will rise, and 29 percent said they’ll fall. The rest said rates will remain relatively unchanged. I’m in the minority who believes rates will go down.

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Get the most out of your homebuying tax credit

http://www.msnbc.msn.com/id/31193153/

When it comes to the $8,000 tax credit for first-time homebuyers, it seems there’s a new program every week to help tap that money today.

The credit can be claimed on 2008 or 2009 tax returns. Homebuyers who get a loan backed by the Federal Housing Administration can use the money to cover closing costs and other fees, and at least 10 states offer ways to use the tax credit faster.

“There are some real neat tax planning strategies you can apply now,” said Bob Meighan, vice president of TurboTax.

Continue the story here…

Now Is the Time to Buy!!

House prices are at or near the bottom, interest rates are low, SHIP funds are available, first time home buyers qualify for $8,000 from the Federal Government!!

What are you waiting for!

Jim Cramer Calls the Bottom of the Market

http://www.huffingtonpost.com/2009/06/03/jim-cramer-buy-a-house-no_n_210768.html

Jim Cramer recently appeared on TheStreet.com TV and was certain of one thing: now is the time to buy a house. Cramer, whose stock picking record has certainly drawn its share of criticism, couldn’t have been more sure of his call here, saying “I am frantically trying to buy multiple properties right now.” Cramer went so far as to call a bottom to the housing market. His words: “This is patently obvious.” Watch the full video here:

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