FRONT PAGE REAL ESTATE BLOG

this is just one example of a BANK OWNED or FORECLOSURE purchase that did not turn out to be a great bargain.  Lesson:  Get the advice of an experienced real estate professional and GET HOME INSPECTIONS BEFORE YOU BUY.

By Al Everson
BEACON STAFF WRITER

For Marrie Kate Sallade, her house in Deltona is scarier than Halloween.

Sallade's home is a house of horrors, a compounded set of woes she bought last year.

"I purchased this home in the first place for $60,000. It would cost me $60,000 to put the house in order," she said.

Sallade has qualified to receive a $25,000 grant from the State Housing Initiative Partnership (SHIP), but the grant falls short of the full costs of making the house livable.

"I can get the SHIP grant," she said. "But the SHIP grant is not going to help much, because I don't have the other $25,000 to fix the house."

A single mother, Sallade purchased the home on Weybridge Street in June 2008, after it had gone into foreclosure. Two or three months after she moved in, one problem after another bedeviled her, Sallade said, even though the home had been inspected.

"September 2008 is when things started going wrong," she recalled. "I had inspections done. I had an electrician and a plumber go through. ... The problems were concealed enough so you would have to take out the wall and see the problems."

The electrical defects are such she and her 2-year-old son, Elijah, have had to live with no air-conditioning or heat for more than a year.

"It hurts me so much when we sit down to dinner, and he's pouring sweat," Sallade said.

What needs to be done?

"They would replumb the entire home. They would rewire the entire home. They would put in AC," Sallade said. "We cannot even use space heaters because of electrical problems."

In addition, the house needs a new roof, and there are mold problems that threaten Elijah's health.

The mold grew after water pipes burst twice and flooded the house.

"Four inches of water" covered the floors of almost every room, Sallade said.

As if that was not enough, the house's electrical system began to fail.

"The way the add-on is spliced into the wiring and the plumbing, it could overload the wiring," she said. "Nothing works in the kitchen. My refrigerator has been moved out to my living room."

The original home, built in the 1960s, needs new windows.

NEED PROFESSIONAL ASSISTANCE?  CALL MICHAEL HALPIN 386-473-6600

COME AND GET IT!

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Latest news:
Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)
President's Podcast: Tax Credit Extended (Nov. 5) 

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

CALL MICHAEL HALPIN TO FIND YOUR NEXT PROPERTY 386-473-6600.

Source: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

Jennifer Clark's team are foreclosure specialists, among other things.  In DeLand Florida, she and her team will handle over 100 bank-owned sales in 2009.  It is important to understand that the quality of available bank-owned properties is better than it has notoriously been in the decades passed.  We will cover that later.  For now, understand that forclosed homes present the best dollar value or "Bang for the Buck" in the market.  See more below.  Happy hunting!

Home affordability has reached record levels nationwide as new home prices and repossessed property prices continue to go down. According to a study by IHS Global Insight on U.S. homes prices, the average house has lost value by 12.2 percent. 

The IHS report said that the most undervalued metropolitan area is Vero Beach, Florida, where the median price has dropped to $125,400, a drop of 29.7 percent compared to the first months of 2005. Next is Houma, Louisiana, where the median price of $113,500 represented a drop of 41.4 percent. Third most undervalued is foreclosure-battered Las Vegas, where the median price has fallen by over 46 percent since 2005 and is now under-priced by nearly 41 percent.  

See the entire article here:  http://www.eforeclosuremagazine.com/foreclosure-crisis/repossession-property-prices-fall-affordability-rises

Email me if you want to be the first-person list as we acquire new foreclosures in central Florida.  michael@michaelhalpin.com

OVERALL MARKET STATISTICS:

We have good news and bad news!

The good news is that the average time a home sits on the market is down to 118 days. We were up to 150s last year. The other good news is that inventory levels are coming down. As more people are out buying, we will see good things happening. There were 156 sales in April. We haven’t had a month that busy since August of 2007. The bad news for sellers is that prices are still dropping, with the average home sales price at $116,802. That is down from $192K last year this time and down from $124K just since January. We are still having low contract prices and lots of seller concessions for the buyer causing the sales prices to average only about 92% of listed price at time of contract. There were only five sales over $300,000 in April, but that is encouraging news since there has only been 14 total this year.

Total number of residential listings currently FOR SALE in west Volusia is 2402.

The second half of 2009 should remain very active and sales are expected to increase, but you should be prepared to make pricing reductions to remain competitive in this downward adjusting marketplace. Two of my sales in the last few months were negatively affected by the appraisal and the sellers had to accept a lower than agreed to sales price. Volusia County is experiencing good signs for stabilization, but we are not out of the dark yet. The $8000 buyer tax credit seems to be helping out a bit, but many anxious buyers simply cannot qualify to purchase right now. Sellers who can provide (owner) financing are finding some success.

NATIONAL STATISTICS

National statistics are also encouraging. I recommend checking out Realtor.org and getting the scoop directly from the Chief Economist, Lawrence Yun. http://www.realtor.org/research/economists_outlook/commentaries

Home Maintenance Tips -

Spring has arrived in many parts of the U.S. The ideas below will help you prepare your home for a hassle-free summer.

• Clean showerheads and faucet aerators.
• Clean and seal tile grout.
• Clean the clothes dryer exhaust duct and space under the dryer. This prevents lint from accumulating and reduces the risk of fire.
• Inspect washing machine hoses and replace when they show signs of wear or leakage.
• Inspect deck or patio for deterioration and safety hazards. Repair loose boards, protruding nails or other safety issues.
• Keep a multi-purpose fire extinguisher handy and ready for use.
• Wash the exterior of your house using ordinary garden hose pressure and a mild detergent.
• Caulk exterior joints around all windows and doors.
• Change air conditioner filters.
• Have a certified chimney sweep inspect and clean your chimneys.

Buyers are out on the streets and activity levels are up.  I have two more homes under contract.  If you are ready to look for that next or new home, contact me today.  That super-good deal will be gone tomorrow.

Normally, I try to keep the blog full of exciting real estate news and ideas, but since this has come to my attention, I feel compelled to spread the word.  The following was written by Michael Rowan.

It is alleged that as many as 36,000 homes in Florida and 300,000 in the country may be affected by defective Chinese drywall.

Homeowners have registered complaints with the state that their mechanical systems and appliances are constantly breaking down, their homes have an unusual rotten egg odor, their copper piping and jewelry are turning black, they are experiencing breathing and respiratory problems, nose bleeds, headaches and more.

Many of these homeowners have now joined in on a class action lawsuit and have pressed their Senators and congressmen to do something about it.

Most of the complaints come from homeowners who own homes built between 2003 and 2007, although it is now coming to light that homes dating back as far as 2001 may also have this product!

The cause and effect of this problem has not been finalized, but it is believed that humidity causes the sulfur in the drywall to give off gas, which in turn is the prime reason for noxious odors and corrosive action on the metal products and materials within homes. If you believe you have this product you should not steam clean carpets, walls, floors, etc. until you have had your home inspected and analyzed.

From an initial investigation by the Department of Health in the State of Florida, it appears that there is not any data suggesting that there is an imminent or chronic health hazard at this time, but this is cautioned by the fact that there is not yet enough data and the underlying issue has not been determined at this time. The concern however with some experts is that is the air is caustic enough to deteriorate products and materials within these homes, it must also have some affect on the people living there.

At this time the Consumer Product and Safety Commission is also conducting investigations to check on this matter so we expect more results in time.

It is estimated that almost 550 million pounds of Chinese drywall was brought into the United States during the peak of the housing boom when material shortages were common, particularly after the 2004 hurricanes.

Some builders have already taken decisive action and have worked with some of their homeowners to fix the problem, but this is becoming much bigger than any builder could probably handle in this already difficult market.

Initial investigations by a professional inspector, air quality testing and material testing are all part of the identification process needed to eliminate the fear of this problem. This investigation is expensive let alone the remedial repairs needed if found.

If this drywall is identified, the cost of remediation can be enormous because the entire interior of the home may have to be rebuilt from the shell in addition to replacing any furniture, drapery and other belongings affected by the gases. Add to this the cost of relocating the affected homeowners during the course of the work and you have a huge bill on your hands!

It is for this reason that Congressman Wexler and Senator Nelson have been proactive with this problem, introducing legislation and petitioning Governor Crist and the Federal government for financial assistance to affected homeowners in addition to more investigations by the consumer Products Safety Commission.

There is no question that neither the real estate industry nor the building industry needs any more negative news, but the reality is that homeowners need to be extra cautious not only when buying a home but also with the ones they live in.

For today’s homeowners selling existing homes built since 2003, it is recommended that some disclosure be made as part of the real estate transaction and a professional inspector is hired prior to listing in order to eliminate or determine if the drywall is present in your client's home.  See more here:  http://blogs.consumerreports.org/safety/2009/03/chinese-drywall-corrosion-health-problems-sulfur-odor.html

I was recently communicating with a young couple preparing to purchase their first home and we were getting ready to go look at homes. I sent them a brief email and, by the time I finished, I decided to included a portion of it on my real estate blog for all buyers to consider. Enjoy:

Value in a home purchased can be looked at in a few ways. First, the more square footage for the dollar is better. We refer to it as price per square foot. You may want to keep it under control, however, because the utility bill will get you AND many of our strongest buyers (baby boomers/retirees) aren't looking for big houses because they require too much up-keep. For good salability later, stick to under 2500 square feet. Second is land or lot size. The more for the money is better. The old expression, “Land! They’re not making any more of it!" is absolutely true, but someone will have to maintain it. Too large is a farm and too small is zero-lot line living. Third is everything else. (That's easy isn't it?) I call it the likability factor. Does it feel good as you approach? If it dazzles you as you walk up and go in, it will be easy to sell later also. Extras like pools, fences, cool landscaping, etc., all help finish off the package, but they are hard to use as value indicators.

That pretty much sums up getting the best value when you are shopping for a home. For the personalized kind of service only Michael Halpin can deliver, call today at 386-473-6600. Happy Hunting!

St. Patrick's Day

Celebrated on March 17, this is the anniversary of St. Patrick's death in the fifth century. The Irish have observed this day as a religious holiday for thousands of years. On St. Patrick's Day, which falls during the Christian season of Lent, Irish families would traditionally attend church in the morning and celebrate in the afternoon. Lenten prohibitions against the consumption of meat were waived and people would dance, drink, and feast on the traditional meal of Irish bacon and cabbage.

The first St. Patrick's Day parade took place not in Ireland, but in the United States. Irish soldiers serving in the English military marched through New York City on March 17, 1762. Along with their music, the parade helped the soldiers to reconnect with their Irish roots, as well as with fellow Irishmen serving in the English army. Over the next 35 years, Irish patriotism among American immigrants flourished, prompting the rise of so-called "Irish Aid" societies, like the Friendly Sons of Saint Patrick and the Hibernian Society. Each group would hold annual parades featuring bagpipes (which actually first became popular in the Scottish and British armies) and drums.

Celebrate the day with some Irish Food Favorites
http://www.foodnetwork.com/food/ck_gc_ireland

Here's a fun website with activities for children
http://www.kidsdomain.com/holiday/patrick/

Let's look at St. Patrick's Day this year as a good luck charm for buying houses.  $8000 tax credit, excellent rates, excellent prices and great opportunities.  Find your pot of gold at the end of the rainbow on VolusiaPropertyShowcase.com

HOW CAN YOU MAKE AN EXTRA $8000 THIS YEAR? It sounds like a fly-by-night company’s advertisement for a work from home scam, but this is real. You have to buy a home and be a first-time homebuyer (which means you have not owned property in the previous three years). See the basics at the following link: http://www.usnews.com/blogs/the-home-front/2009/02/17/first-time-home-buyer-tax-credit-6-things-to-know.html All this time I have been telling people there has never been a better time to buy…now it is even better. Volusia County has an abundance of real property for sale including waterfront, oceanfront, farmland, new construction, gated communities, riverfront, historic downtown, retirement communities, and more. Help the economy(and a Realtor)…BUY A HOUSE!

I have also just added a new page to my site for investors, buyers and sellers. The goal of this page is to speed up the process by which sellers can get the word out to investors & buyers. People do not have to list their property or sign any agreements. I hope to provide help to those who need it, who might not be in a position to list their home on the open market, by creatively addressing their needs. See more here: http://www.volusiapropertyshowcase.com/investmentcenter

You have probably heard all the doom and gloom about the housing market, but here is some balance for you: The numbers of actual foreclosures has dropped significantly, about 25% nationwide (http://www.realestateproarticles.com/Art/5470/265/Foreclosures-Decline-By-25-Percent-in-January.html ) Foreclosures.com’s Alex McGee attributes this drop to the efforts of government. I believe this drop is a result of people actually getting help instead of sitting back and letting the banks foreclose. We are seeing large numbers of owners using short sales to get out of bad situations. This technique saves the owner’s credit and financial future while also minimizing the banks’ losses. Real estate types make a little money for helping it all work out, so it is a win-win-win. Loan modifications, and other tools are also causing this foreclosure number to decline. See more here: http://www.volusiapropertyshowcase.com/foreclosurehelp

The scary truth is that this is far from over. The sub-prime loan issue is only part of the problem. Most people took the ARM (ADJUSTABLE RATE MORTGAGE) because it was offered at a better interest rate than the 30 year fixed rate. The mortgage industry gave us all incentives to end up, nationally, where we are today. Now, and through the next two plus years, homeowners who took the bait will need to refinance or seek alternative solutions to their rate approaching adjustment. When you consider the instability of our economy, and loss of job security, then mix it all up with homeowners’ monthly payments jumping up $300 to $800, remembering that values have declined and borrowing requirements have tightened, so refinancing opportunities are vanishing, what do we all do now? http://www.financialstability.gov/ Well, the government is going to save us, of course. Like Hope for Homeowners, expected to help as many as 400,000 homeowners, but in its first two weeks it helped only 42. By the time Washington figures out how to help, it might be too late.

Tell your neighbors there are many options besides foreclosure(before it is too late). Most people keep those things to themselves until one day, they vanish. We all have something to offer in this economic recovery besides our tax dollars. Get the word out.

The following snippet is from Bankrate.com which is included on my news page. Click on the left button “News.” I am hearing that the Fed’s goal is to get 30 year fixed interest rates down to 4.5% to stimulate buyers who are on the fence. What this kind of rate really means is that a buyer can own a $150,000 home for about $760 per month. Not including taxes and insurance, that is still a big WOW! Compare that to what we’ve seen for the last year or two, which was still great, at 6.5% your payment would be $950. GREAT TIME TO BUY.

Volume affected rates (Bankrate.com)
The reasons for this week's drop in rates are complicated. First of all, Bankrate surveys the same 100 lenders each week -- 10 lenders in 10 large markets -- and some of those lenders had been quoting high rates because they already had as much business as they could handle.

During this downturn, lenders "whacked (operational) staff en masse and simply can't handle intense volume today," writes Jim Sahnger, mortgage planner with Palm Beach Financial Network, in an e-mail from his office in Stuart, Fla. "So, if you are already at capacity, (you) increase rates and then you can concentrate on getting your loans closed without being bombarded by new apps."

Certain lenders in Bankrate's survey -- Bank of America, most prominently, and also Chase and Citi -- had kept rates high for the past few weeks. But they dramatically cut their rates on the 30-year fixed this week, and that's partly what's behind this week's decline in the Bankrate survey.

And then there's the Federal Reserve, which last week opened the checkbook for the first time on its promised shopping spree for mortgage-backed securities. The Fed plans to buy up to a half-trillion dollars' worth of mortgage-backed securities in the first half of the year. Think of the Fed as an extremely deep-pocketed bank, competing with other banks to provide money for mortgages. When banks compete, you win: Rates go lower.

Keep up with current news about the real estate industry on my news page here: http://www.volusiapropertyshowcase.com/News

Now, no matter where you live in the United States, owning your own home may be more affordable than you think! If you are currently renting or wanting to move up, HomeSteps would like to help you on your way to homeownership. We will pay up to 3.5%* of your purchase price in closing costs for all offers presented on HomeSteps homes between October 23, 2008 – January 31, 2009.

To qualify for this great money-saving offer, just ask your real estate agent to show you the available HomeSteps homes in your area and to include this closing cost offer at the time of your initial offer on a HomeSteps home. Then, upon qualified closing, you will receive your Ask an Agent buyer offer.

No coupon required!

Don’t have a real estate agent yet? Click here to search for an agent near you!

Saving up to 3.5%* at closing adds up! Just think, you could use your closing cost savings to purchase new carpet, new furniture – you name it!

This offer only lasts until January 31, 2009, so make sure and Ask an Agent today about HomeSteps homes.

The news is abuzz about the Treasury lowering home loan rates to 4.5% to stem the foreclosure crisis but details have been lacking. The Treasury Department stated it is looking for additional ways to help the struggling housing industry and believes lower rates are needed.

This idea is similar to the November 26th announcement from the Federal Reserve where they indicated the intent to purchase up to $500 billion in mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. In addition they would buy another $100 billion in direct debt issued by those firms. The November news caused bond prices to spike higher and forced mortgage rates lower. Just like any commodity, whenever tremendous buying interest exists, prices rise. Mortgage rates fell almost 1/2% in rate following the announcement. However, the following week market forces continued and rates spiked a bit higher from the recent lows.

It is important to remember that there are no details to the Treasury plan as of yet. The Federal Government does not directly dictate home loan rates. Rates are determined by price movements of Mortgage Backed Securities (MBS), which compete for investor funds in the open market. The Treasury can buy mortgage bonds on the open market but remember that they are not the only entity buying and selling these instruments.

The Treasury is in a very tough position in trying to manipulate home loan rates. Creating a new Federal mortgage program could be very risky. How would rates be set, who would qualify, and can the funds be used for purchases and refinances are just some of the questions being asked. The other critical concern is implementing such a program without destroying the current mortgage securities market. Doing so could have the unintended consequence of causing additional economic turmoil.

Rates are not going to 4.5% with the wave of a wand by Hank Paulson or Ben Bernanke. As a matter of fact, the massive borrowing to fund the TARP program has a negative effect on rates. At this time, the announcement still leaves a lot of uncertainty. What we do know is that rates are at historic lows and house prices have moderated setting up a great scenario for people who need to refinance or are looking to buy a home. Waiting for rates to fall to 4.5% may leave people sorely disappointed.

There are still excellent government programs available for home buyers.  The following is one of them, sent to me by one of my favorite mortgage pros in this area:

USDA – RURAL HOUSING

Guaranteed Rural Housing (102% Financing on an appraised value)

• 102% Financing based on appraised value, if appraised value exceeds sales price, borrower can finance closing costs!

· No monthly mortgage insurance, 1-time guarantee fee of 2% that can finance above the appraised value.

· No asset requirements.

· No first time homebuyer restrictions.

· 600 minimum credit score – Terrace guideline

· Declining markets do not affect LTV.

· 6% seller concessions and 100% gifting is allowed - Your borrower can purchase a home with no money of their own into the transaction

· Geographic and income restrictions apply

· Property eligibility- http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

Call

Maureen Harland

386-738-7765

My Mortgage Company

I do the very best job I can for my customers at all times.  One of my habits is to park across the street from a new listing, hop up onto the back of my Dodge pickup and snap some birds eye (kind of) photos.  This usually gives a nice look to a home.

Recently, I went through my usual routine, right after some major storms, and got my truck stuck in some seriously soft sand & muck.  Needless to say I was very frustrated, embarrassed and reminded why trucks are available in 4 wheel drive and I maybe should have thought about that when I bought it.  Well, just about the time I had given up trying to get myself unstuck, biting the bullet and calling a tow truck, a nice guy with a bigger truck stopped to help me out.  In just a couple minutes, we had his rope hooked up to my truck and I was free of the muck and my embarrassment.

In this case, he went the extra mile, so I thought I would mention it here.  As he has his own Masonry Business, it fits right in with real estate information.  If you are in the Volusia area and need a man you can count on, give him a call.  Thanks again John!

J. LOWE'S MASONRY INC.  Call 386-804-4714 and ask for John.

Al Everson and Barb Shepherd had a very good article in the printed edition of this week's DeLand-Deltona Beacon, our local paper.  Use this link to read Al's online article that was very similar and informative.  http://www.beacononlinenews.com/news/daily/1001

In short, government spending was out of control as property values increased from 2002 to 2006.  Now that property values are returning to normal levels and your tax bills should be going down significantly, the government will be voting on ways to fight that.  It should disturb you when your government can be so reckless with your tax dollars. 

When property values were reaching unrealistic levels, governments should have been much more cautious with appropriations, planning for the eventual burst.  This isn't rocket science.  Instead, they found ways to waste the revenue difference between 2002 levels and those falsely inflated 2005-06 levels.  It is a shame. 

Now, don't go marching down to city hall with your torches and pitchforks, but go, if you are interested, at 6 pm on September 4th, to the Thomas C Kelly building at 123 W Indiana Ave.  It is the first public hearing on the tentative budget where members of the county council will convince us all that keeping our taxes high is good for us.  It should be quite a spectacle.  I'll bring the popcorn!

God Bless America!  See more information about property taxes at http://www.volusia.org/property

I am your local real estate professional.  When you need me, I'll be there.

I would like to take a quick break from real estate to talk about other news worthy stuff like THE OLYMPICS! I wish I had enough spare time to sit on my rump for two weeks straight and watch the world’s best athletes compete for glory, but I was working most of the time and fighting off Tropical Storm FAY the last few days. You may think some of those athletes are just given these gifts so they win, but I would like to share a personal story about my wrestling memories.

I won the Central European High School Wrestling Championships while living in Germany in 1989, ah, the glory days! When I stepped up onto the top platform, reserved exclusively for the very best, and received my reward and held it up high, I felt like I deserved it. After all, I was the athlete up at 5 am to jog before school every day, then drag myself through classes half awake (still managing to squeak out a better than average GPA) to be rewarded with only an apple for lunch. I took the bus home from school, but jogged for miles to the late afternoon wrestling practices that usually lasted 3-4 hours, then usually jogged home after. My mom hated it. She thought I was punishing myself and possibly causing irreversible damage to my potential growth and health, but I knew I was building a winner. Practices were grueling, intense cardio workouts of every kind, mat routines, drills, brief bouts, full-on matches and the stairs. Never forget the stairs! It is impossible to count the number of stairs I climbed my junior year. Millions? Sometimes we would jog 6-8 miles to a rough flight of stairs that wobbled their way up a Heidelberg mountainside, then back down and back to the gym to finish the workouts. The gym turned into a human sauna with kids looking like they just crawled out of a swimming pool in their clothes. Walking out of practice every night looked like we were on fire as the steam from our heads lifted away into the cool night. Mom thought I would catch pneumonia, but I never did. My diet consisted of one egg in the morning with one piece of bread and 8 ounces of juice or milk. Lunch was a piece of fruit. Dinner was one 6 ounce baked chicken breast (no G Foreman back then) with small side of veggies and the infamous 8 ounces of juice or milk. NO EXCEPTIONS! If I ever bent the diet rules, I paid for it in the gym. No one else deserved to be up on that gold medal platform but me.

Of course, every athlete goes through this kind of sadistic training to be the best and they all probably feel like this, so who wins? The one that ran the most? The won who ate the least? The won whose dad paid for expensive training equipment? You ask me, the one who wins is the one that wanted it the most! HEART wins competitions like this! Sure, natural ability plays a MAJOR role in who can compete, but at these levels of competition, everyone there has the natural ability. The race is won to the person who can take the most pain and keep going! The one who gets up every time they fall and goes again. Let me tell you, it feels glorious to step up onto the top spot. All the hard work is justified. The triumphant reward to sacrifice and struggle. Even though it was not the Olympics, it will live with me and in me forever. Thanks Mom and Dad. Thanks Coach.

Congratulations Michael Phelps, World Record Breaker and Holder, the 8 for 8 man. He set a goal and attained it. Absolutely amazing! Congratulations Shawn Johnson, Nastia Liukin and women’s’ gymnastics. Congratulations Dawn Harper and women’s’ track. I could go on and on…see all the winners here: http://sports.yahoo.com/olympics/beijing/usa and scroll down to the bottom.

These world-class athletes remind us what is best about America.  I am always proud to be an American.  Been that way my whole life.  These moments should be on the news every second if you ask me. 

Go USA! Now let’s get the housing problems straightened out!

The Housing and Economic Recovery Act

This week, President Bush signed the "Housing and Economic Recovery Act of 2008" into law. This $300 Billion rescue plan is aimed at helping struggling homeowners avoid foreclosure, as well as boost confidence in the housing market. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are a few of the major provisions in the legislation that impact homeowners and homebuyers:

1. Tax credits. First-time homebuyers who purchase their primary residence on or after April 9, 2008 and before July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest free loan, paid back over 15 years at $500 per year when taxes are filed.

Special note: Some types of seller-paid down payment assistance programs are being eliminated as of October 1st as well - so purchasing a home before then may gain you a double benefit of tax credits AND seller-paid down payment assistance while it is still available.

2. Larger loans at lower rates. There have recently been provisions in place that have allowed loans larger than $417,000 to qualify for better financing rates than normally would be available for "jumbo" loan amounts of that size, thanks to Fannie Mae and Freddie Mac. Although these provisions were set to expire, they are being extended...however, the top end of the loan size that will be allowed under these programs will be dropping down from $729,750 to $625,500 as of January 1, 2009.

3. FHA Hope for Homeowners. This provision is designed to help homeowners who are "upside down" on their mortgages--that is, they owe more on their house than they can sell it for in today's market. Essentially, this plan allows homeowners who meet the requirements and are upside down to refinance their mortgage to a new 30-year Fixed FHA mortgage. There are a number of qualifying details that must be met and requirements to be agreed to -- including agreeing to split the equity in your home with the government in the future. Still, if you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring in more detail.

The following was borrowed from one of my mortgage associate’s newsletter. Good info:

I hope everyone's 4th of July was safe and enjoyable.  It is always a pleasure to take a short break from the routine, share some time with friends and family, and remember where our country has come from and where it is headed.  In all the fun and festivities, we remember those that have volunteered and sacrificed to make our nation great, and we remember those who are currently serving abroad and within so that we may sleep at night knowing that there are others more selfless than us protecting our freedom and liberties.  As a former US Marine who has been through Iraq during the combat portion of our endeavor over there, I can tell you that there are two major things that make the job worthwhile for any serviceperson.  The first one is helping struggling people gain a better chance at a good life for their children and families.  The second one is knowing that we have the unconditional love and unwaivering suppport of our families, friends, and country back home.  God Bless America.  Happy 4th of July!

It was also a very productive weekend for real estate.  We just sold another seven properties and have fresh buyer leads we are working with.  Remember to call Michael Halpin when you need real honest answers about real estate.