Merry Christmas

Merry Christmas to everyone!

Build Relationships

Source: Unknown

Build relationships. Starting or growing a business involves interacting with many people. An entrepreneur may be the originator of the idea, but almost immediately, he or she must interact with others to secure resources, engage with potential customers and suppliers, or hire and manage employees. The ability to build strong relationships is crucial for survival and growth.

Successful entrepreneurs are adept at building relationships. They have strong social awareness and can attract and maintain a constituency. The enthusiasm and positivity of strong relationship builders make it easier for others to interact with them. These entrepreneurs also have high standards of personal conduct that enable others to trust them and form strong relationships with them. This demand is relevant in the early and established stages.

Pray

Source: TheHuffingtonPost.com, Inc.|
December 18, 2012

Twenty-seven small U.S. flags adorn a large flag on a makeshift memorial on the side of Highway 84 near the Newtown, Conn., town line as residents mourn victims killed by gunman Adam Lanza, Monday, Dec. 17, 2012. On Friday, authorities say Lanza killed his mother at their home and then opened fire inside the Sandy Hook Elementary School in Newtown, killing 26 people, including 20 children, before taking his own life. (AP Photo/Julio Cortez)

 

 

My input: Pray today and everyday - He listens to us

A FORD DEALERS REPORT

A Ford Dealer's Report - From Tom Selkis' (Latham Ford) Facebook -True story yesterday at the dealership.

"I'll try to make this as short and to the point as I can.

One of my salesmen here had a woman in his office yesterday wanting to lease a brand new Focus.

As he was reviewing her credit application with her he noticed she was on social security disability.

He said to her you don't look like you're disabled and unable to work.

She said well I'm really not. I could work if I wanted to, but I make more now than I did when I was working and got hurt (non-disabling injury).

She said the gov't sends her $1500.00 a month in 1 check.

And she gets $700.00 a month on an EBT card (food stamps), and

$800.00 a month for rent.

Oh yeah, and 250 minutes free on her phone.

That is just south of $3500.00 a month.

When she was working, she was taking home about $330.00 per week.

Do the math and then ask yourself why the hell should she go back to work.

If you multiply that by millions of people, you start to realize the scope of the problem we face as a country.

Once the socialists have 51% of the population in that same scenario, we are finished.

The question is when do we cross that threshold if we haven't already, and there are not enough people working to pay enough taxes to support the non-working people? Riots?? Be prepared to protect your homes.

She didn't lease the Focus here because the dealer down the road beat our deal by $10.00/month.

Glad to know she is so frugal with her hard earned money."

The Economy this Week

The second half of the week heats up with several important reports.
Economic data doesn't begin until Thursday with Weekly Initial Jobless Claims.
Claims have been moving lower the past few weeks after the big spike higher in November due to Superstorm Sandy.

Retail Sales will also be delivered on Thursday.

A double dose of inflation news ends the week, with the wholesale-measuring Producer Price Index on Thursday, followed by the Consumer Price Index on Friday.

Home Buyers are Waiting For?????

In most cities, home prices are on the rise!
We are starting to read about how housing is now the engine for economic recovery. However, it will not be long before the Fed increases their rate and mortgage interest rates will soon follow.
As interest rates increase and prices increase, buyers will be able to afford less.
As an example;

How much could you afford to borrow if you wanted to keep your monthly mortgage payment at $1,000? A $1,000 per month rental will be difficult to find in 2013!

at 4.0% interest rate (rates are currently lower)                              $209,000
In Charlotte, you can easily find a 4 BR/2.5 Bath/2-car garage house for under $200,000.

at 6.5% interest rate (probably an historic average)                       $158,000
In Charlotte, you can still find a 3BR/2.5 Bath/2-car garage house for under $150,000

at 18.0% interest rate (Carter's standard..... and in the future?)        $66,000
In Charlotte, you can still find a 2BR/1 Bath house built in 1950 for under $75,000.

Do you really think financial reforms and regulations will make it easier for someone to buy a home?
The home buying process will only become MORE complex and difficult for buyers to buy a home in the new year. Then..............................

Why do you think so many home buyers are waiting?

Please post and share your answer to the above question.

Home Prices form 2000 - 2012

In most cities, prices are on the rise! It will not be long before the Fed increases their rate and mortgage interest rates will soon follow. As interest rates increase and prices increase, buyers will be able to afford less. Why would financial reforms and regulations make it easier for someone to buy? It will only become more complex and difficult for buyers to buy a home in the new year. 
Why do you think so many home buyers are waiting?
Post and share your answers to the above questions.

The Fiscal Cliff

Guest Blog Post:

As we head into 2013, tax cuts for individuals and various tax breaks for businesses are due to expire, taxes pertaining to President Obama’s healthcare law will begin, spending cuts enacted by Congress as part of the debt ceiling deal of 2011 will go into effect, and long-term jobless benefits will expire.
The Congressional Budget Office (CBO) estimates that if all of these items occur, it could take an estimated $600 billion out of the U.S. economy in 2013, pushing the country into a recession. This is the “fiscal cliff” we’re heading toward.

And while Congress and the President need to find a way to resolve these issues, the uncertainty here at home combined with continued uncertainty surrounding the debt crisis in Europe has benefitted our bond market, as investors see our bonds as a safe haven for their money. Since home loan rates are tied to mortgage bonds, they have also benefitted.

Also helping bonds and home loan rates last week was the news that inflation, as measured by the Core Personal Consumption Expenditure, remains limited. Remember inflation has a negative effect on bonds (and therefore home loan rates) because it reduces the value of fixed investments like bonds. In other news to note, new home sales for October came in lower than expected and September’s numbers were also revised lower.

There was some good news in the housing sector: Home prices in the September Case Shiller Home Price Index 20-city composite increased 3.0% from September 2011.
The bottom line is that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows.

Table Source: Mortgage Success Source

Contact me. Christopher Day | Mortgage Loan Officer BOA

Will the Mortgage Deduction Go Over the Cliff?

Dec 4, 2012

Senator Kay Hagan

Dirksen Senate Office Building, Room 521
Constitution Avenue and 1st Street, NE
Washington, DC 20510-3309

Dear Senator Hagan,

I am writing to you, as a constituent and as a member of the National Association of REALTORS®, concerning an issue of critical importance to the  United States housing market and the economy.

As my elected official, it is imperative you remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest.The mortgage interest deduction is vital to the stability of the American housing market and economy.

I am sending this message to ask you to stand with 70 million American homeowners. I will be watching to see who stands with us.

Sincerely,

David Johnson

 

Kay Hagan is non-existent in the Senate. She is led over the cliff everyday. It is time to defeat Kay Hagan at the ballot box. She provides NC with lip service only. During the health care debate, she stuck her head in the sand. Yes, I am not a fan of Kay Hagan. Yes, I will campaign against her re-election.

Why didn’t HOUSING have its own debate night during the election?

For years, I have been saying that As Housing goes……..so goes the Economy.

Why were housing issues neglected especially with homeowners suffering with

the housing collapse? Underwater  homeowners, tight credit availability, and foreclosures

Issues that will be reviewed by our elected officials:

Refinancing  

(1) Streamlining refinancing of Fannie Mae and Freddie Mac borrowers.

(2) Helping homeowners lower their monthly mortgage payments despite being underwater.

Regulatory 

(1) The Qualified Mortgage (QM) rule allows a borrower to sue if a court deems the borrower did not have the ability to repay the loan

(2) The Qualified Residential Mortgage (QRM) rule requires lenders to have a capital stake in some loans

(3) Basel III will mandate how much capital banks have to keep on hand for all their mortgage-related business.

Obama’s second term could include:

·         Eliminating the mortgage interest deduction

·         Providing Principal reduction of loans backed by the government

·         Affordable housing policies taking the forefront of housing issues

 

 

Mortgage Forgiveness Debt Relief Act of 2007

NEW YORK (CNNMoney) -- The clock is ticking on a tax break that saves struggling homeowners from paying thousands of dollars to the IRS.

If the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended by Congress by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is forgiven in a foreclosure, short sale or principal reduction.

So if you owe $150,000 on your home and it sells for $100,000 in a foreclosure auction, the IRS could tax you on the remaining $50,000. For someone in the 25% tax bracket, that would mean paying $12,500 in taxes on the foreclosure. Similar taxes would apply for forgiven amounts in short sales and principal reductions.

"People trying to do short sales are freaked out about it," said Elizabeth Weintraub, a real estate agent in Sacramento, Calif. "They're telling me they'll do whatever it takes to close by the end of the year."

Should the tax break expire, a large number of mortgage borrowers could be affected. More than 50,000 homeowners go through foreclosure each month. Meanwhile, the number of short sales has tripled over the past three years to a rate of about half a million a year. And, under the terms of the $25 billion foreclosure abuse settlement, roughly one million borrowers may have their mortgage debt lowered through principal reductions over the next couple of years.

"If there ever was a no-brainer in housing policy, this would be it," said Jaret Seiberg, a policy analyst for Guggenheim Securities.

Yet, Seiberg is skeptical the exemption will get extended. Now that the election is over, he thinks Congress will be heading into a "lame duck" session, with very little legislation moving forward through the end of the year.

In addition, the cost of the exemption could make it a point of contention, he said. The office of Sen. Max Baucus, who heads the finance committee, estimated the cost of a one-year extension at $1.3 billion.

 

 

The end of the year is fast approaching. Now what?

 

 

Where Homes are Affordable

Source for statistics:    CNNMoney Article

1. Spring, TX

Median home price: $98,214
Median family income: $72,742

2. North Port, FL

Median home price: $86,000
Median family income: $58,180

3. Missouri City, TX

Median home price: $145,690
Median family income: $89,242

4. Cedar Rapids, IA

Median home price: $113,000
Median family income: $67,778

5. Bellevue, NE

Median home price: $124,000
Median family income: $73,998

My 2-cents worth of commentary ------ In Europe, it is common for homebuyers to qualify for a mortgage amount 3x their salary. The loan is a result of a required 20% down.

Do you want to live in New York City, Washington DC, Boston, or San Francisco?

Multiple your salary by three (3). This will equal the highest price of home you can afford to buy if you lived in Europe.

As an example, the 2012 median household income in Boston = $52,000

By using the European model, a family could afford a home priced at $156,000.

The family would also have to have $31,200 cash for a down payment.

However, in Boston, the median asking price as of October 2012 = $330,000!!

The definition of a qualified mortgage is coming in 2013. Be diligent home buyers and home owners!!! It will be more difficult to BUY and to SELL a home after 2013.

 

This map shows the median income for each state. If the housing policies use the European model, our housing industry will be upside down and changed inside out!

3 rd Qt Real Estate Changes

The median price in the top ten cities has changed dramatically in California. Is this a result of the housing market improving on its own? OR .......... are housing prices increasing due to the lack of inventory?
It is clear to me that the lack of inventory of homes listed influences sellers to increase the list price. The high unemployment rates in these cities  tells me that the foreclosure and short sale inventory has been marginalized and not a factor, at this point in time. Then why are home owners not selling? Fear! If they don't have to sell ---- they are not selling. Period!
I have said it before and will say it again............................prices are going to skyrocket very quickly and interest rates will soon follow regardless of the monetary policy brokered within the DC beltway.

Energy Use in the Home

In the past decade, global oil prices have risen 265%. This increase continues to strain us in our daily lives and stretches our businesses to a breaking point of maintaining costs and/or raising prices.

Our homes use a variety of heating fuels. Will the percentage of the following fuels change as we explore new ways to fuel our homes?  

Electric                       36%

Natural Gas               49%

Oil                                7%

Propane                       6%

Other                            2%   (solar is 0.01%)

 

The Bakken Formation in North Dakota and Montana could provide more than 10 billion barrels of recoverable oil.

U.S. oil demand fell 2.3% in October 2012. We use approximately 18.4 million barrels a day as per the American Petroleum Institute. It just seems to me that the energy issue of the 1970’s and 1980’s wasn’t serious enough for our elected officials.

Fracking will provide access to natural gas supply sufficient to fuel the US economy for more than 100 years. It seems clear to me!

...........just saying.................

Take Action: Keep the Housing Recovery on Track

Source: Realtors®

Despite some positive signs of recovery, our nation’s real estate market is still fragile.
Over a quarter of all transactions still involve distressed properties.
That is why you must take action now and tell Congress to extend
Mortgage Forgiveness Tax Relief.

Without action before the end of the year, millions of families who hold distressed properties could face a hefty tax bill for trying to modify their mortgage or to seek a short sale through their lender. Even those facing foreclosure will find themselves forced to pay a “foreclosure tax” if Congress doesn’t act.

This is because the amount of debt forgiven by the lender would be considered “phantom income” to the borrower even though they never receive any payment from the lender. No taxpayer should be forced to pay tax on money they’ve already lost with cash they never received.

Identity Theft is Alive- Are you Protecting Yourself?

Picture this. You sit down one morning to check your online banking account and you see a number of charges that you don’t recognize—some are even out of state and you have not been traveling! You also check your credit card statement and find that you have no available balance because of purchases made that you don’t remember making.

The sinking suspicion you feel is correct- you are a victim of identity theft!

Out of every 100,000 people, roughly 67 report an identity theft claim. Identity theft scams are on the rise and, despite the perception, it is not just the elderly who fall victim to them. The criminals that want your information and intend to assume your identity have proven that they will go to any length to get it- some by stealing mail, some by using internet pop-ups, and some get it from the most reliable source- YOU. Many identity theft situations can be traced back to the victim giving out their own information over the phone!

The effects of identity theft can be horrifying. Your previously well-protected credit score can be ruined, leading to further financial troubles in the future.

It is extremely important that we counteract this criminal activity by protecting ourselves. Here are some suggestions on how to protect yourself from identity theft:

· Protect your Social Security Number. Do not carry your social security card in your wallet and do not print your driver’s license or social security number on your checks.

· Protect your passwords. Do not share them with others or write them down. Be sure to have a different password for each account and do not make the passwords something obvious like date of birth or your mother’s maiden name.

· Protect your mail. Opt out of pre-approved credit card applications by calling 1-800-5-OPT-OUT. Do not leave incoming or outgoing mail in an unsecured mailbox that is easily accessible to criminals.

· Review your credit reports annually. Execute a Security Freeze to stop criminals from getting new credit in your name.

· Know the scams. Never give out your personal information over the phone unless you are certain of who is on the other end. Visit www.noscamnc.gov for more information.

· Invest in Identity Theft Insurance. Sometimes even taking the proper steps to protecting yourself does not always prevent someone from stealing your information. Identity Theft insurance can be purchased from your credit card vendors or through your insurance agent and can help to pay for restoring your personal identity information and reinstate correct credit report information.

Most insurance companies now offer an identity theft endorsement that can be purchased for $25 a year or less.

Every company’s product is different but here is what identity fraud endorsements typically provide you:

Coverage for Identity Fraud Coverage Includes:

· Attorney’s fees incurred in defense of lawsuits brought against an insured by merchants or their collection agencies and removal of any criminal or civil judgments wrongly entered against you that challenge the accuracy or completeness of data in a consumer credit report.

· Lost income as a result of time taken off work to meet with, or talk to, law enforcement agencies, credit agencies, legal counsel, or to complete fraud affidavits (up to $500 per week for a maximum period of four weeks).

· Loan application fees when insured must re-apply for loans when the issuing company rejects solely because of incorrect credit information.

· Long distance phone charges to merchants, law enforcement agencies, financial institutions or similar credit grantors or credit agencies to report or discuss an actual identity fraud.

· Notary and certified mailing costs for completing and delivering fraud affidavits.

If you haven’t taken the opportunity to add this valuable coverage to your insurance policy- do it today! Isn’t this worth the $25 bucks a year? Call your insurance agent today!

New Refinancing Opportunities for Homeowners with HARP 2.0 - Revisited

The Home Affordable Refinance Program (HARP 2.0) now offers new refinancing opportunities for homeowners who are “underwater” on their mortgage and have not previously been able to qualify to refinance because of declining home values.

 You may be eligible to refinance with HARP 2.0 if you meet the following criteria:

• Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

 See Loan Lookup below to determine if your loan is eligible for refinance.

• Your mortgage cannot have been previously refinanced under HARP.

• Your current loan-to-value ratio must be greater than 80%.

• You must be current on your mortgage at the time of the refinance, with a good payment history for the past 12 months

To determine if Fannie Mae or Freddie Mac own the loan use the links below

Fannie Mae Loan Lookup (FNMA)

http://www.fanniemae.com/loanlookup/

Fannie Mae Loan FAQs

http://www.fanniemae.com/resources/file/aboutus/pdf/loanlookupfaq.pdf

Freddie Mac Loan Lookup

http://www.freddiemac.com/mymortgage

Industry estimates of underwater mortgages are about 20 percent of all homes with a mortgage. Of these, approximately 50% of these mortgages owned or guaranteed by Fannie Mae or Freddie Mac. So why not check to determine your eligibility?

FYI

Fannie Mae was loaned $116 billion in bailout funds
Fannie Mae has repaid $28.5 billion (24.6%)

Freddie Mac was loaned $71 billion in bailout funds

Freddie Mac has repaid $21.9 billion (30.8%)

The Positive Pledge

When is the last time you said..........................

Vote for revenge or Vote for love of Country

I care who wins but I don’t care who you vote for ---- just VOTE!

Target: Being a Godly Role Model

Proverbs 20:7

The righteous man walks in his integrity; his children are blessed after him.

Founding Father Quote:

“Impress upon children the truth that the exercise of the elective franchise is a social duty of as solemn a nature as man can be called to perform; that a man may not innocently trifle with his vote; that every elector is a trustee as well for others as himself and that every measure he supports has an important bearing on the interests of others as well as on his own.”

-Daniel Webster


Prayer:

Heavenly Father, our children are in desperate need of righteous role models. May you send men and women, boys and girls who have been called according to Your purpose to infiltrate their lives.

May they grow in the knowledge of You all the days of their lives. As they hide Your words in their hearts, may America’s children begin to walk in the shadow of the Almighty.

May the Godly examples being played out before their eyes affect them in such a way that they leave behind those things of the world and begin to diligently seek

You with their whole being. We ask for Your supernatural protection over them, as they are 100% of our future.

May Your love become contagious throughout our nation, and may we give You all glory, honor and praise in all that we do. Amen.

Pastor John Hagee

Charlotte Market Status

Without a question, the Charlotte market has changed significantly the last 6 months. If you have been following my blog over the 3-years, you will know that the Charlotte housing market lags behind the national trend.

The current inventory of single family homes on the Charlotte market is about 10,700 homes.

The result of the number of homes on the market and the number of homes closed over the past

6-months represents a seller’s market.

Buyers should not wait any longer.

Get off the fence.

Do you really think it will get any better than NOW to buy?????????



Charlotte Home prices continue climb in August
10/30/12 article
http://bit.ly/RtH2gb

Charlotte Housing Market Status

The housing market in Charlotte has changed overnight! The dynamics between the buyer & seller are changing as well. Interest rates hovering around 3.5% or lower are not energizing the market. WHY?

Over 67% of the households in the US can afford a home priced below $250,000.

Using this threshold in assessing the Charlotte market, I have analyzed the market using the MLS system for data.

There are remarkable changes in the market from the 1st quarter 2009 to October 2012!

Families have been mobile since the federal highway system was constructed.


Families move every 7 years.
Family formations are at an all time low.
This Presidential election has paralyzed the real estate market.

Now is a great time to sell and buy --- a more balanced market before becoming a sellers market.


Number of Homes on the Market

Home Price Range                    1st Qt 2009                  1st Qt 2012                   3rd Qt 2012

$175,000 - $250,000                 6,458                            4,743                              2,208

$100,000 - $175,000                 8,008                            6,727                              2,824

$0 - $100,000                           5,392                            6,058                               2,441


Average Price of Homes

Home Price Range                    1st Qt 2009                1st Qt 2012                    3rd Qt 2012

$175,000 - $250,000                $209,000                   $209,000                        $212,008

$100,000 - $175,000                $138,000                   $139,618                        $142,796

$0 - $100,000                            $60,000                     $55,000                          $75,240

The Cost of Water

Water will be (is) more valuable to our families than gas and it will cost more! The cost trends are remarkable and silently taking more and more of the household monthly budget. The trend will only continue since water is also a supply issue. More importantly is the capability of local jurisdictions to maintain their water supply and distribution systems. What are the priorities of your local municipality --- parks, new government buildings or expanding water supplies and maintaining distribution systems?

% change in the cost of water since 2000 – a few selected cities (source USA TODAY)

Los Angeles 67.1%
Denver 78%
Des Moines 78.1%
Oklahoma City 77.2%
Atlanta 233.1%
Charlotte 112.2%
Tampa 117%
NY City 151.1%
Boston 119.3%

Comparing Utility Costs for an average residential home have been changed to current dollars and adjusted for inflation from 2000 to 2012. The source of this data is from the Bureau of Statistics and research by USA TODAY.

Natural Gas 12%              Electricity 7%              Heating Oil 100%             WATER 34%

   

GDP REPORT

4th quarter 2009                                    5.6%

1st quarter 2010                                    2.7%
2nd quarter 2010                                   1.7%

3rd quarter 2010                                                           2.6%

4th quarter 2010                                    3.1%

1st quarter 2011                                    0.4%
2nd quarter 2011                                   1.3%
3rd quarter 2011                                   1.8%
4rd quarter 2011                                   3.0%

1st Quarter 2012                                   1.9%
2nd Quarter 2012                                  1.3%

3rd quarter 2012                Advance Estimate                  2.0%

Are You Better Off Today than you Were in 2010?

As housing goes …. So goes the economy!

WAKE UP AMERICA!

Dream - Vision - Goal