H A F A- Home Affordable Foreclosure Alternative Program

H A F A- Home Affordable Foreclosure Alternative Program

Which loans are eligible?

1. Not owned or guaranteed by Fannie Mae or Freddie Mac.

2. Borrower’s principal residence.

3. Loan is first lien mortgage originating on or before January 1, 2009.

4. The mortgage is delinquent or default is inevitable.

5. The unpaid balance is less than $729,750.00.

6. The total monthly mortgage payment must exceed 31% of the borrower’s gross income.

Fannie Mae & Freddie Mac loans are developing their own, similar guidelines.

This is a voluntary program for banks. However, many major banks like Bank of America, Chase, Wells Fargo and Citibank are expected to participate. Many smaller lenders are also expected to follow. Seventy eight mortgage servicers opted into the government’s Home Affordable Modification Program which cover approximately 85% of eligible mortgage debt. Banks and mortgage servicers want to clear up the many potential short sales.

How is this better?

1. Servicers will get $1,000. to cover costs, subordinate lien holders get up to $3,000. for forgiving the loan in its entirety.

2. The borrower will receive $1,500. for moving costs.

3. There will be standardized forms, procedures and timelines. There will also be pre approved terms before the property is listed for sale. This means that the banks will pre determine a sale price for payment in full of the debt.

4. These new guidelines will allow serious buyers to consider short sales with less effort. They will not have to worry whether the lender will accept their offer. Buyers will not have to worry about liability for future debt. This has been a problem in some states.

In short, this program gives owners that are under water pre-approved solicitation for a short sale. While the property is being marketed, proactive processing can be done for a quicker closing. Although it will take some time for lenders to modify these guideline procedures, it is a step in the right direction.

Source – Realtor.org

Millie Thomas, Broker

Landmark Realty of L.I., Inc.

6347 Route 25A

Wading River, NY 11792

631-929-3600

January 2010 Home Figures

The Multiple Listing Service of Long Island, Inc., (MLSLI) has recently released January 2010 home figures reporting a $365,000 closed median home price for Long Island. The latest housing figure represents an increase of 4.3 percent from last January when the MLS of LI reported a $350,000 closed median home price. In December 2009, a month prior, the closed median home price on Long Island was $354,000.


Three Long Island counties make up the Multiple Listing Service of Long Island, Inc.; Nassau, Suffolk, and Queens. According to the new market updates provided by the Multiple Listing Service of Long Island, Inc, Nassau County reported a closed median home price in January of $417,500 in Nassau County, representing an 8.4 percent increase over January 2009. Queens County reported a closed median home price of $360,000, representing an increase of 4.7 percent over January 2009’s figure of $343,750. Suffolk County reported a closed median home price of $317,000, falling just slightly below the $320,750 closed median home price reported in January 2009.


The available residential, condo, and coop inventory levels continue to diminish as sales activity in all three counties remains active. According to the new MLSLI Market Report, Nassau County reported 7,297 available properties in January 2010, which represents a 21.4% decrease since July 2009. Suffolk County reported 13,264 available properties compared to 15,993 six month prior and Queens reported 6,674 properties compared to 7,377 in July of 2009.
According to Joseph E. Mottola, CEO of MLSLI, January figures show signs of a balanced housing market as home prices rebound and inventory levels trend downward. Mottola further notes that, “The extension of the tax credit is still providing a strong incentive for buyers to enter the market and coupled with favorable financing and product selection, support a continuation of an active housing market well into Spring.”

Millie Thomas
Broker/Owner
Landmark Realty of L.I., Inc.
6347 Route 25A (Next to McDonalds)
Wading River, NY 11792
631-929-3600

EXTENDED AND EXPANDED HOMEBUYER TAX CREDIT LAW WILL IMPROVE THE HOUSING MARKET

In order to stimulate the housing market and the overall US economy, President Obama signed the new law that extends the first Homebuyer Tax Credit of up to $8000. to first home buyers until April 30, 2010. This law expands the credit to current homeowners that are purchasing a new or existing home between Nov 7, 2009 and April 30, 2010. The maximum credit for current owners is $6500. Existing homebuyers who have lived in their current home for at least five years are eligible. Qualified buyers have until July 1, 2010 to close on the purchase. Those who serve in the military and who are on extended duty outside the US can claim the credit until July 1, 2011, provided they sign the sales contract before May 1, 2011. There are some restrictions and income limits.

For example, the purchase must be a principal residence, not a vacation or investment home and the buyer must occupy the home for at lease three years. Single family homes, condos, townhouses and co-ops are included. The credit amount is determined by the price of the home and the buyer’s income. The credit may only be awarded on homes purchased for $800,000 or less. Single buyers whose income is up to $125,000 and married couples with incomes up to $225,000 are eligible and can still receive the maximum tax 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 buyers filing jointly but are still eligible up to that point. Buyers will not have to repay the tax credit as long as they occupy the home for three years or more. However, if the house is sold during the three year period, the full credit amount will be due upon the sale. If a buyer doesn’t owe the IRS the amount of their tax credit, they will receive a check from the government for the difference of what they owe and the tax credit that they are due. There are Anti-Fraud Provisions because many taxpayers who were not eligible for the credit had wrongly claimed it. Those listed as dependents on someone else’s tax return cannot claim the credit and taxpayers must also be at least 18 years of age by the date of the purchase. Homebuyers will now be required to attach a copy of the settlement agreement to the tax return as proof of the purchase.

The Multiple Listing Service of L.I. which represents Queens, Nassau and Suffolk Counties reported 2,708 closed sales for December 2009, representing a double digit increase of 38 percent over the number of closed sales a year ago. The number of monthly closed transactions has not exceeded the 2,700 mark since August 2007. The number of closed sales in the fourth quarter of this year compared to 2008 is almost double. The combination of lower home prices, the first-time homebuyer tax credit and mortgage rates near 5% (for a conventional 30-year fixed mortgage) has made buying a home more affordable, and smart buyers are rushing to take advantage of the opportunity. The number of sales has increased but the prices have not . However, if prices continue to fall by and additional 10%, but the interest rates increase by 1%, that would mean the same monthly payment today versus waiting. .

The following is a chart from the National Association of Realtors regarding the Homebuyer Tax Credit Changes. If you need more information, please contact your tax professional or the IRS.

Millie Thomas, Broker/Owner
Landmark Realty of L.I., Inc.
6347 Rt. 25A
Wading River, N.Y. 11792
631-929-3600

Will the Wading River cell phone tower affect your property value?

There is a proposal to erect a 100’ cell phone tower on the property of St. John’s Church in Wading River. The tower would be built by Verizon and would significantly improve the “Dead Zone” in our area, especially as we go North closer to the Sound.

This proposal has raised much controversy with the local residence. Many of the residence would like to preserve the character of our historic community. They feel like it will stick out like a sore thumb. Other concerns are health issues and the possibility of decreased property values.

Although there is no concrete proof that health problems exist from cell towers, it is perceived that there could be an issue of health safety. Also there is a pre-school behind St. John’s. Besides the health issue, the tower fall zone could overlap the back entrance to the building.

I have been a Realtor for over 17 years and I can tell you that aesthetics are extremely important to buyers. Many buyers will not buy a home on a busy road, near power lines or where cell, water, or broadcasting towers are in view. Some will make lower offers because of their personal perception. Their perception therefore becomes a reality to them.

How will a cell phone tower affect your property value? There have been many studies. Some surveys show that it will not decrease the value because we all want cell service. Other studies say that it could decrease property values anywhere from 3% to 24%. A study in Florida was conducted and it showed that the closer the property was to a cell tower, the greater the decrease in price. This study eliminated areas around Interstate 4 so that noise from traffic was not a factor. Other considerations were lot size, interior square footage and age of homes that sold. There was also an extensive study conducted by Bond & Wang. That was based on 4283 property sales in four suburbs of Christchurch, a town in New Zealand. This study was also controversial.