New Bulk Selling of REOs – How Will it Impact You?

For those who aren’t familiar with the term REO, it’s short for Real Estate Owned and refers to properties that have gone through the foreclosure process, did not sell, so the bank has taken over as the owner on record for that property. The original homeowner lost it to foreclosure, the bank now owns it.

The Obama administration recently announced new plans to sell Fannie Mae, Freddie Mac and FHA REOs in bulk to mega-investors at deep discounts.

Which begs the question, who are mega-investors? Currently, they consist of: hedge funds, large institutional investment groups, and real estate companies with the capital, national or regional reach, and management capability to purchase and convert these REOs into rentals.

What dollar amount is considered “bulk”?

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Message to Congress on Small Home Mortgage Foreclosures

“Those who cannot remember the past are condemned to repeat it.”  George Santayana 

Read this Message from Franklin D. Roosevelt to Congress. American Presidency Project, April 13, 1933. We have been here before..

To the Congress:

“As further and urgently necessary step in the program to promote economic recovery, I ask the Congress for legislation to protect small home owners from foreclosure and to relieve them of a portion of the burden of excessive interest and principal payments incurred during the period of higher values and higher earning power.

Implicit in the legislation which I am suggesting to you is a declaration of national policy. This policy is that the broad interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability, and that to protect home owners from inequitable enforced liquidation in a time of general distress is a proper concern of the Government.

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New Rules Concerning Short Sales

Have you been, or will you be, involved with a short sale?

Beginning January 2012, new rules:

Starting January 2012, everyone involved in a short sale will be liable for “negligent or intentional misrepresentations in the transaction” and will have to sign affidavits stating that they are handling the transaction to federal standards.

The addition of the affidavits to the short sale process is designed to help everyone involved in the short sale “identify potential mortgage fraud and have a clearer understanding of the intent of all parties involved in the real estate transaction,” the GSE (government-sponsored enterprise) announced in a public statement.

The move is specifically designed to prevent “flopping” short sales, which occurs when short sale properties are purchased from the bank at a discount, then sold immediately for a higher price. The government agency considers this practice unscrupulous because it involves at least one party having knowledge of another party willing to pay more for the property than the amount for which the bank is settling.

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Turn Your Underused Attic into the Loft You’ve Always Dreamed Of

Guest Post

Thanks to Christa Blair of Buildables.net for this post.

There are a ton of boxes and memories stored in your attic and, while you cherish them, they just take up too much space. The truth is that you store most memories on the inside and getting rid of some of the clutter can turn into a wonderful and therapeutic experience. It will also give you the space to turn that attic, no matter the size, into a dream loft or hideaway spot in your home.

Cleaning up is just the start; there are many ways to turn that attic into the perfect loft and here are some trusty ways to do it.

• Use light colored paint – It is not the norm for attics to have a lot of space. If your attic is small with little head room, try a light colored paint. This brightens the room to give the illusion that it has more space.

• Try not to section the room – Sectioning your attic gives it too much definition and takes away from the loft feeling. Remember a loft has few partitions and a lot of space. To mimic this in an attic, you must not use furniture or other objects to define specific areas.

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Christmas Trees – a North Carolina Tradition

Christmas Tree Farm

It’s that Holiday time of year! Did you know:

North Carolina ranks second in the nation in Christmas tree harvesting. Every year, 2500 growers send about 6 million trees to market. The state cash receipts for these trees totals approximately $100 million.

You can pick and cut your own tree at about 400 North Carolina Christmas Tree farms. In fact, about 300,000 people use this method to purchase their trees each year.

Christmas tree production generates about $100 million in revenue for our state each year.

North Carolina Fraser firs are the most popular choice for the White House Christmas tree. From 1971 to 2008, a North Carolina Fraser fir decorated the blue room eleven times!

The average price of a Christmas tree in 2010 was $36.

I love North Carlina.

From our state to yours, Happy Holidays!

Why Some Homes Sell Faster

Home Solar Power Discounts – One Block Off the Grid

What a great post. Thanks to One Block Off the Grid.

Apps – Jetfuel for Your Business

Apps

Do you have a smartphone or tablet? I use the iPhone and iPad. In fact, don’t know how I got along before them…

And, I use apps – everyday. Following are 15 of my favorite; some for business, some not. I hope you find them helpful.

  1. Gas Buddy – Find the cheapest gas! Gives a list of surrounding gas stations and their prices.
  2. TripIt -Travel organizer – All your travel emails and confirmations in one spot. You can share your travel info right from TripIt.
  3. Booking.com – Hotel reservations for over 170,000 hotels. Finds your location, shows nearby hotels and their rates.
  4. Nearby and AroundMe – Quickly find Restaurants, Cafes, Bars, Banks and other places near your current location.

    5. Read more…

Are You Hiring an Employee or an Independent Contractor?

employee

And do you know the difference? The IRS does, and they’re checking your records.

Employee – Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages.

Independent contractor – You do not generally have to withhold or pay any taxes on payments.

These statements make hiring independent contractors sound like the way to go for small business, don’t they? So, what’s the catch if you do?

If you classify an employee as an independent contractor and the IRS deems they are actually an employee, you will be held liable for employment taxes for that worker as well as fees and penalties.

To determine how to pay a worker, you must first know the business relationship between you and the person performing the services.

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Trulia Crime Map

Trulia Crime Map

Trulia has this amazing crime map created by Movity. Check it out!

Make Your House Stand Out in the Crowd


Muzammil Bashir lives in London.  His percentage of increase in home value may vary in your area, but these are good approximations of renovation value from someone in the business.  Thanks to Muzammil for this post.

A home in an area with several other houses that look just like it will not have an advantage that will motivate home buyers to choose it over any other house in the area that is for sale. Homeowners can increase the odds that they will sell their homes faster by spending some money on renovations before they put their houses on the market.

Add a Second Bathroom

If a home has only one bathroom, one of the best ways to increase its value is to add a second bathroom. The homeowners, if they decide to sell, will be able to sell the home for a much higher price than they would before the addition, and they can expect a 71 percent return on their investment. Without a second bathroom, the homeowners would find that it will much harder to sell the house because a house with at least two bathrooms is more desirable.

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