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Fannie, Freddie limits back to $729,750

By Inman News, Monday, February 23, 2009.

Conforming loan limits have been restored to as much as $729,750 in 250 counties around the U.S. as the regulator of Fannie Mae and Freddie Mac implements a policy change in last week's $787 billion economic stimulus bill.

H.R. 1, the American Recovery and Reinvestment Act, restores the higher limits in place for Fannie and Freddie during much of 2008, allowing the companies to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas.  more...

Local MLS, ads pay off for agents Premium Content

By Bernice Ross, Monday, February 23, 2009.

Where should you concentrate your marketing efforts in 2009? What strategies work with today's consumers and which ones should be discarded? The NAR Profile of Home Buyers and Sellers for 2008 provides some important clues that you cannot afford to ignore.

1. Increase your online advertising budget. If you're throwing your money into newspaper advertising, magazines or buying guides, you may want to shift some of those print advertising dollars to online advertising. According to the survey, only 1 percent of consumers found their agent through the newspaper, Yellow Pages, direct mail, or specialty advertising such as calendars and magnets.  more...

Home inspection: Don't buy without it

By Dian Hymer, Monday, February 23, 2009.

Easton v. Strassburger, a landmark California lawsuit in 1984, changed the way residential housing defects were dealt with when a home is sold. Before the Easton case, the credo was buyer beware. Today, few buyers would consider buying a home without first having it inspected by a competent home inspector.  more...

Tips for paying off mortgage early

By Benny Kass, Monday, February 23, 2009.

DEAR BENNY: I was reading in one of your columns about paying off your mortgage faster by making an extra payment each year. You said to make sure your coupon clearly indicates you are making an extra payment. I did this at the end of 2008, but didn't know whether it should go under an extra payment or payment on the principal. I paid it on the principal because otherwise it wouldn't show up until January as a payment.

I called the mortgage company and could not get a straight answer from them. I was told I could do it either way, which was not helpful. Did I do the right thing by paying the extra payment on the principal? I was setting up our payments to come out of our checking bimonthly so the extra payment would be included each year. We also have money going into our escrow account to pay our taxes and homeowners insurance. I am confused. --Lynette  more...

More markets see price declines

By Inman News, Monday, February 23, 2009.

Home price declines have accelerated in the last few months as more markets see price declines, First American CoreLogic reports.

On a national basis, home prices in December were down 11.1 percent from a year ago and 19.3 percent from their July 2006 peak, bringing them back to May, 2004 levels, the company said.

States seeing the most severe year-over-year price declines were California (-26.9 percent), Nevada (-26.5 percent), Arizona (-21.1 percent), Florida (-19.5 percent) and Rhode Island (-19 percent).  more...

Is homeownership an obstacle to change?  Premium Content

By Matt Carter, Monday, February 23, 2009.

Incentives for home ownership are hampering the nation's shift from an industrial economy to one based on the exchange of information and ideas, even as workers abandon old industrial centers and migrate to "mega-regions."  more...

REOs dominate many markets Premium Content

By Inman News, Monday, February 23, 2009.

The foreclosure market "is the housing market" in 2009, analysts at Deutsche Bank say in a new report that's skeptical about the effectiveness of the recently passed $787 billion stimulus bill to revive housing markets.  more...

Many borrowers paying premium to refinance

By Jack Guttentag, Monday, February 23, 2009.

It is unusual to have a refinance boom in the middle of a foreclosure crisis. In the 1930s, which was the last time we had a foreclosure crisis comparable in magnitude to this one, lenders were so spooked by the foreclosures that there was almost no refinancing. That changed only after the creation of the Home Owners Loan Corporation (HOLC) in 1933, which refinanced many borrowers at the government's risk.

The refinance boom today is also fueled by government. With few exceptions, refinanced loans are either being sold to Fannie Mae or Freddie Mac, or insured by FHA. The requirements of those agencies largely dictate who can and cannot profit from a refinance.  more...