$8,000 Tax Credit a Down Payment Option for First-time Buyers

Springfield, Ill. — First-time homebuyers can now take advantage of a Federal Housing Administration program to allow qualified homebuyers to apply the $8,000 tax credit when purchasing a home. New changes to the federal tax credit will allow buyers to use that money at the front end, as part of their down payment at the time of closing rather than waiting for their tax refund.


Details of the modifications are outlined in a mortgagee letter on the HUD Web site at:

Fraud Alerts

The Treasury Department has alerted NAR to a scheme in which individuals try to buy real estate with fake promissory notes and bonds.

If you have any information regarding this type of fraudulent activity, we request thatyou contact the Department of Treasury, Office of Inspector General (OIG), Office of Investigations Hotline at 1-800-359-3898 or email Hotline@oig.treas.gov . Realtors approached by a person giving these or similar circumstances should consider the potential for fraud. Should you suspect fraudulent activity, it is recommended that you contact the OIG Hotline and your local law enforcement agency immediately.

Additional information regarding this and other similar fraud schemes can be found at the following Department of Treasury website:
http://www.treasurydirect.gov/instit/statreg/fraud/fraud_bogussightdraft.htm.

Treasury and HUD announce $419 million in Recovery Act funds to create jobs, provide affordable housing

WASHINGTON - As part of the Obama Administration's effort to create jobs and ease pressures on the housing market, the U.S. Department of the Treasury today announced more than $330 million in American Recovery and Reinvestment Act (Recovery Act) funding to spur the development of affordable housing units in Kansas, Michigan, Ohio, Wisconsin, and Puerto Rico. The Department of Housing and Urban Development (HUD) also announced $83 million for housing development in Ohio. The announcements come just three months after the Recovery Act was signed into law on February 17.

HUD Secretary Donovan statement on the Helping Families Save Their Homes Act of 2009

WASHINGTON - Today, President Obama signed into law the Helping Families Save Their Homes Act of 2009. The law expands the reach of the Administration's Making Home Affordable Programs, improves the Federal Housing Administration's Hope for Homeowners program and streamlines how HUD supports thousands of homeless support programs across America.

KEEP SAFETY FIRST AS THE SUMMER SEASON BEGINS

NTSB ACTING CHAIRMAN SAYS KEEP SAFETY FIRST AS THE
SUMMER SEASON BEGINS

************************************************************

As we approach the beginning of another summer travel season,
National Transportation Safety Board Chairman Mark V. Rosenker
today reminded all Americans that a few simple safety precautions
can keep us safe while we spend time with family and friends.
Rosenker emphasized the importance of safety on our waterways
by encouraging the use of personal flotation devices (PFDs) for
recreational boaters. Every year more than 700 boaters die on U.S.
waterways, and about 70 percent of those are by drowning. Most of
those that drowned were in small boats, those less than 21 feet
long. According to the U.S. Coast Guard, the use of PFDs (life
jackets) would have prevented at least 80 percent of those drowning
deaths.

"It has been proven that life jackets will save many more lives if our
family members take that extra step to wear them when boating,"
said Rosenker.

Rosenker again urged Virginia and Wisconsin, the only two states
that do not require children to wear PFDs while boating, to enact
such legislation this year. Wisconsin is currently considering such
a law.

Highway transportation accounts for more than 90 percent of all
transportation fatalities in the United States. The NTSB has long
advocated a series of safety improvements for highway travel,
including mandatory seat belt laws, age-21 drinking laws and child
restraints.

Like PFDs for those on boats, being properly restrained in an
automobile is the best way to protect every person in a vehicle.
Unrestrained vehicle occupants are ejected 29 percent of the time.
When totally ejected, 74 percent are killed. When vehicle
occupants use seat belts, only 1 percent of the belted population is
ejected. When buckling up children, remember that children up to
8 years old need to be in a child safety seat or booster seat
appropriate for their height and weight.

"All of these safety measures take just a moment to remember and
act upon," said Rosenker. "All of us should do our part to make
this holiday weekend and all those to come a safe and enjoyable
one."

For safety alerts on boating and highway transportation please visit
the NTSB Web site at http://www.ntsb.gov/alerts/alerts.htm.

Mixed housing signals perplex market

Anyone searching for the dichotomy of economic indicators these days did not have far to search Tuesday: News broke that homes fell by the sharpest rate in decades while an equally sharp spark in consumer confidence sent the stock market roaring.

Housing Hitting Bottom Means Fewest Starts Since 1945

The slump in the U.S. housing market that caused the median value of homes to decline 24 percent since 2006 may bottom next month without any prospect of a rebound for another year, according to estimates from chief economists at Fannie Mae and Freddie Mac, the Mortgage Bankers Association and national realtors and homebuilder groups. Existing home sales probably won’t reach pre-boom levels until the third quarter of 2010 and housing starts won’t surpass 1 million until 2011, a barrier last broken six decades ago, the economists said.

Chicago home prices show record yearly drop in March

Chicago home prices posted a record drop in March compared with the same month in 2008, according to Standard & Poor’s. Chicago-area prices fell 18.6 % in March compared with March 2008, a record year-to-year decrease, according to S&P. But local prices fell just 3.1 % in March compared with February after falling 3.4% in February compared with January.

Use Your IRA Funds to Buy Real Estate Now

It sounds almost too good to be true: IRA holders can use their retirement funds to purchase real estate before the age of retirement without incurring distribution taxes or penalties. And they can realize their real-estate investment profits tax-deferred in their retirement account.

Solid Statistics On Home Values In Some Neighborhoods in Chicago

Here are a few statistics that I have generated recently through my market research for my clients and may help some in the Chicagoland area:

* Studio condominium units in East Lakeview have declined approximately 28% from ‘08 to ‘09
* 3-bedroom/2+ bath duplex down units in East Lakeview have not declined from last year to this year. In fact there has been a slight appreciation factor. Only half the amount of duplexes have sold, but they have not declined in price.
* Single family residences in Lincoln Park, on average, have declined 4% from ‘08 to ‘09
* Single family residences in Southport Corridor 3-bedrooms, 3-bathrooms, with a master suite and garage parking, have declined approximately 5.17% from 2008 to 2009.
* 2-bedroom/2-bath units with a parking space in the Southport Corridor have not declined. They have held their value for the last three years running.

Real Estate Summit Part Four in Washington D.C.

NAR's Real Estate Summit brings together real estate professionals in the residential and commercial sectors, opinion leaders, economists, academic leaders, members of the media, and current and former government officials to engage REALTORS in a comprehensive conversation about how to revitalize, regenerate and renew real estate markets across the nation.

Real Estate Summit Part One in Washington D.C.

Pound to Rally After 20% Slump Makes British Real Estate a `Screaming Buy'

While the Bank of England said it expects a “protracted” economic recovery in the U.K., where unemployment is the highest since Prime Minister Gordon Brown’s Labour Party came to power in 1997, investors from Millennium Asset Management to Mellon Capital Management Corp. are betting the pound’s decline is coming to an end.

@ Bloomberg News |

U.S. budget chief says signs of economic free-fall over

The Obama administration's budget chief said on Sunday there are signs that the free-fall in the economy seems to have halted.

Now is a good time to refinance debt

With the federal government spending as much as they are, there is no question in my mind that we will see a significant increase in interest rates as we are forced to finance the giant deficits that we are currently building.

@ St. Petersburg Times |

Secretaries Chu and Donovan sign agreement to help working families weatherize their homes

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and U.S. Department of Energy (DOE) Secretary Steven Chu today announced an important step forward in the partnership between HUD and DOE to streamline and better coordinate federal weatherization programs. These efforts will make it easier for low-income families to weatherize their homes, saving money for working families and creating tens of thousands of new green jobs.

Secretary Donovan announces $2 billion in recovery act funds to stablize neighborhoods hard-hit by foreclosure

Neighborhood Stabilization Program (NSP), round 2. Competitive grants awarded for activities eligible under division B, title III of the Housing and Economic Recovery Act of 2008 (Public Law 110-289, NSP round 1), to address home foreclosure and abandonment and for the provision of capacity building and support for NSP grantees. Rating factors will include grantee capacity to execute projects, leveraging potential, and concentration of investment to achieve neighborhood stabilization. Grantees must expend at least 50 percent of each grant within 2 years and 100 percent within 3 years of grant award. HUD may run two competitions - one addressing the provision of technical assistance (not to exceed $50 million) and one to provide programmatic funding for grantees (remainder of funding).

Treasury, HUD announce Housing Grants funded through Recovery Act

WASHINGTON - As part of an innovative partnership aimed at job creation and easing the pressures on the housing market, the Department of the Treasury and Department of Housing and Urban Development (HUD) today jointly announced programs that will provide billions of dollars in recovery funds to spur the development of thousands of affordable housing units in states around the country. Funded through the American Recovery and Reinvestment Act (The Recovery Act), the programs together will provide approximately $5 billion for states to finance the acquisition and construction of affordable housing for working families.

HUD ALLOCATES $1 BILLION IN RECOVERY ACT FUNDING TO SUPPORT STATE AND LOCAL COMMUNITY DEVELOPMENT

WASHINGTON - In an effort to stimulate community development and job growth, U.S. Housing and Urban Development Secretary Shaun Donovan today allocated $1 billion in funding to nearly 1,200 state and local governments through the American Recovery and Reinvestment Act of 2009(Recovery Act). These grants will be provided through HUD's long-standing Community Development Block Grant (CDBG) Program and will primarily benefit low- to moderate-income persons living in these communities.

HUD FY2010 BUDGET SHIFTS FOCUS TO RESPONSIBILITY, EFFECTIVENESS, AND TRANSPARENCY

WASHINGTON, DC - U.S. Housing and Urban Development Secretary Shaun Donovan today unveiled the Department's fiscal year 2010 budget, which focuses on responsibility, effectiveness and transparency. The proposed 2010 budget exercises strong fiscal discipline, consolidating or eliminating 27 programs and activities, and investing in initiatives to increase transparency and accountability.

Illinois Quarterly Housing Survey by County Single Home Sales Q1 2009

“A lot of first-time buyers are in the market now taking advantage of the low interest rates, moderated home prices and the $8,000 tax credit available for the next six months until December 1. REALTORS® are seeing more activity, more showings and we expect the spring housing market to begin full force as weather improves and people get motivated to move off the sidelines into homeownership,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®. “These market conditions really offer some great opportunities for first-time and move-up buyers.”

Illinois Quarterly Housing Survey by County Condo Sales Q1 2009

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), total home sales (including single-family and condominiums) were down 26.4 percent in the first quarter to 10,306, compared to 14,012 home sales in the first quarter of 2008. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Illinois Home Sales Improve as First Quarter Closes

SPRINGFIELD, Ill. – March sales showed sizeable gains over February, yet tighter lending standards had a resounding effect on first quarter home sales, according to the Illinois Association of REALTORS® (IAR). Home sales (which include single-family homes and condominiums) totaled 16,748, down 23.5 percent from 21,902 home sales in the first quarter of 2008. The first quarter median home sale price was $146,000, down 21.1 percent from $185,000 a year earlier. The median is a typical market price where half the homes sold for more, half sold for less.

New TSA changes could slow you down at the airport

It's a standard part of going through security: handing over your boarding pass and I.D.
But something is changing this month, and it's all about your name.
"When you make your reservation, you need to give your name exactly, and that means first name, middle name, if that's what's on your I.D., and your last name," said Nancy Nemecek, a travel agent.
As part of an ever-changing security policy, the TSA is about to require you to use your full name to get on the plane.
Until now, just your first and last name got you through.
That's how most people do it.
But starting May 15th, TSA security will expect your reservation to match the exact name on your driver's license or passport.
If you order your tickets online, over the phone, or with a travel agent, you'll be responsible for giving your full name or risk facing a big hassle at the airport.
"It could cause a delay or it may cause you not getting on at all. If you refuse to give the information, they can keep you from getting on the airplane," said Nemecek.
And starting in August, you'll also be required to give the airline your date of birth and your gender.
Right now this is just for domestic flights, but at the end of the year it will also be the rule for international flights.

Why Rent When You Can Buy

Great for first time buyers, this pieces outlines the financial benefits of owning a home versus renting...

Auctions Offer Deals for Home Buyers

FHA Key to Housing Rebound, Say Realtors®

The Federal Housing Administration is a primary source of mortgage financing for millions of America’s families and plays a key role in helping bring stability to the housing market. This is the message that the National Association of Realtors® delivered to the Senate Appropriations Subcommittee today.

“Without FHA financing, families would be unable to purchase homes and communities would suffer from continued foreclosures and blight,” said Lennox Scott, a member of NAR’s Real Estate Advisory Board and CEO of John L. Scott Real Estate in Bellevue, Washington. In his testimony, Scott shared NAR’s belief in the importance of FHA and concern for the safety and soundness of its programs due to its dramatic growth over a short period of time.

“We believe that FHA has done a good job stepping up to today’s market challenges. However, along with the dramatic growth in market share comes greater responsibility and the need for increased infrastructure and staff,” Scott said. Over the past 18 months, FHA has handled an increase in volume four times greater than 2007 levels, increasing its market share to over 30 percent.

Realtors® Support Mortgage Lending Reform

To help Americans continue to achieve their dreams of homeownership, there must be a balance between safeguarding consumers in the lending process and ensuring reasonable access to mortgage capital. That is the message that the National Association of Realtors® delivered to Congress today, reiterating its support of comprehensive legislation to reform mortgage lending.

NAR believes the current definition of mortgage originator as “any person who assists a consumer in obtaining or applying to obtain a residential mortgage loan” is too broad, since Realtors® as part of their normal level of service provide advice, counsel and assistance across all aspects of the real estate transaction. In addition, NAR supports the safe harbor provisions in the legislation, but as written, these provisions may be too narrow.

“The safe harbor should include more products than 30-year fixed-rate mortgages. We need to protect more home buyers from risky lending products, and that requires some flexibility in financing terms,” McMillan said.

NAR also believes that a strong and independent appraisal industry is vital to restoring faith in the mortgage origination process. “H.R. 1728 strikes a good balance by strengthening the accountability and oversight of appraisers while creating new consumer protections,” said McMillan.

Making Home Affordable Program Update

On February 18, the Obama Administration announced the Making Home Affordable (MHA)
Program, a comprehensive plan to stabilize the U.S. housing market. As promised, two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications and refinancings under the plan immediately. Servicers covering more than 75 percent of loans in the country have now begun modifications and refinancings under the Administration’s MHA Program.

30-Year Fixed Rate Mortgage Ties Record Low Reached Earlier in April

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending April 30, 2009, down from last week when it averaged 4.80 percent. Last year at this time, the 30-year FRM averaged 6.06 percent. The 30-year FRM now equals the record low that was set the week of April 2, 2009. It has never been recorded lower in Freddie Mac's survey, which goes back to 1970.

What You Can Do to Stay Healthy

Stay informed. This website will be updated regularly as information becomes available.

Influenza is thought to spread mainly person-to-person through coughing or sneezing of infected people.

Take everyday actions to stay healthy.

Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.

Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hands cleaners are also effective.

Avoid touching your eyes, nose or mouth. Germs spread that way.

Stay home if you get sick. CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them.

Follow public health advice regarding school closures, avoiding crowds and other social distancing measures.

Develop a family emergency plan as a precaution. This should include storing a supply of food, medicines, facemasks, alcohol-based hand rubs and other essential supplies.

Call 1-800-CDC-INFO for more information.

Swine Flu Updates by HHS Secretary Sebelius and DHS Secretary Napolitano hosted a Webcast