Fed Pulling The Plug

We have talked about this for months. The Federal Reserve Board has finally reached the date that they will no longer purchase Mortgage Backed Securities. The devastation of the secondary market for home loans was one of the major effects of the financial meltdown which occurred over a year ago.

The Fed took definitive actions to keep rates on home loans down as they kept overall rates down while the government took numerous other actions to right the financial ship. Now the Fed is ready to see if the private markets will pick up the slack and allow home loans to be originated and sold on the open markets and at a price that will not halt the economic recovery, particularly in the real estate sector.

Note that rates have already increased moderately in the past two weeks. There have been many explanations for this increase, including tepid response to government bond auctions. However, it is entirely possible that the tepid response was due to anticipation of this April 1 date.

Now speculation moves to another level as it appears we will ponder as to whether rates will continue to rise and whether the Fed will start selling some of the hundreds of billions of dollars in bonds they currently own. What will happen? No one actually knows. However, with rates still very low, housing prices down and the tax credit scheduled to end at the end of the April, this month could be the last of the great home purchase opportunities in history. The employment numbers just released for the previous month represent good news and the last minute rush to sell homes could be even better news. Let's just hope that things continue to improve and at this point even a slow pace is better that going in the other direction.

Milicki & Associates, Inc

110 Evans Mill Dr. Suite 103

Dallas, GA 30157

www.Milicki.com

Homeowner's Symposiom

Want Answers to the hard questions?

We may have them for you!

Where: Paulding Chamber of Commerce
455 Jimmy Campbell Pkwy
Dallas, GA 30157

When: March 6th
10 a.m. - 12 p.m.

Free to the public

View Larger Map

By attending this home buyer’s tutorial and discussion group you will be able to make an informed decision.

We will provide information from seasoned professionals in every area of the home buying process.

There will be a Q & A session to answer your individual questions.

There is still available 100% financing or low down payment options for home buyers. Take advantage of the great housing inventory, low mortgage rates and LOW prices and find your home today PLUS learn how you can get up to $8000 back from the government!

If you are 3 months, 6 months, or even more than a year away from wanting to purchase a home, then this workshop is important for you!

If you would like more information and all the details on this Workshop or others in the future, please e-mail us at info@milicki.com or check our website for more upcoming events at http://www.milicki.com/

Sponsored by: Milicki & Associates; Regions Bank; Weissman, Nowack Curry & Wilco, P.C.; American Family Insurance; AmeriSpec

Tax Credit Extended and Expanded

As of – Thursday, November 5th – that bill has passed and will be sent to President Obama for his signature

Upon Passing the extension of the HomeBuyers Tax Credit there will be several changes to assist homebuyers. It is no longer limited to First-time buyers bu has been extended to others also looking to purchase a home.

Let's summarize the changes quickly:

Once President Obama, has signs the bill, the expiration date for the credit will move to April 30, 2010.

First-time buyers who have not had interest in a principle residence for three years are still eligible, and the maximum amount remains the same – $8,000 for married couples, $4,000 for those filing separately.

Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately.

The tax credit may not used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns. (Usually a copy of the HUD statement given at closing will suffice)


Milicki & Associates, Inc.
110 Evans Mill Dr Suite 103
Dallas, GA 30157
770-874-2022
866-966-3022
information@milicki.com
www.Milicki.com

Cash in: Tricks for buying a home at the bottom

Barbara Corcoran shares insider tips to help homebuyers in this market

By Barbara Corcoran

TODAY

While others argue over whether this really is the bottom, savvy buyers are taking advantage of the best market in years to purchase a home. If you’re an aspiring homeowner, here’s the know-how you need to snatch up a bargain — where to look, what to watch out for, and how to get financing that will make your home-ownership dreams come true.

The best kinds of homes to look for

1. A property with a clear ending! That is, a clear ending when it comes to estates, trusts, divorces and foreclosures.

2. A seller in trouble. Sellers who are behind on their property taxes, have a failed business or just need cash.

3. A scorned homeowner. Just like a scorned lover, the homeowner had another buyer who just backed out. They will almost always sell the house for even less.

4. A shopworn listing. A home that’s been on the market for more than 60 days or a home that’s had numerous or aggressive price drops always signals a good deal to be had.

5. A home with an overgrown yard. It always means the homeowner is ready to give up.

6. A vacant home. No one likes to pay a mortgage on an empty house.

Some don'ts to keep in mind

7. Don’t go for a short sale unless you have plenty of time. They can drag on and on because of the bidding process and you can end up paying the same money or more, with all the increased costs, repairs and the rise in interest rates, while waiting to close.

8. Don’t compromise on what you’re looking for just to get a “good deal.” It’s no deal if it doesn’t meet the criteria you want in your home.

Insider tips to spot the seller ready to take a low bid

1. Check the closets. See if the wife’s or husband’s clothes are no longer there.

2. Check the tax records. Find out how much the seller owes. You can get the records at the county clerk’s office, and in some municipalities the town records are online.

3. Look for give-away words. In advertising, words like “bring offer” or “drastically reduced” mean exactly that.

4. Ask your agent to pull the listing history on the house. It includes how many times the home has been listed and what the price reductions have been.

5. Let the seller talk! If the sellers are home at the showing, let them talk. Often they’ll say more than they should, like, “We close on our new home next month.”

How to get the financing you need as a buyer

1. Order the house appraisal first. The appraisal may come in lower than the price you plan to bid!

2. Ask the seller to pay part of your closing costs. It reduces the cash you need up front.

3. Ask not-for-profit organizations about financing. They’re good advocates for consumers who otherwise get overlooked or taken advantage of by major banks and mortgage companies. Check out NACA (Neighborhood Assistance Corp. of America), NHS (Neighborhood Housing Services) in your part of the country, and ACORN.

4. Review your own credit report early. Correct any errors in the report and fix everything possible before you shop for a home.

5. Ask for owner financing. Many older homeowners are not buying another home and like the idea of a steady 5 percent return using their old home as collateral.

6. Ask for a family contribution. Many parents are very happy to help the first-time homebuyer and their grandchildren secure their first home.

7. Prequalify for financing with your lender or mortgage broker before you begin your search.

8. Don’t take no for an answer. If you’re turned down by a local bank, you may still be approved by a national mortgage lender. If you’re turned down by a national lender, you’re often approved by your local bank.

Milicki & Associates, Inc.
110 Evans Mill Dr. Suite 103
Dallas, GA 30157
770-874-2022
866-966-3022
information@milicki.com
www.Milicki.com

Forbes: Atlanta ranks No. 1 among America's 'recession proof' retirement markets

Metro Atlanta ranks No. 1 on a new list by Forbes of America's 40 "recession proof" retirement cities.

Forbes said it considered such factors as average income for seniors, current and expected home prices, job-growth predictions through 2014, the cost of living and median monthly housing cost.

Atlanta ranked 17th for number of sunny days, 17th for income of residents 65 and older, seventh for median home price, 17th for home price change predicted for 2009-2014, 11th for cost of living and 23rd for median housing cost.

Atlanta was followed by Dallas-Fort Worth, Tampa-St. Petersburg, Houston, St. Louis, Austin, Las Vegas, Phoenix, Kansas City and San Antonio.

New York finished last among the 40 cities, with Milwaukee and Boston near the bottom

click here for the ranking of 40 cities.

Monday, October 19, 2009
Atlanta Business Chronicle


Milicki & Associates, Inc.
Real Estate Specialists
110 Evans Mill Dr. Suite 103
Dallas, GA 30157
770-874-2022
866-966-3022
www.Milicki.com
information@milicki.com

How to Make Your Offer Stand Out

"I get calls all the time from buyers who say they are DONE with their current agent. They tell me their current agent is not doing a good job because they have made multiple offers on homes and they have not gotten one house. I get very saddened by this only because I know from my own experience that it is tough out there right now for agents. There are so many numerous factors that are hindering the realtors and clients do not understand it.

First, people want to see a particular home. So the agent will call only to find out that the home really is not active and that it has multiple offers on it. The status really and truly should be changed to pending or back up or hold depending on the situation. I cannot tell you how many times I call only to find out a home is not available. Many times, I can leave messages for other agents and they never get back to me because they are "too busy" aren't we all. The board of realtors will be fining agents for not putting homes that truly are not active in their proper category so the other agents do not waste their time. I called on over 40 homes in Fontana the other day and one 1 was truly available.

The offer you make needs to stand out. What do I mean by stand out? Well, first you need to make sure you are working with a reputable bank...not ABC Mortgage in timbucktwo...you need to work with someone that people respect, such as a big solid bank like say for example Wells Fargo would be good. Anyone knows they are very strict with their lending. So, get a pre-approval, not a pre-qualfication letter. Also, when trying to buy a REO listing (Bank Owned) they do have you cross qualify with their lender which is normal. Many people do not understand this and get upset over it. Just do it, otherwise, your offer will not even be looked at by the bank.

Don't ask for a lot of concessions. By this I mean, don't ask for closing costs if you don't need them. That will net less to the bank and someone may outbid you on a property. If at all possible make your best offer. I always run comparables for my clients so they are not over paying. One thing many people think is if they are the highest and best offer out there they certainly will get the house. Not necessarily if it is over the appraised value the bank won't allow the sale to go to you. They know the market and know what the home should sell for, they want to get the closest to that they can. So, make sure you know what the house is worth and don't overbid.

The type of financing really matters to the banks these days for an REO listing or (Bank Owned). Cash is best, but most people don't have all cash. Conventional financing is best over FHA/VA loans. However, it is what it is and just keep trying. The inventory has been down therefore, homes are getting multiple offers. You want to get over to see a house as soon as it is listed and make an offer right away, don't wait or it will be gone.

Don't blame your agent if he/she writes up your offer how YOU wanted it. Remember, your agent represents you and you need to make sure you are happy with it before it is submitted. It is not totally an agents fault, we must take responsibility for our own actions and not be so tough on the agents. It is hard to get a house accepted with you are competing with so many other offers. You need to figure out what you can live with and not ask for on a home to make your offer stand out. And, you need to ask yourself how much you are ready to pay. See the comparables that your agent should provide you, and if they don't ask to see them.

Keep your offer as simple as possible and make sure it nets the bank or seller the highest amount possible and that should help you have a stronger offer."
~ Joan Patterson

Milicki and Associates
110 Evans Mill Drive, Suite 103, Dallas, Georgia 30157
Office: 770-874-2022 | Fax: 770-874-2027
www.milicki.com
csmith@milicki.com