Warren Buffett says he'd buy Single Family Homes

Here's a long video interview with Warren Buffett by CNBC. He talks about a lot of things including why he would buy 200 single family homes if it were practicle - they are such a good buy right now with prices down and interest rates at record lows. Take a look at the video and if you're looking for the real estate stuff, it's at 5 minutes 10 seconds. Here's the CNBC article.

Save the Mortgage Interest Deduction!

Gino gives great insight on why we all - homeowners and homebuyers - should be interested and stepping up to take action to support saving the federal mortgage interest deduction.

By Gino Blefari
President & CEO
Intero Real Estate Services, Inc.
President Obama's budget proposal last week attracted more than a few passionate voices from real estate who oppose elements that would limit itemized tax deductions, including the mortgage interest deduction that enables homeowners to deduct part of their mortgage interest from their overall tax bill.

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Reducing FHA Interest Charges upon Sale or Payoff

Our Consigliere, Christopher Moles, has done some research on a senate bill that would benefit many homeowners who have FHA loans at the time they sell. Looks good to us! Hope it passes.


By Chris Moles
Brokerage Counsel
Intero Real Estate, Inc.

Congress has taken up a bill which would change the manner in which the FHA charges interest on its loans after final payoff. S.488, more commonly referenced as the “Reduce Excessive Interest Payments Act,” was recently introduced in the Senate and forwarded to committee for review. The Act could greatly reduce the final charges imposed on FHA borrowers when they pay off their mortgages. It may also eliminate the stress faced by agents and sellers who feel compelled to time their closings for the end of the month.

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Mandated Down Payments Unfairly Impact Buyers in High-Cost Areas

Happy President's Day! How are you celebrating? We're working!

We've been busy since Valentine's Day, and are finally able to get Gino's important message posted on this President's Day holiday. This 20% down rule is definitely limiting buyer's financing options in this area.

By Gino Blefari
President & CEO
Intero Real Estate Services, Inc.

The issue of mandated down payments is back in the spotlight as a recently released study found that requiring by law a minimum down payment of 20% would have a dramatic, negative short-term impact on the housing market. The study, released by the Center for Responsible Lending at the University of North Carolina, found that implementing such a mandate would push out 60% of would-be home buyers from the market.

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Happy Valentine's Day

Luxurious Home for Rent in Gilroy

Single Family Home for Rent in Hollister

Strategic Default - Time to talk about this again

We read an article on Reuters.com about strategic default this morning, and it resonated with us because we are representing a homeowner in this situation right now. The homeowner thought about a strategic default for over two years before taking the first step. It's a very difficult choice!

The article has some valuable information, and a list issues to consider.

If you are underwater on your mortgage please read this article. If you think that strategic default is the answer for you, please contact us right away, at the very beginning, for advice and help along the way.

A reprieve for unemployed borrowers

Fannie Mae and Freddie Mac recently extended their foreclosure forbearance programs to give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions.

Details:

• In a forbearance program, a lender agrees not to foreclose on a property and gives the borrower several months’ grace from or reduction in monthly mortgage payments.  The programs work best for temporary setbacks, like job loss, health problems, or natural disasters.
• There are drawbacks to the forbearances though. The most-significant drawback is a larger total debt from the smaller payments.  The unpaid balance continues to increase during this time.
• The new temporary mortgage payment is often set to 31 percent of the household income; in some cases lenders agree to accept no payments.  Fannie Mae’s extended unemployment program, first offered in the fall of 2010, limits any nonpayment or other forbearance plans to one year, with the second six months requiring approval by both Fannie Mae and the lender.
• However, even with the program in place, the lender could still report a mortgage as delinquent, which could adversely affect the borrower’s credit score.
• Because some agreements add onerous term and conditions, homeowners should also consult with a housing counselor certified by the Dept. of Housing and Urban Development.

The New York Times has a full article on this subject (we've just covered the bullets).

Need Directions? Ask a Realtor

By Gino Blefari
President & CEO
Intero Real Estate Services, Inc.

I'm always amazed at the amount of local community knowledge a typical Realtor has. If you need to know about the local preschool situation, where to get the best cup of coffee within earshot of a specific address, where to get free Internet while you enjoy a hot beverage or quick lunch, and where the best morning bun in town is served, ask a Realtor. Seriously.

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