New FLEX MLS

We've had the NEW Flex MLS for a couple weeks now, and after getting the bugs worked out I'm really starting to enjoy it. I think this will be a huge benefit to buyers and sellers a like and will definitely provide a lot more information at everyone's finger tips. Albeit, there are some thing I wish they would have changed that they didn't and there are certain screens that I still can't find, but the buyer's I've been working with have really enjoyed it.

Hope For Homeowners

The new FHA refinance plan is entitle "Hope For Homeowners." The idea is to help homeowners refinance their home to CURRENT market value and hopefully save their homes. This option has a lot of small print, so I'll try to break some of it down for you.

• New Loan Requirement - Requires 30 year fixed rate loan NOT exceeding 90% of the property's CURRENT value.
  
• Write-Down - Noteholders need to reduce the principal balance to achieve the 90 percent loan-to-value requirements. No prepayment penalties.
  
• Noteholder has to pay 3% upfront premium from the proceeds of the refinance. Borrower pays 1.5% premium annually built into the payments.
  
• Shared Appreciation - Requires borrower to share future equity with FHA when the property is sold or the loan is refinanced. First year FHA shares equity 90/10 in their favor which graduates at 10% per year for the next 5 years until borrower and FHA share equity at 50/50 until home is sold or refinanced.
  
• Sunset - Program runs from 10/1/2008 through 9/30/11.

So, in a nut shell. If the lender agrees to write down the loan to 90% of current market value and borrower can document income that they can afford the home and meet credit guidelines, the loan can be refinanced. At first glance it looks like a lender would never agree to this, but lender's do NOT want to foreclose on properties and would prefer to keep a loan on the property if they know the loan will be current. It costs a lener a lot more than 10% of current market value to foreclose on a typical home.

Housing "Rescue" Bill

There is a lot to the new Housing Bill, some good, and so very bad. I will have a few posts over the next few days explaining it as I get through the lengthy bill myself. The first provision I would like to discuss is the one I see as being a huge issue.

The new bill eliminates seller down payment assistance for FHA loans. These were the last 100% financing loans that were still available. I realize that eliminating these may help down the road, let's look at the current predicament that we're in. Currently, the majority of homes being purchased under $225K are FHA loans. We were finally starting to see a turn in the lower end market with a lot of homes selling with multiple offers in this price range. Once these entry level homes start to sell, the sellers are then able to "move up" into larger more expensive homes and thus helping the current market tremendously. The higher end homes can NOT start selling until the entry level homes start to sell and by eliminating the FHA seller contributions you're eliminating tens of thousands of first time buyers.

I will be talking about more aspects of this bill down the road, including the $7,500 tax REBATE/LOAN for first time buyers. If you have a home under $250K and you're thinking about selling, I'd recommend getting on the MLS immediately to take advantage of the influx of buyers would should see over the next 30 days (bill goes into effect Oct. 1, 2008).

As always, Sell your home on the MLS & Realtor.com only $295 www.295List.com