If you find yourself asking that question, as many of us do these days, or if these terms sound like German to you:

• Subprime Mortgages
• Collateralized Debt Obligations
• Frozen Credit Markets
• Credit Default Swaps

this video may help shed some light on things:

And here’s part 2:

Now, while I personally believe the problems began before 9/11, this is still a pretty good explanation of how we got to where we are now.

About a week ago, I told  you about the new version of the Home Buyer Tax Credit, and at that time I had an idea of how this could REALLY be a benefit to someone thinking about buying a home, especially if he/she didn’t have a lot of cash for down-payment or closing costs. I wanted to make sure I had correct information though, before posting it here for all the world to get excited about…  I was waiting on my CPA to get clarification on the program.

So here’s the scenario:   If you meet the qualifications for the Home Buyer Tax Credit (click HERE for more details), you can claim the credit on your 2008 income tax return, EVEN if you haven’t bought a house yet! Yep, that’s right, you can claim it and get the money NOW, then put it toward your down payment and/or closing costs.

The other biggie is that this credit doesn’t have to be re-paid.  It’s free money for home buyers that meet the criteria!

OK, so here’s my disclaimer; this info came from my CPA, Rusty Hale.  I’m putting this info out here for you to take advantage of, but please investigate and make sure it will work for you.  Get advice from your CPA before taking any action, just to be sure you’re not going to get jammed up somehow.  One bad scenario I’ve though of is if you were to take the credit, get the money, then you can’t qualify for a mortgage.  My guess would be that you’d have to pay that money back, but again, CHECK WITH YOUR TAX PROFESSIONAL TO BE SURE!  If you don’t have one, call Rusty @ 405.330.6000.

There’s rarely a shortage of things to talk about these days in regard to the government and the housing market.  Now that we have the new Home Buyer Tax Credit in place, President Obama is moving on to the Homeowner Affordability & Stability Plan.

If you’re not up to speed yet on what this plan may or may not entail, feel free to check out my friend Kristal Kraft’s blog for details, and watch this video to see differing opinions on whether or not it will work:

Well, it’s been brewing for a couple of weeks, and the final pieces are in place for the new Home Buyer Tax Credit.

While it’s not as far-reaching as I’d hoped for, and there are plenty of questions about whether this measure will really do enough, here are the nuts & bolts of the new Home Buyer Tax Credit:

• It’s for first-time home buyers and those who haven’t owned a home during the past 3 years.
• It doesn’t have to be paid back.
• The credit is equal to 10% of the purchase price, up to a maximum of $8,000.
• It’s available on homes purchased between January 1st, and November 30th, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The big benefit here is that it’s not a loan, like the previous program, and it’s my understanding that it’s a true tax credit, as opposed to being a tax-deduction, meaning you get the full credit, rather than just a reduction in your taxable income.  Check with your CPA for clarification though, to be sure.

So, if you meet the above qualifications, and you’ve been on the sidelines waiting to see what was going to happen, now’s the time to get out and take advantage!

In these uncertain times, there’s a lot of confusion and misinformation out there for you, the consumer, so Kenneth Wohl, of SpiritBank asked me to pass this brief summary along, in hopes of clearing some things up:

Kell Kelly, CEO of SpiritBank, recently said ‘Main Street’ Banks have money to lend and he is right.  He utilized the example that National Economic Turbulence can lead to Potential Business Failures which can, in turn, lead to Tighter Credit Regulations which can then lead right back to National Economic Turbulence.  The fact that no credit is available is a myth.

Oklahoma has been spared from much of the real estate doom & gloom experienced by many other States.  Our modest but largely sustainable real estate appreciation is one bright spot in an otherwise slumping national real estate market.  That said, we are still impacted by tightened credit standards and lending program changes made by Fannie Mae, Freddie Mac and to a lesser extent, FHA & VA.

Borrowers who have maintained a good credit rating, can document their income and assets and have money for a modest down payment have the same access to mortgage credit as they have always had.

What does all of this mean?

• Oklahoma Banks have money to lend – including home mortgage money.
• Mortgage programs offered by FHA & VA have made very few recent credit or guideline changes.
• Fannie Mae and Freddie Mac changes have taken away 100% loans, stated income loans and generally tightened standards to what they used to be and  should always have been.
• Real estate is still a great value in Oklahoma and an asset that is likely to grow in value over time.
• Now is a great time to buy a home.

Storm Shelters On My Mind
Originally uploaded by rhukill

Since Tuesday’s bout with Mother Nature, there seems to be a lot of my clients with storm-safety on their mind, which in turn has me taking extra-special notice of things like you see here.

This huge underground storm shelter is one of the perks of a cool 4-bed home I showed in the Copper Creek addition of West Edmond this morning.

I have a feeling I’ll be noticing more of these during my day-long home tour spree that will run until about 6pm tonight.

Yesterday was a miserable, storm-ridden one for many folks in Oklahoma. Tornadoes can be fickle, and these were no different. Doing extensive damage to one home, while leaving the one next door untouched is a common characteristic, and while driving a few Edmond neighborhoods today, I saw a wide range of damage.

You’ll see pictures here of trampolines that were misplaced throughout neighborhoods, as well as homes with the roofs literally ripped off of them. I’ll add more photos throughout the week as more of the damage is uncovered.

Our prayers go out to those families who were effected by this storm, and we hope for a speedy recovery process.

A little over a week ago, I mentioned that Congress was hinting at sweetening the home buyer tax credit a bit, and it appears now that we’re a few steps closer to such a measure, as the Senate voted unanimously to add an improved Home Buyer Tax Credit to the proposed stimulus plan.

While this topic is one that stirs debate, and nobody seems to really have a grasp on what the best solution is, helping the housing industry is at the top of many lists, since the real estate industry clearly has a direct effect on the overall health of our economy.

Here’s an outline of some of the highlights of the proposal:

• Home buyer tax credit of $15,000 or up to 10 percent of the purchase price
• Available to all home buyers and would not have to be repaid as long as a buyer lives in the house for at least two years
• Offers the credit on purchases from one year of the date of enactment and could be applied to the home buyer’s 2008 taxes

So, the question now, is this a healthy approach to help an ailing housing industry?  Will this motivate home buyers to take advantage, and ultimately, will it help us move toward a real recovery, rather than just acting as a band-aid and prolonging a bad situation?

What say you?

I’m not an alarmist and I don’t like scaring people, but so many home sellers don’t realize how important it is to make sure the Realtor® they’ve hired gets the opportunity to screen ‘potential buyers’ or other agents BEFORE they see the home for sale.

Unfortunately there are a few unscrupulous people in this world, and this story is just one example of a home seller not thinking to have their Realtor® screen someone who claims to be interested in their home.

You’ve hired your Realtor® to protect not only your interest, but your privacy as well. If someone approaches you directly, asking to tour your home, just give them your agent’s number, and let him/her determine if they’re legitimate.

It’s not uncommon for me to post positive news on the Edmond real estate market, but finding good news at the national level has been challenging the past couple of years.

However, a glimmer of light was published earlier today. According to the NAR, pending U.S. Home sales saw an increase of more than 6% in December.

Of course, seeing an uptick in the markets that have really suffered lately is a great boost in many aspects.  If you wonder how important the housing market really is to our economy, take a look at this report on how the positive news affected the stock market.