Real Estate Information

Please make it stop.  Charlie Sheen has had a psychotic break and is in a hyper-manic state.  He is exibiting symptons of Bi-Polar Disorder that include rapid, often disjointed speech, erratic behavior, heavy drug use and delusions of grandeur.  Anyone who passed Psychology 101 in college knows that Charlie Sheen is ill, not crazy and probably not currently on drugs. 

 If he had a brain tumor, which can also cause irratic behavior, he would not be paraded around like a two headed baby in the circus freak show.  How is this a "hard news" story?  The interviews are replayed over and over by all of the news outlets instead of news while hardly reported and mostly forgotten are our troops fighting and dying around the world for our freedom because, watching the train wreck that is Charlie Sheen is better TV.

It is time for Charlie's family to intervene and have him committed to a hospital so he can get treatment.  Since he has threatened people, including ex-wife, Brook Mueller, he is officially a danger to others and the family can intervene.

After the manic state peaks, there will be deep depression, at which time, Sheen could become a danger to himself.  A treatment facility will be able to balance the chemicals in his body (not drugs) with medication. I suspect Charlie and his family have known for years that he is mentally ill and there is a good chance that he has been treated with medication in the past.  People with Bi-Polar Disorder often go on and off their medications so until they become drug compliant, things will continue to go bad for them.  Some patients report that the drugs take away their personality, make them sleepy, dumbed down, slow to react, etc.  In some cases it is just a matter of changing medications until they get it right.

The issue for a Bi-Polar is that the first stages of the manic episode feels terrific, like they are smarter, better and having way more fun.  As it progresses the behavior can get bazaar as seen with Charlie Sheen. Chances are, when he is finally stabalized, he won't remember some or most of what he said and did while in a manic state. Most sufferers don't grasp the magnitude of their behavior while manic. 

Unlucky for Charlie Sheen, he will have the audio and video record of his psychotic break because every news outlet decided to parade him around like a two headed baby in the freak show at the circus.

The 30 year fixed-rate mortgage moved above 5 percent this week, rising to its highest level since April 2010. The rate has been moving upward for the past few weeks.

The 30 year rate averaged 5.05 percent this week, up from 4.81 percent the week prior, according to Freddie Mac’s weekly mortgage market survey.

The 15 year fixed rate is also up to 4.29 percent which is up from 4.08 percent last week.

Even though rates are on the rise, the prices of homes in and around South Metro Atlanta real  market are very favorable for buyers. Good rates, great prices equate to a great time to purchase a house!

Many buyers today have a home they must sell so they can buy.  While sellers may not be able to get what they expect for their homes, there are plenty of opportunities to buy low and make up the difference.  

A $100,000 mortgage at 5.5% equals a monthly payment of $567.79                                                                   

 A $100,000 mortgage at 6.5% equals a monthly payment of $632.07

The difference is $64.28 per month or $23,140.80 over the life of the loan

For sellers, every time the interest rate goes up, more buyers are moved down and out of your price range.  List now and buy now.  Low rate are vital to keeping the housing market moving.                                           Call me today to discuss buying or selling in South Metro Atlanta, Email: leslie@leslieedwards.com or           Visit my website to learn more about me and to see all the properties for sale in the Multiple Listing Service at www.SouthMetroAtlanta.com                                                                                                                                If you are buying or selling in any other town, city, state or country, I can recommend the best agent in any area and there is never a charge so call now for a FREE referral to anywhere.                                            leslie edwards 770.460.9448 RE/MAX Around Atlanta

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In the future, it will be harder to buy a home. Read this February 10, 2011 article from US News and World Report, By Rick Newman and see if this might be the right time for you to take advantage of low interest rates, low down payments and low home prices.

How Buying a Home Is Likely to Change

By Rick Newman
Thursday, February 10, 2011

Last year's sweeping financial-reform law revamped much of the banking system. But there's one industry it didn't touch: housing finance, for good reason. Unlike the convalescing banking sector, the housing market is still a wreck, with any false move likely to destabilize things even further and cause fresh damage.

But the system can't continue the way it is either, so policymakers in Washington are gingerly starting to propose ways to fix the way we finance the purchase of homes and assure that there's never another housing bust like the one that began in 2006 -- and still isn't over.

The biggest and thorniest question is what role the government should play in the housing market. The government has had a hand in housing since the 1930s, when it began to subsidize home purchases for some buyers. But today the government dominates housing finance, with our system effectively nationalized. The government backs nearly every new mortgage, bearing much of the risk that lenders would ordinarily take on. That has kept mortgage money flowing during a severe credit crunch, preventing a much bigger disaster in housing, and a deeper recession. But it has also cost taxpayers billions of dollars, created a perverse system ripe for political abuse, and crowded out private financing that might be deployed more efficiently.

So with the economic recovery gaining strength, it's finally time to address the problem-to-be-named later. The Obama administration has come up with a set of options for winding down Fannie Mae and Freddie Mac, the insolvent housing agencies that back many middle-class mortgages but suffered catastrophic losses in 2008 and were taken over by the government. Some Republicans would like to see Washington end its role in housing altogether, while many economists favor some kind of hybrid system that transfers much but not the government’s entire role to the private sector. A few small changes could happen this year, with the biggest reforms probably not likely until at least 2013, after the next presidential election. Even then, changes will probably be phased in slowly, to minimize disruption -- and panic.

Still, we may be on the verge of a transformation in the way Americans pay for the biggest purchase they'll ever make, which determines how millions of families prioritize their household finances. Since many families spend years saving for a down payment, long-term planning is prudent. Here are some of the possible changes both buyers and sellers should anticipate:

Rising mortgage rates. During the housing boom that ended in 2006, mortgage rates were artificially low because lenders failed to price in enough of a cushion to account for the kind of steep price declines that have occurred. Even the most responsible lenders figured the worst-case scenario might be a 10 percent decline in prices, and they priced their loans accordingly. So far, home values have declined by about 30 percent from the 2006 peak, and they could still fall another 5 to 10 percent. That's one reason losses at Fannie, Freddie, and other mortgage lenders were so severe. While the average rate on 30-year mortgages just rose to 5.05 percent, the highest level in 10 months, rates are still extremely low. That's largely because the government is effectively subsidizing them through taxpayer bailouts, Federal Reserve policies, and guarantees against losses on most new mortgages.

If the government continues to back mortgages at current levels, rates might stay low -- but taxpayers will be on the hook for the cost of the next meltdown. A more likely outcome is a hybrid system in which private lenders bear more of the risk, while the government insures them against catastrophic losses and charges a fee to cover the cost -- similar to the way the FDIC insures banks. A recent study by Moody's Analytics calculates that such a system would raise mortgage rates by about 30 basis points, or 0.3 percentage points. If the whole system were privatized, Moody's estimates that could push rates up by about 120 basis points, or 1.2 percentage points, compared with a government-run system. On a $200,000 mortgage, a 30-basis-point bump would add about $39 to the monthly payment; a 120-point bump would add about $159. The spread would likely be greater for borrowers with weaker credit. And remember, those hikes would come in addition to other factors likely to drive long-term rates up over the next few years.

Higher down payments. Last year's Dodd-Frank financial-reform law did contain a few provisions that affect mortgages, including one that's likely to lead to formal down-payment requirements for many traditional loans. The government hasn't yet spelled out the details, but it probably will sometime this year. It seems likely that the required down payment on the majority of mortgages could be 20 percent, and perhaps as high as 30 percent. It will still be possible to get a loan with less money down, but because of new ways that lenders will have to handle such loans, interest rates will probably end up higher than they would have under the old rules.

Of course, many borrowers can't even get a loan these days unless they come up with a meaty down payment, so formal rules may not make that much of a difference, in reality. The biggest impact might be felt by hopeful buyers without a lot of cash who have been waiting for standards to ease, so they can get into a home with just 5 or 10 percent down. It might be a long time before standards ease that much, or banks make loans affordable for buyers financing most of the value of a house.

Less backing for expensive homes. The government changed the rules during the financial crisis to allow federal backing for mortgages as high as $729,750 in some high-cost areas, which means loans up to that amount count as "qualifying" loans suitable for the lowest rates. That ceiling is set to drop back to $625,500 on September 30. Expect it to happen, since Republicans who now control the House of Representatives want to reduce the government's role in housing finance, not perpetuate it. Bigger loans will still be available -- but with higher rates. And the ceiling on qualifying loans could shrink further, since that might be one way to shrink Fannie and Freddie.

Fewer fixed-rate mortgages. If the housing-finance system were to end up largely privatized, it would probably mean far fewer 30-year, fixed-rate mortgages -- which are the ones most popular with consumers. Banks don't like such mortgages because consumers can refinance if rates go lower, but banks can't hike rates if they go higher. "The 30-year, fixed-rate mortgage exists because of the government backstop," says Mike Konczal, a fellow with the left-leaning Roosevelt Institute. "Getting rid of it would shift more of the risk onto households."

In countries where the government plays a lesser role in financing homes, such as Canada and many European nations, the majority of mortgages are adjustable, with rates that reset every few years. That requires more cushion in the family budget for rising costs -- and more responsible homeowners. But it might be worth it, since many of those nations avoided the kind of bust that has left millions of Americans with mortgages that exceed the value of their home. The odds of Congress killing the 30-year mortgage outright are probably low, but the rules under a hybrid system could restrict access to a smaller subset of top-tier borrowers. People who once might have qualified for the best mortgages might have to settle for less. Good credit will remain more important than ever.

Fewer homeowners. Loose lending and aggressive government policies pushed the homeownership rate to a peak of about 69 percent in 2005, a level that was probably unsustainable. It's now back to about 66 percent, and with foreclosures still mounting, the homeownership rate could very well dip below the historical average of 64 percent or so -- and stay below long-term norms. One bit of good news for home buyers is that a combination of steep price drops and low interest rates have suddenly made homes very affordable. But credit is obviously tight, and new rules could keep it that way.

There's one other possible change that could discourage homeownership: The reduction or elimination of the mortgage-interest tax deduction, which costs the government about $80 billion per year. That tax break has been in place for decades, as a way to promote homeownership. But with Washington running record annual deficits and facing mounting pressure to start paying down its debt, giveaways like the mortgage deduction might have to go. At least two deficit-reduction panels have recommended a lower homeowner subsidy, which would hit middle- and high-income homeowners the most. If it ever happens, the result could be smaller, less expensive homes for many -- plus more renters.

Less volatility. If policymakers do their job well, they'll ultimately produce a system less susceptible to hot money, speculators, bubbles, and shocks. For buyers, that means a return to the days when you bought a home to live in for a decade or two, not to occupy for a few years and then turn a profit on. "If I were a couple looking at a home, I'd be extra skeptical about investing," says Konczal. "I'd be prepared to sit in the home for 10, 20, even 25 years." It sounds restrictive, but many Americans might decide that a home for life is better than no home at all. And that they could live with a little stability.

Call me and let's discuss your situation and see how I can help.  I closed 67 properties in 2009 and 62 in 2010 and I would love to close one for you to.

leslie edwards

Environmentally Aware, Socially Conscious, Politically Active Real Estate Agent

770.460.9448

CDPE Certified Distressed Property Expert

CRS   Certified Residential Specialist

Epro  Certified Internet Professional

ABR   Accredited Buyer Representative

GRI    Graduate of the Realtor Institute

Dave Ramsey Endorsed Local Provider

Selling South Metro Atlanta including:

Clayton, Fayette, Henry, Coweta, Merewether, South Fulton & Spalding Counties

All the towns and cities south of the Atlanta International Airport, including:

Brooks, College Park, Fairburn, Fayetteville, Jonesboro, Locust Grove, McDonough

Newnan, Sharpsburg, Stockbridge, Palmetto, Peachtree City, Tyrone and more

Moving Families Since 1978

Let My Experience Work For You

fax:  770.460.0739

www.SouthMetroAtlantaMLS.com

www.leslieedwards.com/blog

leslie@leslieedwards.com

RE/MAX Around Atlanta

Save your credit, relieve the uncertainty, and most of all, help your family.

Call me for Short Sale and Pre-Foreclosure Solutions and let's get started on the path to recovery.

http://www.leslieedwards.com/Blog/What-is-a-Short-Sale-and-Why-You-Might-Want-One

Whether the housing market will get better or worse depends on which "expert" is predicting the future.  It seems like most are now agreeing that we will see a new influx of foreclosures in 2011.  The failure of government programs to help struggling homeowners, the failure of banks to negotiate short sales, the fact that sloppy paperwork put a hold on foreclosures in Q-4 2010 and continued record unemployment all play a part in the increasing number of foreclosed homes.

There used to be stigma attached to foreclosure and bankruptcy but the bad economy has made both so common that more and more people are willing to walk away from their homes.  Foreclosures continue to drive down prices and  homeowners who see values drop well below the amount they owe, are walking away in droves.

It used to be rare and now it's your doctor, minister, friends, neighbors and your parents.  Something has to change and no matter what happens next, it will take years for the real estate market to recover. 

Regardless of market conditions, there are always people who want or need to sell. To sell a home today sellers and real estate agents have to understand the new normal.

There are plenty of buyers looking and plenty of homes are selling in a climate where many of them are looking for a deal more than a home.  Approximately 50% of the homes in the south metro real esatate market do not sell. It is a price war and a beauty contest at the same time. The best home at the best price sells.

Read article from CNNMoney.

http://money.cnn.com/2011/01/13/real_estate/foreclosures_2010/

If you know someone who is behind on their mortgage payments, have them call me for a FREE confidential consultation.  As a Certified Distressed Property Expert, I help people avoid foreclosure. 

leslie edwards

Environmentally Aware, Socially Conscious, Politically Active Real Estate Agent

770.460.9448

CDPE Certified Distressed Property Expert

CRS   Certified Residential Specialist

Epro  Certified Internet Professional

ABR   Accredited Buyer Representative

GRI    Graduate of the Realtor Institute

Dave Ramsey Endorsed Local Provider

Selling South Metro Atlanta including:

Clayton, Fayette, Henry, Coweta, Merewether, South Fulton & Spalding Counties

All the towns and cities south of the Atlanta International Airport, including:

Brooks, College Park, Fairburn, Fayetteville, Jonesboro, Locust Grove, McDonough

Newnan, Sharpsburg, Stockbridge, Palmetto, Peachtree City, Tyrone and more

Moving Families Since 1978

Let My Experience Work For You

fax:  770.460.0739

www.SouthMetroAtlantaMLS.com

www.leslieedwards.com/blog

leslie@leslieedwards.com

RE/MAX Around Atlanta

Homes in some stage of foreclosure accounted for 25 percent of all U.S. residential home sales in the third quarter of 2010, and the average sale price of these homes was more than 32 percent below the average sale price of properties not in the foreclosure process, RealtyTrac reports. A total of 188,748 U.S. properties that were in some stage of foreclosure sold to third parties in the third quarter, down 25 percent from the previous quarter 31 percent below the third quarter of 2009. 

A total of 113,933 bank-owned properties were sold in the third quarter, a drop of 26 percent from the previous quarter and 35 percent from a year ago. REO sales accounted for 15 percent of all sales in the third quarter. The number of pre-foreclosure properties — those in default or scheduled for auction — also fell 24 percent in the third quarter. A total of 74,815 pre-foreclosure properties were sold during the quarter, which accounted for 10 percent of all residential sales. 

Nevada, Arizona and California posted the highest percentage of foreclosure sales with 54 percent, 47 percent and 40 percent, respectively, even though foreclosure sales were down in all three states compared to the previous quarter and to a year ago. 

RealtyTrac CEO James J. Saccacio, attributes the decline in foreclosure sales to a dip in buyer demand after the expiration of the first-time homebuyer tax credit and to well-publicized problems with foreclosure transaction processing, which might have scared off potential buyers. “The foreclosure-processing controversy, which was brought to light at the very end of the third quarter, could chill demand even further — particularly for foreclosure properties. A quick but responsible resolution to that issue would be ideal to help the market continue to properly clear out foreclosure inventory and get distressed properties into the hands of qualified buyers and investors who will likely add value to those properties and the neighborhoods they are in,” Saccacio says. THU, DEC 2, 2010

A Different Christmas Poem

The embers glowed softly, and in their dim light,

I gazed round the room and I cherished the sight.

My wife was asleep, her head on my chest,

My daughter beside me, angelic in rest.

Outside the snow fell, a blanket of white,

Transforming the yard to a winter delight.

The sparkling lights in the tree I believe,

Completed the magic that was Christmas Eve.

My eyelids were heavy, my breathing was deep,

Secure and surrounded by love I would sleep.

In perfect contentment, or so it would seem,

So I slumbered, perhaps I started to dream.

The sound wasn't loud, and it wasn't too near,

But I opened my eyes when it tickled my ear.

Perhaps just a cough, I didn't quite know,

Then the sure sound of footsteps outside in the snow.

My soul gave a tremble, I struggled to hear,

And I crept to the door just to see who was near.

Standing out in the cold and the dark of the night,

A lone figure stood; his face weary and tight.

A soldier, I puzzled, some twenty years old,

Perhaps a Marine, huddled here in the cold.

Alone in the dark, he looked up and smiled,

Standing watch over me, and my wife and my child.

"What are you doing?" I asked without fear,

"Come in this moment, it's freezing out here!

Put down your pack, brush the snow from your sleeve,

You should be at home on a cold Christmas Eve!"

For barely a moment I saw his eyes shift,

Away from the cold and the snow blown in drifts...

To the window that danced with a warm fire's light

Then he sighed and he said "It's really all right,

I'm out here by choice. I'm here every night.

It's my duty to stand at the front of the line,

That separates you from the darkest of times.

No one had to ask or beg or implore me,

I'm proud to stand here like my fathers before me.

My Gramps died at ' Pearl on a day in December,"

Then he sighed, "That's a Christmas 'Gram always remembers.

My dad stood his watch in the jungles of ' Nam ',

And now it is my turn and so, here I am.

I've not seen my own son in more than a while,

But my wife sends me pictures -- he's sure got her smile."

Then he bent and he carefully pulled from his bag,

The red, white, and blue... an American flag.

"I can live through the cold and the being alone,

Away from my family, my house and my home.

I can stand at my post through the rain and the sleet,

I can sleep in a foxhole with little to eat.

I can carry the weight of killing another,

Or lay down my life with my sister and brother...

Who stand at the front against any and all,

To ensure for all time that this flag will not fall."

"So go back inside," he said, "harbor no fright,

Your family is waiting and I'll be all right."

"But isn't there something I can do, at the least,

Give you money," I asked, "or prepare you a feast?

It seems all too little for all that you've done,

For being away from your wife and your son."

Then his eye welled a tear that held no regret,

"Just tell us you love us, and never forget.

To fight for our rights back at home while we're gone,

To stand your own watch, no matter how long.

For when we come home, either standing or dead,

To know you remember we fought and we bled.

Is payment enough, and with that we will trust,

That we mattered to you as you mattered to us."

Mortgage interest updates courtesy of Mark King, Fairfield Mortgage. For a quick response call Mark at 770.314.3991.

Email M.King@FairfieldMortgage.com

After reaching the lowest levels in decades, mortgage rates have shot higher over the past few weeks, but why?  The simplest explanation is that when investors look ahead, they see few reasons for mortgage rates to move lower and many possible causes for them to move higher.  To fully understand this explanation, though, it is important to understand the unusual developments during the month of November and to look at all of the factors influencing mortgage rates at this time.  

The story begins in late August when the Fed hinted that they would initiate a new stimulus program to purchase US Treasury securities, a process now famously known as quantitative easing.  The news of this stimulus program created a strong demand for bonds, including mortgage-backed securities (MBS), and mortgage rates fell lower.  Fast-forward to November 3rd when the Fed announced that they would indeed buy $600B. of US Treasury securities between now and the middle of 2011.  At that time, many predicted that rates would fall even lower during the winter months ahead.  A couple of days later, however, mortgage rates actually began to do the opposite and rose for the following four reasons:

1.  Foreign and domestic opposition to quantitative easing.  The announcement of the program was met with substantial opposition from other countries and from many US politicians and economists.  Investors had viewed the $600 billion figure as a first step which would likely be increased in the future.  It is clear now that the Fed will face strong resistance to an expansion of the program, in fact, this resistance could be strong enough to end the program early.  

2.  Stronger than expected economic data.  Stronger growth decreases the need for additional Fed stimulus, and it generally leads to higher inflation.  A few key reports released just after the Fed announcement caused investors to raise their outlook for economic growth.

3.  Concerns about lower foreign demand for US securities.  The quantitative easing program pumps dollars into the economy, and the increased supply weakens the value of the dollar relative to other currencies. When foreign investors sell US securities, they must convert the US dollars they receive into their own currency. If the value of the dollar falls, then the value of their US investment falls in relative terms to their own currency. As a result, foreign investors may reduce their purchases of US securities, including mortgage-backed securities (MBS), which would cause yields to increase.

4.  Rising foreign rates.  China's announcement of a rate hike was another negative for US mortgage rates.  Yields must rise in other markets to compete with higher yields in Chinese markets.

The recent news has not been uniformly negative for mortgage rates, however.  Current inflation levels remain extremely low.  In fact, the Consumer Price Index data released last week showed that annual core inflation dropped to a record low in October.  Bottom line, though, when mortgage rates reached such extremely low levels, it left them in a position to reverse direction very quickly, and that is what has happened in November.  December and January should be very interesting...

               

Understanding Appraisals    

If it’s too high, underwriters get nervous and get out their red pen.  If it’s too low, realtors get nervous and call their loan officer.  If it's right around the sales price, everyone's happy!  What is it?  The appraisal, of course!  An appraisal is a key component of the mortgage process.  It provides assurance to the lender that if the loan isn’t paid back, the lender could recoup any losses through the sale of the property.  Here are some key facts regarding this important piece of the loan approval process.

Appraisers are independent experts
Appraisers are beholden to no one.  They are independent third-parties hired by lenders to render an opinion on what a home is worth, based on specific data.  Recent guidelines put into place by Freddie Mac and Fannie Mae prohibit anyone tied to the sales side of the mortgage process (loan officer, processor, etc) discussing the appraised valued with the appraiser.  Appraiser independence is a big deal in the mortgage world today and has forced many lenders to use impersonal national appraisal firms that are low on customer service.  At Fairfield Mortgage, however, we only use the best appraisers in Georgia that have been cherry-picked by county and are the very best in each given area.

Appraisers use data and experience
Appraisals are based on opinion, but that opinion is steeped in data that supports the conclusion.  A common practice for appraisers is to compare similar properties that are superior and inferior in features, size and condition to the subject property, making adjustments between them to support the final value.  This practice, called bracketing, would work like this.  A comparable property might have a fireplace whereas the subject property does not.  Or, the square footage might be greater in the subject property compared to the other comparable properties.  Appropriate positive or negative adjustments are made to the subject property's value accounting for differences in features (or lack of them), so the properties are compared as closely as possible.

Adjustments based on market and not cost
Some home remodeling projects will deliver a healthy return on the investment, but others do not.  A seller may have paid $30,000 to install a pool, but the current market is only willing to increase the price they’ll pay for that pool by $15,000.  Adjustments are based on what the market values the improvements, not the cost or opinion of the seller.

Appraisals are a snapshot.
As market conditions change, so will the appraised value of a home.  Appraisals capture the value at a specific point in time, but as we know, the housing market can change quickly.  Thus, the value of a home in the Fall of 2010 might be a lot different than the value of the same home in the Fall of 2009.  This is why appraisers are instructed to primarily look back only 3-6 months for data and appraisals are normally only good for four months.

The appraisal piece of the mortgage puzzle, is more complicated and controversial today than ever before.  That is why it is critical to work only with lenders that use an in-house appraisal desk and the very best in appraisers.  At Fairfield Mortgage, our appraisers always involve the realtors involved in the transaction before turning in a low appraisal.  They will always ask for more data because they want to turn in a value that works if at all possible.  Like everyone at Fairfield Mortgage, they are looking for ways to make deals work, not the opposite.  Experience the difference.  Experience Fairfield Mortgage!

Rate Update