Price Reduction - 158 Lin Tilley

We've just reduced the price on 158 Lin Tilley in Northern Durham. This almost 2400 square foot home is now going for $224,900. New paint and carpet, renovated kitchen, huge screened deck, and a two car garage are just a few of the features. See all of the pictures and more information at http://www.158lintilley.com/.

Durham Event Calendar

This week's events cover a wide spectrum. Musicians of all ages are taking to the stage, with concerts from the Durham Public Schools Honors Band and the Duke Symphony Orchestra. Several exhibits continue to run at the Nasher Museum of Art at Duke University.

If you haven't been to Parker & Otis in the Brightleaf district, now is a good time to visit. Check out Wine After Work on Thursday evenings for $2.50 glasses of wine and $1.75 bottled beer. Or, hang out with Friday night staple the Duke Street Dogs and get a full slate of music styles, including blues, country, fiddle tunes, waltzes, and jazz standards.

This week's events

Downtown events

M/I Homes Beats Lennar's Deal

A couple of weeks ago, I posted about a great deal being offered by new home builder Lennar. Apparently, M/I Homes has decided to go one better. Lennar offered a 30 year fixed rate mortgage at 4.875% - M/I is offering 3.875% for the first year, which adjusts to 4.875% in years 2-30. Looks like the deals keep getting better and better.
Check out their TV ad and see which markets qualify for the offer at the M/I website.

Federal tax changes of note

There are several changes and additions to the tax code for 2007 filings. As we know, the Senate passed an economic stimulus package last week. The high point of the deal is a special, one time payment to American taxpayers. Individuals making less than $75,000 per year and couples making less than $150,000 per year should receive from $600-$1200 from the government.

According to an article from the Wall Street Journal Online, several other major changes should bring relief to taxpayers and homeowners. The biggest in my book is mortgage debt relief for homeowners who lose their homes to foreclosure. Say that at the time of foreclosure, you owed $100,000 on your home. The bank that held your mortgage didn't sue you for the outstanding mortgage amount, and wrote if off instead. According to the IRS, that forgiven debt is tantamount to taxable income. So in addition to the traumatic experience of losing your home, you then have the even more traumatic experience of having the IRS tell you the loss of your home was actually a WINDFALL for you (yipee!), and that you should pay taxes on it. Brutal.

Thankfully, the IRS has realized the error of its ways - you no longer have to include the mortgage debt as taxable income if it is less than $2 million.

Also on the slate: a temporary reprieve for those exposed to the Alternative Minimum Tax, tougher rules for charitable donations, and an increase in the standard deduction.

See a breakdown of the biggest changes.

Calling All Bull Durham/Durham Bulls Fans!

The Historic Durham Athletic Park is undergoing renovation, and the City of Durham, NC wants your help to ensure that the rehabilitation is accurate in detail. You can help bring back this piece of Americana - the DAP, as it is affectionately known, served as home field for the Durham Bulls for many years. It became known around the world when Durham and the DAP provided the setting for the movie Bull Durham.

The city is calling "all residents and former residents and Bulls fans everywhere" to send in images and photos of the DAP, going back to its construction in the 1930's.

Here are the instructions and guidelines for submission:

If possible, images need to include the date taken. Submissions should also include complete contact information (name, mailing address and phone number) so they can be returned by May 15, 2008. They can also be scanned and submitted via email, DAPphotos@durhamnc.gov. By U.S. mail, send them to:
Durham Athletic Park (DAP) Photos
c/o Beth Emerson City of Durham General Services Dept. 101 City Hall Plaza Durham, N.C. 27701
E-mail: DAPphotos@durhamnc.gov
For additional information regarding the DAP renovation project, contact Emerson at (919) 560-4197, extension 277, via e-mail at beth.emerson@durhamnc.gov, or visit the City’s Web site at www.durhamnc.gov/departments/eed/dap.

Durham Event Calendar

Durham: A Self Portrait is back for a return engagement at the 14th Annual Black Diaspora Film Festival. This film sold out when it ran at The Carolina Theatre last November; it is now making the rounds of several venues across the city.

Also playing thie week: Arlo Guthrie at The Carolina Theatre and special Valentine's Day dinners across the city.

See the Event Calendar

See the Downtown Events Calendar

Project Lifeline

The catchy monikers keep on coming - let's hope some real help will follow. Today, the federal government announced Project Lifeline, a new program by the same lenders that brought us HOPE NOW. Project Lifeline aims to serve a broader spectrum of delienquent borrowers. Homeowners who are at least 90 days overdue on their mortgage payments may have the opportunity to put their mortgage payment on hold for 30 days while they try to work out a solution with the lender.
So far, the lenders are mentioning temporary rate freezes and payment arrangements to help borrowers catch up on the overdue mortgage payments. I'm not sold on the fact that either will do more than forestall some inevitable foreclosures. (Let's see...my mortgage payment doubled this month...but the lender agreed to freeze the rate...all I have to do now is find a job that pays twice as much and I'm back on easy street!) OK, enough of the non-constructive sarcasm, back to the story...
The participating lenders are Bank of America, Citigroup, Countrywide, JP Morgan Chase, Washington Mutual, and Wells Fargo. They will be sending out letters to qualifying homeowners. Homeowners may also call the HOPE NOW hotline at 1-888-995-HOPE.
In related news, a Clayton, NC family was featured in "The Kitchen Table", an ABC News series. This definitely brings the national mortgage story home to the Triangle. The couple in the story, Susan and Michael Walker, bought their home for $172,000, which is around the average price of a home in Durham, and cheaper than most in Raleigh. A no money down, adjustable rate mortgage has proven to be more than they can handle.
See the video: http://abcnews.go.com/Video/playerIndex?id=4211122&affil=wtvd

New Views of 535 Continental

The builder has just installed really high end door pulls in the kitchen. These are very nice and very unique - smooth finished handles made of a combination of brushed chrome and brass. Beautiful, and coodinates well with almost any light fixture or other hardware.

We also have samples of the countertop granite. The buyer of this home can choose from any of these granite colors at no additional charge.

See more photos and information at www.535ContinentalDrive.com.

Zilpy - The Zillow of Rental Properties

Looks like there's a new entrant in the online property valuation game. Zilpy has echoes of Zillow (map mashups, super simple Beta interface) but is geared toward analyzing the rental market in a given area. Investors, landlords, and renters can all benefit from the site. It shows median and Section 8 rental rates, broken down by square footage and number of bedrooms. It has an "Area At-A-Glance" section and a section highlighting major areas of town and neighborhoods. My favorite part is the "Heatmap" - a map mashup that overlays a city map with color coded "zones" showing how hot (read: expensive) the market is in different parts of a city.

The Durham, NC Heatmap

I'm not sure if Zilpy will suffer the same issues as Zillow, ie, wildly inaccurate property valuations. But on the surface, it looks like a promising resource for researching rental property.

Lennar Offers a Deal

National homebuilder Lennar is offering a deal: a 30 year fixed rate mortgage at 4.875% if you purchase one of their homes using their preferred lender. Plus, they are paying up to 6% towards closing costs. An interest rate this low is worth a serious look, as it will boost buying power significantly.
There is, of course voluminous fine print attached to the deal - read carefully and review with your real estate agent. Another note of warning: Lennar is on the Ailing/Watch list over at Builder-Implode.com. DO YOUR RESEARCH on any Lennar neighborhood you are considering. I've read some horror stories about people contracting for new homes, and the builder going out of business mid-construction, leaving unfinished homes and neighborhoods with half-built streets, pools, and clubhouses.

Durham Kress Open House Feb. 15

From the ABCD listserv: The Durham Kress is hosting an open house to showcase the three remaining units in the building. The open house is on February 15 from 4pm-7pm. Artwork by local artists Jonathan Schneider and Darius Quarles will be on display. There will also be a second open house on Sunday, February 17, from 2pm-4pm.
The Kress is located in downtown Durham at the corner of Mangum and Main Streets (103 W. Main)
Get the scoop on available units here.
Map to the open house: http://www.google.com/maps?q=103+w+main+street+durham+nc+27701&hl=en&ie=UTF8&ll=35.995016,-78.900695&spn=0.007517,0.012381&z=16&iwloc=addr&om=0

View From the Front Lines

I haven't posted in a while on the nationwide mortgage situation. Truthfully, new information has been flying so fast and furiously that I've been trying to incorporate it all and distill it into something meaningful. We are in a situation that continues to evolve and change - analysis from more informed pundits than myself has been tried (and has failed). So here's my report from the front lines - certainly no answers, just what I see as a real estate agent.

• HOPE NOW is not so hopeful. President Bush originally touted this program as having the ability to help 1.2 million homeowners. At this point 99% of the articles and information I've found say that this is not going to happen. Why? This is a voluntary program and there is no oversight of the involved lenders to hold them to specific benchmarks. Plus, many buyers might rather just walk away from their home - why pay even a fixed interest rate on a home that is losing value by the day? The program got off to a rocky start when the President announced it on national television by giving out THE WRONG PHONE NUMBER.


• The Fed rate cut and the stimulus package won't stimulate housing. It will certainly have a soothing psychological effect, and having an extra few hundred dollars in the till will help a lot of people sleep better for a month or two. But I noticed that when those Fed rate cuts happen, I get an email from my online savings account company. My interest rate has fallen from 5.05% to 3.8% in lock step with the rate cuts. Which makes me want to pay down debt and hunker down in my nice affordable home until this blows over. It certainly doesn't make me want to run out and buy a new house. Or car. Or dress. Mortgage interest rates are down right now - unfortunately, there are lots of other factors in the market affecting people's willingness to buy. It's a shame, really. Nothing boosts your buying power like low interest rates. One caveat to this - our firm is working with lots of buyers. I know other real estate agents that are working with lots of buyers. But I definitely see more buyers that are on the fence or deciding that now isn't the time to buy.


• http://www.youwalkaway.com/. That's right, for around $1100, this company will show you how to abandon your home with a minimum of discomfort. This points up a bigger reality about the housing market in this country. Historically, home was a place to raise your family, create memories, and retire in comfort. Then some retirees realized selling their home could make them instant millionaires. Then a bunch of 20-, 30-, and 40-somethings decided they didn't want to wait for retirement to get their millions, they wanted them right now. And everybody forgot that it was actually possible to own a home for 30 years and be proud of paying it off. Home became a piggybank classified under the false headline "investment". Dangerous because it was an investment where people still laid their heads and raised their families, in short, an EMOTIONAL INVESTMENT. Ask your financial advisor or stock broker what they think of emotional investments (protect your eardrums first).


• We will come through this, and it will be a good thing. I hear from agents all over the country that their markets are still strong. Ditto for the Triangle. There has been a huge run up in property values in many major markets. It stands to reason that the downturn will be as severe as the upside. What goes up must come down - it's no different in this case. But once this is finished, best case scenario is that we may end up with more responsible loan products, more constrained inventory, more affordable housing, and a real estate industry populated by real estate agents and lenders that are true professionals dedicated to serving buyers and sellers instead of seeking a quick buck.

That's my story, and I'm sticking to it - at least, until the next swarm of articles and blog posts comes across my laptop.

Red Flags

This is re-posted with permission from fellow blogger Jeff Belonger of TheFHAExpert.com:


How many of you at one time or another bought a house or refinanced your mortgage and ran into one problem or another? May it have been the realtor who was not able to give you the correct answer or the loan officer who strung you along and then changed things last minute? I have never said that I am perfect or that I know it all, but it does come down to honesty, integrity, knowledge, and very good service.

What about you first time homebuyers that have never experienced buying a home or refinancing for the first time? I truly believe that there are some key phrases that can sometimes be cause for concerns, known as Red Flags. And just because you have done this before, doesn't mean that it won't happen to you. If you hear some of what is mentioned below more than once, especially in a short time period, this could be your warning.


The General / Basic Red Flags from both the loan officer or the realtor :

• As you shopped for a realtor or a loan officer, this person was always getting back to you. Now you have signed a listing agreement, a buyers agreement, or the loan application and they don't get back to you right away. If you are leaving a few messages per day, both e-mail or by cell, and this continues for close to 48 hours, there is no excuse. This is a huge Red Flag if this takes place a few days prior to settlement / closing, especially the day of closing, if they can't be reached at all.
• Key words or phrases used often when first speaking to you ; "I promise", "I guarantee", "no problem, I'll fix it", "I am the best", "I am the cheapest", and "I have the lowest fees". I am sure there are more.
• Delayed phone calls. I promise to call later or tomorrow. But you don't hear back from them and now you have to track them down. Yes, again, things happen. But if this seems to be a reoccurring issue, then you might have problems.
• Deadlines - If there are certain dates on the contract or with the lender, get everything in as soon as possible. If that is ordering inspections in a timely manner or getting documents to the lender, don't wait.

Red Flags from loan officers or lenders :

• You are shopping for lenders and the loan officer never offers you a Good Faith Estimate. Rut row.
  They don't offer you the rate or the payment? This might sound silly, but I had 3 clients just in one month, that this happened to them. Yes, can I judge and say that they should have asked? But maybe the loan officer talked circles around that client, and then they just forgot. Sometimes just hearing, "you are qualified" or "you are approved", gets you excited, hence why you might forget to ask the important questions.
• You find a loan officer because their rates were very good. But since you have so much on your mind, they never go over the rate lock-in features of that program. If they don't cover this prior to application, and especially during application, this could be trouble. Or they get you to sign a rate lock form, but they convince you to float. Question, did that rate even ever exist then?
• You might qualify for a FHA or VA loan, but tell you that you don't want those kinds of loans, because conventional is better for you. This has happened to at least 5 people that I know of. The main reason was because the lender wasn't FHA or VA approved.
• If your lender/loan officer changes rates or fees during the process or at settlement, don't just give in. Avoid excuses such as; "your credit score dropped", "you have less income", "your credit isn't as good", etc, etc. What I am about to say is the average. These things are usually found out in the first week when processing a loan, not last minute.
• Changing stories / shifting blame. This one can be used in conjunction with the other red flags mentioned above.
• When comparing good faith estimates, don't just compare the bottom line, "total costs to borrower". Some loan officers low ball certain 3rd party fees to make their good faith look cheaper. Or they escrow less taxes on paper that is mandatory in each state.
• You are at closing and the loan officer says, "don't worry about those docs, we can correct that later". NO !!! Once you sign, it's over.

Red Flags from realtors or real estate offices :

• When an agent only shows their listings. If you want to see homes and they keep showing those only listed by their company or that they are selling themselves.
• One complaint - When a realtor has a full time job that is not real estate related. I heard a story that the buyers had to wait until their realtor got up to show them the house. This was at 1 pm.

Red Flags from consumers :

• This is actually to the consumer reading this. Never hesitate to tell your loan officer or realtor everything. Even if they don't ask you and you think it's pertinent to the transaction. Don't take that chance in not telling them. We are all here to help you and not pass judgment. The true professional acts in this manner.
• Be loyal and just don't hop to every realtor showing houses. Build a rapport with that person. That's if you feel comfortable with that person.
  
  
  
  Overall, don't keep falling for the same excuses over and over. Or, for multiple excuses during the process. Yes, things happen, but 9 out of 10 times, not that many on one transaction. These types of excuses are usually to delay you in finding out the truth, until it's too late. If anything above happens for 2 or more days in a row, don't wait, contact their manager or boss. If you don't feel like you are getting anywhere at anytime, seek a professional in the particular field or possibly seek legal advice. It's one thing to give someone the benefit of the doubt, it's another to be lied to or misled intentionally. Never hesitate to ask questions.