Freddie Mac turns to YouTube to dispel common foreclosure myths

McLEAN, Va. – March 23, 2011 – Freddie Mac wants to help consumers separate foreclosure fact from fiction using a new video series launched today on its YouTube Channel.

Each 90- to 120-second video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. Freddie Mac based the content on its “Get the Facts on Homeownership” education and outreach materials.

 “The videos provide information and resources that just might keep individuals from losing their home,” says Dwight Robinson, Freddie Mac senior vice president of Corporate Relations and Housing Outreach.

The videos each cover one of the following “myths”:

Myth 1: If my house is foreclosed, I can never buy a house again – the foreclosure will stay on my record forever.
Truth 1: Foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan, and rebuilding your credit.

Myth 2: I should stop paying my mortgage so I can get assistance with my mortgage payments.
Truth 2: Stopping payment on your mortgage only hurts your situation and can expose you to foreclosure and credit difficulties that could require years to rebuild.

Myth 3: If I’m late on my monthly payments, I’ll lose my house.
Truth 3: If you have a financial hardship and fall behind, it’s possible to keep your house and get back on track if you contact your lender as soon as possible to discuss your options. You can also contact a HUD-approved housing counselor by calling the Homeowner’s HOPE Hotline at (888) 995-HOPE (4673).

Myth 4: I am getting many offers for help from a variety of people. They are probably all scams.
Truth 4: Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their home. It’s important to always open and respond to communications from your lender, particularly if you’ve already missed a mortgage payment. In addition, if you are in a financial crisis or facing foreclosure, make sure you work with your lender or a HUD-approved counseling agency to avoid common scams.

Myth 5: My lender is not responding to my inquiries, so I should just give up and face foreclosure.
Truth 5: Whatever you do, don’t walk away and don’t give up. It may take several attempts to reach your lender because their call volume can be very high.

© 2011 Florida Realtors®

Keeping you informed!

Gainesville-Florida-Realty

Zillow and Yahoo! Merge Real Estate Listings

SEATTLE – Feb. 4, 2011 – Zillow.com and Yahoo! Real Estate launched an exclusive partnership that brings together the two sites and, according to the companies, “creates the largest real estate network on the web.” The number of listings challenges Realtor.com, which is owned by The National Association of Realtors®.

If Zillow and Yahoo do pass Realtor.com, it will be close. For the week ending Jan. 29, 2011, Realtor.com had 6.05 percent of visits in the “Business and Finance – Real Estate” category tracked by Experian Hitwise. The combined total of Yahoo (2.18 percent) and Zillow (4.63 percent) would have been 6.81 percent. Zillow claims that it has almost 16 million unique monthly visitors.

Under the deal, Zillow will handle all real estate listings, and all ads sold will be posted on both websites. The companies say it also opens up Yahoo to local ads, a service formerly available only through Zillow.

The process leading to this final operating agreement, announced yesterday, first began in 2006 when Yahoo Real Estate incorporated Zillow’s Zestimate home valuations into its platform.

© 2011 Florida Realtors®

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Profile - 2010 Home Buyer & Seller

Florida Realtors Report: 2010 Profile of Home Buyers and Sellers ORLANDO, Fla. – Jan. 5, 2011 – The 2010 Profile of Home Buyers and Sellers in Florida looks at the traits of the state’s current real estate clients, and it identifies the characteristics of today’s homebuyers. It describes the motivations of recent homebuyers and sellers in Florida so real estate professionals can track the changing demands of consumers.

Characteristics of homebuyers

• Forty-four percent of recent homebuyers were first-time owners compared to 50 percent nationwide.
• The typical first-time buyer was 31 years old, while the typical repeat buyer was 54 years old; nationwide, first-time buyers were typically 30 and repeat buyers were 50 years old.
• The 2009 median household income of Florida buyers was $63,300 – slightly lower than the median income of buyers nationwide, $72,200.
• The median income was $53,500 among first-time buyers and $84,300 among repeat buyers.
• Nineteen percent of recent homebuyers were single females, and 11 percent were single males. Nationwide, twenty percent of recent buyers were single females, and 12 percent were single males.
• For 30 percent of recent homebuyers, the primary reason for the home purchase was a desire to own a home.

Characteristics of homes purchased

• New home purchases were at the lowest level in nine years nationwide – 15 percent of all recent home purchases. But in Florida, 18 percent of homes were new.
• The typical home purchased was 1,800 square feet, built in 1998, and it had three bedrooms and two full bathrooms.
• Seventy-eight percent of homebuyers purchased a detached single-family home.
• The median price of a home was $161,000 compared to $179,000 nationwide.
• When considering the purchase of a home, 73 percent of buyers considered commuting costs very or somewhat important.

The home search process

• For four in ten homebuyers, the first step in the home-buying process was looking online for properties.
• Eighty-nine percent of buyers used the Internet to search for homes.
• Real estate agents were viewed as a useful information source by 98 percent of the buyers who used an agent while searching for a home.
• The typical buyer searched for 12 weeks and viewed 15 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.

Home buying and real estate professionals

• Seventy-nine percent of buyers purchased their home through a real estate agent or broker.
• Seven percent of buyers purchased a home in foreclosure – slightly higher than the share of buyers nationally.
• Forty-four percent of buyers found their agent through a referral from a friend or family member.
• Seventy-two percent of buyers would definitely use their real estate again or recommend the same agent to others.

Financing the home purchase

• Eighty percent of homebuyers financed their home purchase compared to a much higher percentage, 91 percent, of buyers nationwide.
• The typical buyer financed 93 percent of their home purchase.
• Forty-six percent of buyers said they made some sacrifices, such as reducing spending on luxury items, entertainment or clothing.
• Twenty-eight percent of buyers reported their mortgage application and approval process was somewhat more difficult than expected, and 16 percent reported it was much more difficult than expected.

Home sellers and their selling experience

• A real estate agent assisted 86 percent of home sellers. Nationwide, 88 percent of sellers used a real estate agent when selling their home.
• Recent sellers typically sold their homes for 94 percent of the listing price, and 63 percent reported they reduced the asking price at least once. Among all sellers nationally, sellers typically sold their homes for 96 percent of the listing price, and 57 percent reduced the asking price at least once.
• Thirty-nine percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.

Home selling and real estate professionals

• Thirty-nine percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 23 percent used the agent they worked with previously to buy or sell a home.
• Eighty-eight percent of sellers reported that their home was listed or advertised on the Internet.
• Among recent sellers who used an agent, 81 percent reported they would definitely (61 percent) or probably (20 percent) use that real estate agent again or recommend the agent to others.

For-sale-by-owner (FSBO) sellers

• The share of home sellers who sold their home without the assistance of a real estate agent was 10 percent, or slightly higher than the national share of 9 percent.
• The primary reason that sellers chose to sell their home using a real estate agent was to avoid paying a commission or fee.

Keeping You Informed!  Gainesville-Florida-Realty

Article Provided by © 2011 Florida Realtors®

Jill Schmitt Is a Registered Selling Broker for HUD?

If you are interested in looking at HUD homes you have found the right place!

You need to do the following:

1.  Get Pre- Approved for Financing First!

2.  Search for a HUD Home to Purchase!

3.  Make a Bid online with a registered HUD Selling Broker!!! (Jill Schmitt)

To Search HUD Listings - Click Here!!

HUD Home Store is the listing site for HUD real estate owned (REO) single-family properties. This new site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale.

Seven year-end, Tax-Planning Ideas for Individuals

WASHINGTON – Dec. 9, 2010 – Despite confusion created by recent and probable year-end tax legislation changes, the 2010 federal income tax environment is still quite favorable, noted Robin Christian, senior tax analyst for the Tax & Accounting Business of Thomson Reuters. “However, we may not be able to say that after 2010; therefore, tax planning actions taken between now and year-end may be more important than ever. Be careful though – Congress could change the ball game before the end of the year.”

Following are seven planning ideas to consider while there is still time to act before the end of the year.

1. Accelerate itemized deductions into this year. If your Adjusted Gross Income (AGI) will be more than $170,000 ($85,000 if you are married and file separately) next year, you may want to accelerate into 2010 your state and local tax payments that are due early next year. You may also want to prepay in 2010 some charitable donations that you would normally make in 2011. Why? Because for 2010, the phase-out rule that previously reduced write-offs for the most popular itemized deduction items (including home mortgage interest, state and local taxes, and charitable donations) is gone, but is scheduled to come back in 2011, unless Congress takes action to prevent it, which looks increasingly unlikely.

If the phase-out rule comes back as expected, it will wipe out $3 of affected itemized deductions for every $100 of AGI above the applicable threshold. For 2011, the AGI threshold will probably be around $170,000, or about $85,000 for married individuals who file separate returns. Individuals with very high AGI may have up to 80 percent of their affected deductions wiped out.

2. Think twice before deferring income into 2011. This strategy makes sense if you are confident you will be in the same or lower tax bracket next year, but the tax picture for 2011 is blurry. With just weeks left in 2010, the fate of many tax provisions for 2011 and beyond is still unknown.

3. Time your investment gains and losses and consider being bold. As you evaluate investments held in your taxable brokerage firm accounts, consider the impact of selling appreciated securities this year instead of next year. The maximum federal income tax rate on long-term capital gains from 2010 sales is 15 percent. However, that low rate only applies to gains from securities that have been held for at least a year and a day. In 2011, the maximum rate on long-term capital gains is scheduled to increase to 20 percent. That will happen automatically unless Congress takes action, which currently seems unlikely.

To the extent you have capital losses from earlier this year or a capital loss carryover from pre-2010 years (most likely from the 2008 stock market meltdown), selling appreciated securities this year will be tax-free because the losses will shelter your gains. Using capital losses to shelter short-term capital gains is especially helpful because short-term gains will be taxed at your regular rate.

What if you have some poor performing securities (currently worth less than you paid for them) that you would like to dump? Biting the bullet and selling them this year would trigger capital losses that you can use to shelter capital gains, including high-taxed short-term gains, from other sales this year. If you think your investments that are currently underwater are poised for a comeback, you can buy them back after taking a loss as long as you do not reacquire them within 30 days.

If selling many poor performing securities would cause your capital losses for this year to exceed your capital gains, no problem. You will have a net capital loss for 2010. You can then use that net capital loss to shelter up to $3,000 of this year’s high-taxed ordinary income from salaries, bonuses, self- employment, etc. ($1,500 if you are married and file separately). Any excess net capital loss gets carried forward to next year.

Selling enough poor performing securities to create a big net capital loss that exceeds what you can use this year might turn out to be a good idea. You can carry forward the excess net capital loss to 2011 and beyond and use it to shelter both short-term gains and long-term gains recognized in those years, plus up to $3,000 of ordinary income each year-all of which may well be taxed at higher rates after 2010. This can also give you extra investing flexibility in future years because you will not necessarily have to hold appreciated securities for more than a year to get better tax results.

4. Maximize contributions to 401(k) plans. If you have a 401(k) plan at work, you can tell your company how much you want to set aside on a tax-free basis for next year. Contribute as much as you reasonably can, especially if your employer makes matching contributions. You turn down “free money” when you fail to participate to the maximum match.

5. Take advantage of flexible spending accounts (FSAs). If your company has heath or child care FSAs, before year-end you must specify how much of your 2011 salary to convert into tax-free plan contributions. You can then take tax-free withdrawals next year to reimburse yourself for out-of-pocket medical and dental expenses and qualifying child care costs (depending on the type of plan). Watch out, though, FSAs are “use-it-or-lose-it” accounts – you do not want to set aside more than what you will likely have in qualifying expenses for the year. And, starting in 2011, over-the-counter drugs (e.g., aspirin and antacids) will no longer qualify for reimbursement by health FSAs, so you may need to consider that when determining your 2011 contribution amount.

If you currently have an FSA, make sure you drain it by incurring eligible expenses before the deadline for this year. Otherwise, you will lose the remaining balance. For health FSAs, it is not difficult to drum up some items such as: new glasses or contacts, dental work you may have been putting off, or prescriptions that can be filled early. Also, for 2010, over-the-counter drugs still apply.

6. Adjust your federal income tax withholding. If it looks like you are going to owe income taxes for 2010, consider bumping up the federal income taxes withheld from your paychecks now through the end of the year. When you file your return, you will still have to pay any taxes due less the amount paid in. However, as long as your total tax payments (estimated payments plus withholdings) equal at least 90 percent of your 2010 liability or if smaller, 100 percent of your 2009 liability (110 percent if your 2009 adjusted gross income exceeded $150,000; $75,000 for married individuals who filed separate returns), penalties will be minimized, if not eliminated.

7. Make energy efficiency improvements to your home. A great way to cut energy costs and save up to $1,500 in federal income taxes this year is to make energy efficiency improvements to your principal residence. Basically, if you install energy efficient insulation, windows, doors, roofs, heat pumps, furnaces, central A/C units, hot water heaters or boilers, or advanced main air circulating fans to your home during 2010, you may be entitled to a tax credit of 30 percent of the purchase price. However, the maximum total credit you can claim for 2009 and 2010 combined is limited to $1,500. Without Congressional action, the credit will not be available after 2010.
Taxpayers should consult with a personal tax advisor before applying these or other tax strategies.
 
Copyright © 2010 The Associated Press.

Keeping you informed Gainesville-Florida-Realty!

NEW YORK – Nov. 19, 2010 – Rates on fixed mortgages jumped from their lowest levels in decades this week.

Mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans rose to 4.39 percent from 4.17 percent, the lowest level on records dating back to 1971. The 15-year loan also climbed to 3.76 percent from 3.57 percent, the lowest since that survey began in 1991.

Rates rose because Treasury yields climbed to their highest level since July. Mortgage rates tend to track those yields.

The yields rose mostly because traders dumped Treasurys they bought up before the Federal Reserve announced its $600 billion bond-buying program to spur the economy. Republican economists and lawmakers have criticized the Fed program, saying it could lead to runaway inflation. Those fears have led investors to sell their bonds.

Before last week, mortgage rates had been at or near historic lows since April as investors, worried about the economy, shifted money into the safety of U.S. Treasurys. Mortgage rates fell to their lowest point as traders snatched up Treasurys ahead of the central bank’s announcement.

The recent jump in rates rippled through the mortgage market. The number of people filling out mortgage applications slumped last week, the Mortgage Bankers Association said Wednesday. Purchase applications dropped by 5 percent from the previous week, while refinance applications tumbled 16.5 percent.

While refinancing activity got a boost, low rates did little to buoy the struggling housing market. Potential buyers are worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can’t sell their own homes before buying another.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

Rates on five-year adjustable-rate mortgages averaged 3.40 percent, up from 3.25 percent, the lowest rate on records dating back to January 2005.

Rates on one-year adjustable-rate home loans were unchanged at 3.26 percent.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.

The average fee for 30-year mortgage in Freddie Mac’s survey was 0.9 point. It was 0.7 point for 15-year fixed loans and five-year mortgages. It was 0.6 point for 1-year mortgages.

Copyright © 2010 The Associated Press, Janna Herron (AP real estate writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed

Brought to you by Gainesville-Florida-Realty

The Health Care Bill recently signed into law by President Obama had a little known provision that levies a 3.8% Medicare tax on the proceeds from the sale of your home. Now the question is "Does this affect the proceeds from the sale of my home?" The answer is maybe yes, maybe no but yet possibly. Sounds like an answer from a government worker. But this is true. There are many details in the Health Care Bill that have yet to surface for interpretation. More will be discovered as time gets closer to full implementation. More digging has to be done to uncover if your house will be subject to this tax.

How to Know if You're Hit by the Taxman

It isn't until 2013 that the new Medicare Tax starts for home sales. You have a while not to even care. And when it does take effect it will not apply to certain homes that are sold. To be eligible for this tax you have to have in excess of $250,000 of adjusted gross income if married filing joint or $200,000 filing as individual. That gets a lot of taxpayers out of the category immediately. Presently, the capital gains exclusion is still in existence for gains on home sales. $500,000 of gain is exempt for married filing joint and $250,000 of gain is exempt for individuals. Next, if you are still eligible there still may be a reduction for you because the 3.8% Medicare Tax applies to your "net investment income". This is easy right? The good news is that many people will be excluded from this new tax based on income and excess home gain on the sale.

Explain A Little More Please

First, a review of the sale of main residence rules:

• You must have owned and lived in the home for at least 2 of the prior 5 years and it must be your main residence.
• When you sell your home and you have a gain you can exclude the amounts as shown in the preceding paragraph. The important term is gain on the home sale and not the proceeds. Gain is the difference between the sale proceeds with allowed adjustments less the adjusted basis of the home you sold. In order to compute the basis of the home you sold you should refer to IRS Publication 523. However, if you still have a taxable gain after you calculate the adjusted home sale proceeds minus the adjusted basis of the home minus the allowable exclusion, first congratulations, then this remaining gain could be subject to the new 3.8% Medicare tax.
• Yet this new tax applies to the gain on the residence that in included in the "net investment income".

Thus One More Explanation Is Necessary

Could this gain on the residence be reduced further? Well again yes or no but possibly. But to save our sanity and for this discussion, let's just look at what is "net investment income" and leave it there for now. The real worry can kick start in 2013.

"Net investment income" as reported on IRS Form 4952 shows that your gross income from property held for investment can be reduced by investment expenses and the result is net investment income. The point is that the home gain that is lumped in with other gain on investments might be adjusted for certain expenses and the difference or net will then be subject to the new 3.8% Medicare tax. Just be aware that there is a new tax on the gain on certain home sales possibly looking for you!

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For all your Real Estate Needs!!

The Latest Comparative Sales Data

for Real Estate Sold in

Gainesville and  Alachua County, Florida

For the Period July 1^st through September 30^th

Years 2010 and 2009

                                                                                  2010                        2009

Sales Price Volume                                  $85,371,237          $114,043,786

List Price Volume                                     $90,961,605          $120,465,859

Average Sale Price                                    $188,042               $189,757

Average List Price                                     $200,356               $200,442

List/Sell Ratio                                               94%                     95%

Median List Price                                       $165,000               $169,900

Median Sale Price                                      $159,900               $165,000

Average Days on Market                                 164                      159

Type of Financing:                                              2010                    2009

Conventional                                                     178                      258

Cash                                                                    141                      119

FHA                                                                     100                      190

VA                                                                        22                        24

Other                                                                  13                        10

Jill’s Analysis of Activity Report for July 1 through September 30, 2010

The level of overall sales activity is down approximately 25% from 2009 to 2010. The good news is that a trend of stabilization appeared. The Average Days on the Market, the Average List and Average Sale Price are extremely close for a year over year comparative. The other good news is that the List/Sell Ratio was 95% in 2009 and only fell 1% to 94% in 2010. The List/Sell Ratio compares the price asked for the property to the final price the property was actually sold for. The only noticeable decrease was in the comparison of the Median List Price to Median Sale Price. The Median Price is where the larger majority of homes being sold are priced.

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County named a top community for kids

( page all of 4 )

Those snapshots of life for Alachua County children are why Gen. Colin Powell and his wife Alma's organization, America's Promise Alliance, named the county one of the "100 Best Communities for Young People" in the nation.

"The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," Alma Powell, chair of the Alliance, said Tuesday. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career."

Brent Christensen and Eric Godet from the Gainesville Area Chamber of Commerce along with Alachua County Children's Alliance member Beck O'Brien accepted the award in Washington, D.C., on Tuesday at a ceremony in front of the Washington Monument. A local celebration is scheduled for Nov. 7 to recognize the agencies that contributed to the recognition. County officials will receive two road signs designating the area as one of the 100 best as well as a trophy.

The award comes as the Alachua County Children's Alliance continues to work toward increasing after-school help for those in need, reducing dropout rates and increasing graduation rates, along with reducing the number of children in foster care. The alliance is a nonpartisan group that meets monthly to promote better outcomes for children.

"It's really congratulations to the community and the community alliance," said Esther Tibbs, Department of Children and Families circuit administrator and county alliance board member. "While we have work ahead of us, this marks a milestone as public and private agencies have found new ways to cooperate and collaborate to better meet the needs of Alachua County's children."

Alachua County — like most counties in Florida — struggles with Florida Comprehensive Assessment Test scores, along with poverty and drop-out rates.

The Gainesville Sun reviewed statistics provided by the Florida Department of Education and found Alachua County graduation rates and FCAT reading scores improving, along with a decline in the dropout rate. But the numbers also highlight the work that lies ahead:

Nearly 23 percent of high school students didn't graduate last year.

55 percent of 10th-graders did not pass the FCAT reading test this year.

Nearly 50 percent of students receive a free or reduced-price lunch.

"It's only a beginning," Tibbs said about the work and the award.

One bright spot is that Alachua County's SAT scores are the highest in the state. High school students nationwide take the test, which can determine college scholarships and placement at universities.

Part of the reason Alachua County won the 100 Best award, organizers say, is not because it's at the top of the heap in test scores or athletics but because residents are working to make a difference in children's lives each day, especially those in need.

"These winning communities refuse to let the challenges they face be the determining factor in the lives of their children and youth," Alma Powell said. "Instead, they are helping to build an infrastructure of assertive, successful and dynamic young people that are the future of this country."

Alachua County agencies have revved up or started new programs in the past few years, including:

Success By 6, a United Way program to encourage children to be ready for school. The organization has spent $1.8 million on programs dedicated to improving school readiness.

Boys and Girls Clubs, a stalwart of after-school activities for decades.

Snuggle-Up Centers, a program in which volunteers read to children at Alachua County Public Libraries.

Welcome Baby Kits, which sends volunteers into homes with books to encourage families to read.

In addition, community leaders in 2008 successfully campaigned to get a one-cent sales tax passed to pay for arts programs in the schools at a time when budget cuts were killing similar programs throughout the state.

The Alachua County School District last year received a 21st Century Learning Community Grant, a federally funded program that provides after-school help for elementary and middle school students. The first-year grant was for $700,000. It is allowing the district to provide after-school and summer help for every middle school student in the district — more than 10,000 sixth-, seventh- and eighth-graders.

"And absolutely everything is free ... not a nickel out of parents' pockets," Melissa Montgomery, the program's coordinator, said when it was announced last fall. "Students do not have to financially qualify. As long as a student is enrolled at a school in Alachua County, they can attend one of these sites."

In addition to tutoring, the program provides extracurricular activities such as dance, photography, martial arts, mad scientist, art, furniture design and technology-based activities. It is designed to improve academic performance along with the behavior of adolescents and preteens.

One student who says after-school programs made her life better is Jaterra Bonds, a freshman basketball player at the University of Florida. She participated in the city of Gainesville's recreation programs at the Northeast Community Center.

"I learned patience, social interaction, how to take criticism, discipline and many other valuable lessons," said Bonds, a graduate of P.K. Yonge Developmental Research School at UF. "I have changed as a person, because now I'm more mature and know how to handle the different situations of life."

Contact Kimberly C. Moore at kimberly.moore@nytrng.com.

Keeping you informed www.Gainesville-Florida-Realty.com