 |
|
 |
| Reflections on a Crazy Housing Year and A Look to 2010 |
|
2009 bought us a new presidential administration,
new economic stimulus packages, and homebuyer
tax breaks.
It seems that everyone, from the top levels of
government down to the local business owner, is
trying everything possible to goose the American
economy. How is it going? And, where will 2010 lead
us?
The homebuyer tax credit seemed to do its
job in encouraging some people to get into the real
estate market. Though some experts say that less
than 10% of first-time homebuyers were triggered by
the credit, it certainly helped if you were one of those
people!
Enter President Obama's loan modification
plan, which aimed to help stem the flood of real
estate foreclosures. A lot of people are still wondering
where all the money went from Obama's loan
modification plan, which has been rather
complicated.
Below is a paragraph from U.S. News and World
Report:
"At the heart of the President Barrack Obama's
ambitious plan to rescue the housing market is the
conviction that restructuring distressed mortgages
will keep struggling borrowers in their homes and
help insert a floor beneath plummeting property
values. With $75 billion dedicated to reworking
troubled loans, that's a big bet-especially
considering that a top banking regulator said last
December that almost 53 percent of loans modified in
the first quarter of 2008 went bad again within six
months. But supporters argue that mortgage
modifications need to be properly engineered to
work-and many early ones weren't. To that end, the
Obama administration unveiled fresh details on its
plan to restructure at-risk loans and help as many as
four million home owners avoid foreclosure."
The current loan modification plan calls for banks to
rework the mortgage payments of people who are at
risk of defaulting on their loans. Some people have
high interest rates and are unable to refinance
because their homes are "under water," meaning that
they owe more than the home is worth. Others simply
lost income and are having a hard time making
payments. Talk to your lender to see if you qualify for a
loan modification.
Whatever the answer is, let's hope someone figures it
out soon. Foreclosure is bad for everyone. It's
obviously bad for the people losing their homes, but
it's also bad for people left in the neighborhoods, as
the houses can sit vacant and blight, and real estate
values may plummet. They're bad for the banks,
too.
Looking to 2010
So Obama's Housing stimulus, rescue plans,
bailouts and tax credits aren't helping enough people
and aren't working fast enough. Looking forward to
2010, we are all hoping for brighter days. I'd love to be
able to tell you we are through the crisis, but I'm not
sure that is true. While some experts believe we are,
others are unclear. What is the average homeowner
or homebuyer to do?
Like I always tell clients, don't worry too much about
the big picture. Base your financial decisions on your
individual situation. The tax credit has been extended,
so you can still enjoy a fantastic $8,000
tax credit if you buy a new home.
In other 2010 financial news, lots of money experts
are advising people to convert their traditional IRAs to
Roth IRAs.
One of our accountant friends, Fran LoPresti of
Weiner & Rice, explains, "Beginning in 2010, the IRS
has relaxed rules allowing taxpayers with certain
types of retirement accounts to convert those
accounts into much more favorable ROTH IRA
accounts. The benefit of a ROTH IRA is that the
invested funds continue to accumulate tax free and at
point of withdrawal, those funds are also not taxable. I
repeat, NO TAX. There have always been limits to
conversion rules, based on income, and beginning in
2010 those rules have been favorably changed to
assist taxpayers and make conversions to ROTH IRA
accounts much more attractive."
As I always advise people making mortgage-related
decisions, Fran says that the best thing to do is to talk
with your tax advisor to see if converting funds to a
ROTH IRA makes sense for you.
One of the most important things you can do in any
real estate market is to keep your financial house in
order. Have a plan, and make sure it includes a
monthly budget and a rainy day fund. Be conservative!
You never know how long or how hard it will rain.
Preparation is key.
|
| December's Home Value Improver |
|
Enjoy Holiday Scents without the
Work
Chestnuts roasting on an open fire - one of my
favorite holiday songs, and also one of my favorite
scents. This and other holiday scents make us think
of warm things like home, family, and freshly cooked
food. Of course, not everyone has time for a day-long
cookie-baking extravaganza to fill the house with
delicious scents. Even if you did, you probably want
the smell to last longer than that day. So here are
some tips to making your home smell as wonderful
as the holidays can make you feel.
Apple spice.
There are as many mulled
apple cider recipes on the Internet as there are
holiday traditions. I think the most simple is to put
some apple cider in the crock pot with some
cinnamon and cloves, and leave it on low all day.
Peppermint.
There a lot of things you can do with peppermint, and
they are all great! Peppermint brownies, candy cane
fudge, and cake icing. It's a soothing and therapeutic
scent, and you can fudge the smell in your house by
brewing up some peppermint coffee. Sure, coffee
may not be a holiday scent, but who doesn't love that
smell?
Gingerbread.
Sure, you could spend the afternoon baking
gingerbread from scratch for a gorgeous gingerbread
house. The place would smell divine! If you don't have
the time or energy for that, whip up a quick batch of
gingerbread from a mix in the store.
Pine.
Perhaps the greatest scent of the holidays is the
smell of a freshly cut Christmas tree. If you don't put
up a Christmas tree, you can always get some dried
balsam and fill a muslin bag with it. If all else fails,
break out the pine-scented cleaners. You can enjoy
the pine smell, and a clean house.
Orange and clove.
Try studding an orange with whole cloves. You'll get
an absolutely dreamy smell, and a cool looking
holiday decoration.
|
|
 |
|
What a year! Lots of ups and downs in my industry,
that's for sure! One thing has stayed the same,
however, and that is my commitment to making sure
that my clients receive the information they need to
make the best housing and mortgage decisions.
With more changes than ever in tax breaks, loan
changes and the economy, it's easy to get caught up
in the media hype and make rash decisions. Staying
calm and focused on your individual situation is
always the best approach.
I hope you're also able to enjoy some calm, relaxing
time with your loved ones this month. Enjoy the
holidays and I'll see you in 2010!
Best regards,
Debbie Siegel
President
Westchester Mortgage
P.S. You're receiving this E-Newsletter because you have a prior relationship with me or with Westchester Mortgage. If I've sent this to you in error, or if you want to remove yourself from the list at any time, just click the "SafeUnsubscribe" link at the bottom of this e-mail.
|
|
|
|
|
|
|
Click here for some tips on
how to choose a mortgage broker!
|
|
|
