The Bains

Building & modifying homes to accommodate multiple generations is
increasingly popular as more Americans struggle to take care of both
older parents & their grown children under the same roof. The National
Assoc. of Home Builders’ International Builders Show this year featured a one level residence with a master suite at each end. The grandparents’ suite included universal design elements + a small
kitchenette. Both generations could help each other with chores &
meals. A growing number of ethnic groups will probably continue this
even when the economy gets better.

185.5 million members are the folks in the U. S. that use Credit Unions
for their banking, mortgages & other services. Credit Unions are strictly
NOT-FOR- PROFIT financial insitutions , unlike banks, who’s sole purpose it to make a profit. Credit Unions help members save more, earn more & do more. Tyler & vicinity have about 14 different Credit
Unions, several with multiple locations. Just look in the yellow pages of
the phone book for a list. EXPERIENCE THE CREDIT UNION DIFFERENCE.

There are signs the economy is turning around. Most important positive indicator is the corporate profits have rebounded, according to
Dr. Mark Dotzur, chief economist Real Estate Center. In a free-market,
capitalistic system like America, profit growth is a key indicator. Companies are NOT hiring as uncertainity of capital gains & income tax
rates, cost of health care & possible increase in energy costs due to
“cap & trade”. Companies cannot project the future. Cash in businesses is $3 trillion – more than capital in Federal Reserve, FDIC,
Fannie Mae & Freddie Mac combined. To “insure” against uncertainity is
to HOARD CASH.

Freddie Mac reports that its Primary Mortgage Rate for a 30 year fixed
rate averaged 4.58% with an overage 0.7 point for week just ending.
A year ago it was 5.32%. The 15 year is 4.04%. It has been years since interest rates were this low. The 5 year Treasury-indexed hybrid
adjustable-rate mortgage is 3.79%. Frank Nothaft, Freddic Mac VP &
chief economist says this is due to the economy struggling to gain
momentum & inflationl remains very low. Annual inflation meansured at
0.9% for April and May, slowest pace in 44 years. The homebuyer tax
credit did spur home sales, but that is about over.

through September 30, 2010. NFIP is the National Flood Insurance Program & Realtors in Galveston, etc. could not close homes as buyers
could not get homeowners insurance + they would loose their tax credit.
Congress extended both & the bill is retroactive & will cover the lapsed period from June 1, 2010 to the September 30 date. 83,000 Realtors
nationwide sending 250,000 letters to Congress to extend the flood insurance & some the tax credit. These 2 issued are dove-tailed together.

The oil spill & the statewide budgets cuts are making it difficult to project
what will happen to the TX economy in coming months. The effects of the oil spill are concentrated in south east part of TX, but uncertainity
about whether OFFSHORE DRILLING WILL BE STOPPED. TX markets rely
on oil field service & the offshore service industries. With revenues DOWN, spending has to be cut. This could result in short-term layoffs -
if not permanent layoffs – of personnel. This prediction from Dr. Jim Gaines at the TX Real Estate Center.

The Home Valuation Code of Conduct – to insure appraiser independence is a year old now. Realtors can go to a listing & be
sure the appraiser is doing a thorough job. The Realtors MLS information needs to be detailed to help the appraisers. Sometimes a
a low appraisal is justified, but be sure comps used are justisfied.
Take legitimate concerns about appraisals to the lender particularly if
there is a pattern of excessive delays or bad appraisals. Most competent lenders have lists of local lenders for the managment company.

in the Dallas area & 1.5 in Fort Worth, with 3.1% nationwide. Yes, there have been recent price increases, BUT no more first-time homebuyer tax credits, the Federal Reserve has stopped buying
residential mortgage-backed securities & the extremely high number
of projected foreclosures, so that causes prices to float down. These
projections are from Case-Shuller and Fiserv researchers’ & their new
projections. Probably will be this way for the rest of the year.

A loan modification is a permanent change in one or more of the terms
of your loan. Brings you a fresh start and resulting in a payment that
you can afford. The sole purpose of a loan modification is to enable the borrower to meet the terms of the new loan for the foreseeable
future. Does require diligence with the paperwork with your lender &
about 27% have not proceeded & more seems to be dropping out. You
must be prepared to make 3 payments on time during the procedure.

The number of borrowers failing to meet the requirements of the Obama
administration’s mortgage modification program is rising, almost equaling
the number of homeowners who have received permanent relief. About
25% of the 1.2 million borrowers who started the program have received loan modification. 23% of those enrolled, dropped during the
trial phase, which requires borrowers to make at least 3 mortgage
payments on time. Staying up with the paperwork & procedure seem
to be the downfall.