NAR put this out a while back, but does it still makes sense today ? Tax write off:  According to the U.S. Tax Code you can deduct the interest you pay on your mortgage, property taxes, and some of the costs involved in buying your home. Home value: While the median price of single family homes nationally has gone down -1.8% between 2004 and 2007 the Mobile Real Estate has thrived by increasing in value by 6.4%. Even with a 6.4% percent increase in value the Mobile market is still considered a buyer's market thanks to the ongoing tremendous growth. Stats offered by the NATIONAL ASSOCIATION OF REALTORS.  Equity: When owning a house it is possible to gain equity value in many different ways. Supply and demand, new commercial development (accessibility), new schools in the area, new highwa... 09/16/2008

This should make the market go much higher until they realize that the problem isn't solved! From CNBC: American International Group will get an $85 billion bridge loan from the federal government in exchange for an 80 percent stake in itself, sources have told CNBC. Sources said the loan, which will allow AIG to avoid bankruptcy, will be secured and include incentives for quick asset-sales by AIG.Government warrants for most of AIG's equity will severely dilute existing shareholders. Read the entire article here: http://www.cnbc.com/id/26743248     09/16/2008

The Fed held rates steady at 2% despite pressure from the financial markets... For immediate release The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth. Inflation has been high, spurred by the earlier increases in the p... 09/16/2008

From MarketWatch: Fitch Ratings downgrades AIG to 'A' Fitch Ratings said late Monday that it downgraded American International Group because the insurer's ability to raise capital for its holding company has become "extremely limited." Fitch also kept AIG on Rating Watch Negative. This may be the next shoe to drop for the mega-insurer. It remains to be seen what S&P and Moody's decides to do! Another crazy night... 09/15/2008

Cost of living in 1968 Dow Jones Avg- 943  ( today 12,000-14,000 ) Avg cost of a new home- 14,950.00 ( today 225,500.00 ) Avg income - 7,850.00  ( today 48,200.00 ) Avg monthly rent - 130.00 ( today 1,153.00 ) Gallon of gas - .34 ( today 4.00 ) Avg cost of a new car - 2,822.00  ( today 27,958.00) Movie ticket- 1.50 ( today 7.00 ) Loaf of bread - .22 ( today 3.12 ) Gallon of milk- 1.21 ( today 4.12 ) HOME INTEREST RATES in 1968  - 6.5 %   TODAY -  5.25%     "The financial and credit crisis has lingered on for over a year now, and today some of the biggest casualties are being seen. After 158 years in existence, Lehman Brothers filed bankruptcy due to overexposure of high-risk loans in the mortgage arena. Merrill Lynch is being acquired by Bank of America, which will save them from the sa... 09/15/2008

The five most important words in the language are:  I AM PROUD OF YOU. The four most important words in the language are: WHAT IS YOUR OPINION? The three most important words in the language are: IF YOU PLEASE. The two most important words in the language are:  THANK YOU. The least important word in the language is: I. ~ Robert W. Woodruff 09/15/2008

From the Fed press release: Release Date: September 14, 2008 For immediate release   The Federal Reserve Board on Sunday announced several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities.  "In close collaboration with the Treasury and the Securities and Exchange Commission, we have been in ongoing discussions with market participants, including through the weekend, to identify potential market vulnerabilities in the wake of an unwinding of a major financial institution and to consider appropriate official sector and private sector responses," said Federal Reserve Board Chairman Ben S. Bernanke. "The steps we are announcing today, along with significant commitments from the private sector, are intended to mitigat... 09/14/2008

After the Lehman bankruptcy news, it now looks like Bank of America is close to a deal to buy Merril Lynch. This, after the Countrywide takeover, is huge news for BOA. The financial markets may continue this buyout/bankruptcy waltz for a little while... From theNew York Times' Dealbook: Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill s... 09/14/2008

This shouldn't surprise anyone who has been watching closely. The government can't bail out everyone and Lehman had ample time to find a suitor...which proved to be impossible in this credit and capital starved market. From the NY Times Deal Book Blog: Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, while its subsidiaries will remain solvent while the firm liquidates its holdings, these people said. A consortium of banks will provide a financial backstop to help provide an orderly winding down of the 158-year-old investment bank. And the Federal Reserve has agreed to accept lower-quality assets in return for loans from the government.But Lehman's filing is unlikely to resemble those of other companies that seek bankruptcy protection. B... 09/14/2008

Keep copies of all earnest money checks and proof that the checks have cleared your bank.  Provide this documentation to your lender so that you get proper credit on your closing documents. Notify your mortgage company of the final sales price at least five days prior to your closing.  If your sales price changes from the original  contract, the lender will need copies of all addendums and change orders for the upgrades.  The final closing documents cannot be prepared until both builder and buyer agree to the final sales price. A final inspection is required on all new construction before the loan is closed.  The   appraiser must inspect the property to ensure that it was completed to the original plans and specifications.  The mortgage company schedules this inspection.  The home must... 09/14/2008

The Treasury is attemtping to broker a deal  for Lehman without having to use any more government money. Thid may help stabilize the jittery financial markets... From Bloomberg: U.S. Treasury Secretary Henry Paulson and New York Federal Reserve Bank President Timothy Geithner urged the heads of Wall Street's biggest firms to find a solution to the plight of Lehman Brothers Holdings Inc., signaling their reluctance to use government funds to bail out the investment bank, people familiar with the talks said. Talks between the government and the banks continued today, New York Fed spokesman Andrew Williamssaid. Yesterday's meeting, convened by Geithner, began at 6 p.m. with Kendrick Wilson, a former Goldman Sachs Group Inc. executive whom Paulson tapped last month as an adviser, helping le... 09/13/2008

"Bad credit? No problem!" Unscrupulous mortgage brokers and lenders use lines like this to aggressively target families and steal their single largest source of wealth-home equity. As families work hard to build wealth through homeownership, abusive loans can quickly sabotage their progress and even push them into foreclosure. Predatory lending is most common in the subprime market, where home loans cost more and often come with monthly payments that increase over time. Subprime loans result in foreclosure far more frequently than mainstream "prime" loans. To make matters worse, many of the families steered into high-cost subprime loans could qualify for more affordable, less risky financing. Only a decade ago, the subprime market was a small fraction of the home loan market. At year-en... 09/12/2008

An appraisal of real estate is the valuation of the rights of ownership. Instead of just creating the property value, the appraiser uses market data to derive a value estimate.   The appraiser must take the site, amenities and the physical condition of the property into consideration when compiling the report.  Before the appraiser can come to a final opinion of value, there must be a good deal of data conducted and collected.  He will inspect the property as part of preparing the report.   The need to accurately define the purpose of the appraisal is essential due to the many types of value, such as Fair Market Value, Insurance Value, Tax Value and Value In Use. Mortgage companies request the majority of real estate appraisals to confirm the property's purchase price for loan purposes... 09/12/2008

A credit default swap (CDS) is a credit derivative contract between two counterparties, whereby the "buyer" or "fixed rate payer" pays periodic payments to the "seller" or "floating rate payer" in exchange for the right to a payoff if there is a default or "credit event" in respect of a third party or "reference entity". If a credit event occurs, the typical contract either settles by delivery by the buyer to the seller of a (usually defaulted) debt obligation of the reference entity against a payment by the seller of the par value ("physical settlement") or the seller pays the buyer the difference between the par value and the market price of a specified debt obligation, typically determined in an auction ("cash settlement"). A credit default swap resembles an insurance policy, as it c... 09/11/2008

I have been informed by a friend who is also a gas station owner that the price of gasoline will be rising significantly tomorrow here on the gulf coast and over the next few days over the southeast and the rest of the nation. This is said to be due to the probability of a refining shutdown in Louisiana and Texas. Take it for what it's worth... 09/11/2008

First, the Washington Post, New York Times, and Wall Street Journal all report that the Fed and Treasury are brokering a deal, but are trying to avoid the use of public funds. From the WSJ: Lehman Brothers in Sales Talks; B of A Seen As a Potential Suitor Lehman Brothers Holdings Inc. is actively shopping itself to potential suitors, including Bank of America Corp., people familiar with the matter said Thursday. ... But potential buyers remain wary about plugging holes in Lehman's balance sheet, and are increasingly looking to the U.S. government to help backstop. When will this end? 09/11/2008

As a resident of the Gulf Coast of Alabama, I would like to extend a prayer to our neighbors in Texas as Hurricane Ike approaches. I have been though several hurricanes in my life, from Frederic in '79 all the way through Ivan and Katrina over the last couple of years. Please stay safe... 09/11/2008

Members of the U.S. Senate Banking Committee have asked Fannie and Freddie to freeze foreclosures for loans in their portfolio's for  90 days. ``This action would provide immediate relief to many homeowners'' and let the companies ``turn these non-performing loans into performing assets to minimize losses,'' Senators Charles Schumer, Robert Menendez and other panel Democrats said today in a letter to the companies and the Federal Housing Finance Agency, which is overseeing them under the government conservatorship. The companies also should ease their policies on modifying mortgages, the senators wrote. 09/11/2008

An owner's title insurance policy protects the owner against title defects in the property.  A mortgage title policy protects the holder of the mortgage on the property. Separate policies are required to protect both interests. After the buyer's deed is delivered and recorded, the owner's policy of title insurance is issued. Typically, a purchaser's policy is issued after both parties have executed the contract  and the title agent has recorded the deeds. The coverage of your policy applies only to matters that appeared of record up to the date of issuance of your policy. Some documents may have been recorded since that time; some of these may affect the title to your land. There may be accrued and unpaid taxes and assessments along with possible court actions affecting your title. The ... 09/11/2008

The source of funds for your down payment and closing costs is a high level concern for lenders when they review your loan package for approval.   Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts. If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.  The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. Although potentially quite tedious, you may be required to produce cancelle... 09/11/2008