By BOB TEDESCHI The New York Times

Published: Monday, May 4, 2009 at 1:00 a.m.

Homeowners who are having trouble making their monthly mortgage payments may be able to get some relief by modifying the terms of their loans.

The federal government’s Homeowner Affordability and Stability Plan is aimed at owners whose mortgages are backed by Fannie Mae and Freddie Mac, while other individual lenders are offering help as well.
But borrowers may have a difficult time determining if they qualify for these programs, in large part because loan-modification guidelines are not always widely available, and busy lenders often have little time to explain them to customers.

FICO, formerly known as the Fair Isaac Corp., which developed the most widely used scores for assessing credit risk, has unveiled a Web site —
www.mortgagereliefonline.com – to help these homeowners.

The new site walks borrowers through a questionnaire about their income, mortgage debt and home value, and asks for contact information.

FICO takes that information and pairs it with data regularly received from the credit bureaus about the borrower’s credit and spending history, among other things. The company’s technology then helps determine whether the borrower qualifies for a loan modification. If so, an owner can get further assistance, free of charge, through Money Management International, a nonprofit credit-counseling organization based in Houston.

The system recognizes 30 major lenders and loan servicers, but FICO’s technology will also try to determine whether other lenders who are not on that list offer loan modification programs.

At the end of the questionnaire, MortgageReliefOnline offers an early indication of whether a borrower is eligible to have the loan terms modified. (To qualify, monthly housing payments typically need to exceed 31 percent of gross monthly income, among other things).

Those who qualify for the new federal program can see their mortgage rates drop to 2 percent, while others can obtain loans at the best market rates even if they have less than 20 percent equity in their homes.
Candidates for a loan modification will see an on-screen message telling them to stand by for a phone call, within 48 hours, from a housing counselor.

Borrowers will probably be advised to gather various financial documents, including mortgage payments, car loans and credit card debts as well as pay stubs. If the counselor believes the borrower is a candidate, he or she will forward the file to the lender, along with a recommended course of action.

Mark Greene, the chief executive of FICO, says lenders and loan servicers are more likely to respond quickly to such recommendations than to borrowers who contact them directly. “The servicers know that qualified leads are coming through, with all the information attached,” he said.

FICO receives a portion of the fees that Fannie Mae and Freddie Mac give to lenders and servicers who successfully modify a loan, according to Mr. Greene.

Chuck Stanley, Money Management International’s senior vice president for client education and counseling, said that when his organization’s counselors had contacted mortgage companies in the past about loan modifications, they had typically received a response within 24 hours.

That is not to say consumers should expect to get new loans so quickly. Stanley says it typically takes about 30 days to modify a loan “if the client is responsive” to requests for information from the lender or loan servicer. It can take longer for those without the proper documentation.

Howard Glaser, a principal of the Glaser Group, a mortgage consulting firm in Washington, said borrowers who still get their bills from their lenders — and not from loan servicers — will typically have an easier time because all their loan documentation is in one place.

Glaser called the new FICO Web site “a positive step,” though he added, “just how positive it is will depend on whether the loan servicers will cooperate with the process.”

Some people who keep a watchful eye on their credit scores may wonder whether filling out the Web site’s questionnaire might signal financial distress to the credit bureaus, which in turn could lower their scores.
Not to worry, says Craig Watts, a FICO spokesman. The borrower’s information goes only to the lender and the credit counselor.

Supplied by:
Jay Mitchell
Mortgage Planner
FIMC
Phone: 678-413-3222
Fax: 770-929-3461

Duffy Realty is proud to announce 3 lenders to help Duffy sellers and buyers.

Preferred Lender:
Jay Mitchell
678-413-3222
Jay@LoansByJay.com
www.LoansByJay.com

Preferred Lender:
Stuart Saunders
404-303-2605
Stuart.Saunders@SunTrust.com
www.suntrustmortgage.com/ssaunders

Preferred Lender:
Alisa Peek
Prospect Mortgage
678-910-7903
678-581-4816
Alisa.Peek@ProspectMtg.com
www.AlisaPeek.com

Finally some great news from the Duffy Mobile radio. Pending home sales were up 3% in the month of March beating all expectation. Construction material sales were also up. So properties are moving well for the sellers and the buyers seem to be taking advantage of the record low interest rates. The trend seems positive and again consumer confidence heading up, we will work our way out of this down turn soon!

Thanks!
Bill Hanlin
Duffy Listing Team, GO TEAM!

Final Score: $8,000 for Homebuyers

First-time purchasers get a tax credit windfall if they buy before December.

Les Christie, CNNMoney.com staff writer

There’s a nice windfall for some homebuyers in the economic stimulus bill. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes, Billings would get back the $8,000 plus what he’d overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate’s proposal of a $15,000 non-refundable credit for all homebuyers.

“[The Senate version] would have done a lot more to turn around the housing market,” said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). “We have a lot of reports of people who would be coming off the fence because of it.”

Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” Yun said.

Who won’t benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle – they still have to close the sale before claiming the bonus.

One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the down payment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB’s Dietz.

Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.

And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home – a lawnmower, a rug, a sofa – and, in that way, help stimulate the economy.

Reprint courtesy of CNNMoney.com

Still at introductory price of $40 until further notice. Site increased hits from 1.5 million in March to 2.2 million in April. Roughly about 15% of the people viewing the site looks at the feature listings, that’s ball park about 330,000 people looking at the featured listings. Come get in while you can!

Call Tiffany at 678-366-3791

I’m not sure if it’s the economy or if traditional agents are just realizing a good thing when they see it but, their has been a drastic increase in agent referrals for listings. It seems as though most of my recent listings the clients says an agent referred them. Whether it’s a family member or a friend I keep hearing the same things. Try Duffy Realty you save a lot and get the mass exposure you need on the Internet. Or Duffy Realty the way to go, especially in this uneasy economy. I don’t know if these agents are just facing the fact that the Internet has changed the way people buy and sell homes. Maybe they are in the mindset that the real estate market is bad and they don’t want the headache, I don’t know, but what ever it is I like it. Nothing makes me feel better than to go to a listing and during our conversation I’m told a fellow agent has referred them to Duffy Realty. I already know that Duffy is 92% referred by satisfie! d and happy previous clients. Now we can add that we are probably most referred by other agents! That’s when you know you are doing good for consumers when your competition thinks enough about you to refer business.

- Mala Edwards, Listing Team

We have a new part of our website that we are still working on and need your help please.

We are attempting to showcase every subdivision in Metro Atlanta with homes for sale in those neighborhoods. I thought a cool addition to that would be for homeowners to tell buyers about the neighborhood. Of course I will moderate these comments!

Please follow this example and email us something about your neighborhood.

Wood Valley subdivision is nestled in the horse of Milton’s horse country. This quiet two-street subdivision of 55 houses runs the length of the Alpharetta Athletic Club’s West Golf Course. The large homes set way back off the road on large 1+ acre lots offer maximum privacy amidst a social setting. No cookie cutter homes here. Each is unique and offers it’s own charms. Lush mature landscaping lines the properties, the streets and common areas. Much of the surrounding land is in a flood plain and offers a naturally beautiful buffer to future growth. A multi-million dollar neighborhood rests on the other side of the open space. The even mix of young families and empty-nesters provides a friendly environment for all. Minutes from the new shopping and restaurants on Birmingham Road and with easy access to 3 exits of GA 400 makes this conclave of homes perfectly placed. There is no Homeowners’ Association yet common guidelines of good nieghborliness are followed. There are voluntary donations accepted and made for the upkeep of the front of the subdivision. Come find your dream home nestled in the Georgia of yesterday – today.

Thank you for your business and support in this project.

I want you to know that I am digging really deep to figure out how to motivate buyers to take action. If you have ANY ideas, please send them to me.