Get Plumbing Leak Tests For Older Homes

By Troy Corman, todayshomedeals.com

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Any home that you buy built before 1980 is susceptible to plumbing leaks. I've learned this the hard way. That's why I recommend plumbing leak detection tests for all older homes. These tests are routinely performed in the feasibility stage of apartment and commercial real estate acquisitions. A plumbing leak detection test on regular-sized DFW houses will run you from about $200 to $350. Doing this upfront during the inspection period can alert you to problems not detected by your typical home inspection. Nearby trees in the yard can exacerbate the problem - even if it's a tiny, pinhole crack. As some plumbers will attest, tree roots can "smell" water. In many DFW homes and North Texas suburbs, we get a lot of ground movement between seasons, which puts a lot of strain on pipes.

Also, be sure to always get a plumbing leak test on your home after doing any foundation work. This is also a must if you're buying a home that has recently had foundation work performed by the previous owner.

There are a couple of different ways to fix leaks. One is the old-fashioned way. Dig through or under the slab to remove the faulty pipe and replace it with new pipe. The other involves an epoxy sleeve which can be placed over the faulty pipe without busting out the slab or walls.

If you need help with plumbing or any other home remodel or rehab needs, contact me at 214.690.9682 and I'll do everything I can to help.

More Luxury Homes Headed For Default

Bloomberg Article Summarized by Troy Corman, todayshomedeals.com

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Stock market losses, pay cuts, a sluggish economy and tighter credit have put the squeeze on an increasing number of wealthy homeowners. As a result, homeowners with $1 million mortgages are defaulting at almost double the U.S. rate.

About 12% of mortgages at $1 million and up were 90 days or more past due in September, compared with 6.3% on mortgage loans less than $250,000, according to data compiled by First American Core Logic.

The result has been a 3-fold increase in short sales. A short sale is when a lender agrees to let the borrower sell his or her home for less than the amount owed on the mortgage. Although it's not good for the borrowers' credit score, it's much better than a foreclosure.

Porter Michael Peterson was the lucky recipient of a short sale in Tampa, Florida. The Atlanta Falcon and NFL veteran recently purchased a mansion there for $1.1 million, almost half the amount of the original mortgage on the home that was previously bought in 2006.

The upper-end market has also been hampered by tighter lending standards. Mortgages outside the fannie mae and freddie mac framework are few and far between. Banks would rather borrow at close to 0% and buy 10-year treasury bonds at 3.5%, and make the spread, than make riskier home or business loans. While interest rates are at historically low levels, many can't take advantage, as banks continue to reduce credit lines and credit cards each month.

Hopefully, the home buyer tax credit can help some upper-income home buyers. It was extended to April 30, and was expanded to cover more upper-income buyers. Singles with modified adjusted gross incomes of up to $145,000 can qualify although phase-outs begin at $125,000. For couples filing jointly, the credit begins phasing out at $225,000 and modified adjusted gross incomes above $245,000 do not qualify.

Also, homeowners who have lived in their current principal residence for 5 years can qualify for up to a $6,500 credit. Homes priced up to $800,000 are eligible for the credit.

DFW Home Buyers Can Get Cash Back At Closing From T2 Real Estate

By Troy Corman, todayshomedeals.com

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Todayshomedeals.com home buyer clients can get up to $2,500 in CLOSING COSTS REDUCTIONS. This offer is for a limited time as home buyers must sign a home purchase contract by February 1, 2010. Other restrictions apply, so contact T2 Real Estate for details at 214.827.1200 or info@t2realestate.com.

Additional Reasons To Buy A Home Now Include:

1. FHA loan officials are increasing insurance costs for borrowers in 2010.

2. FHA loans are reducing the amount that sellers can pay for borrowers closing costs from 6% to 3% in 2010.

3. FHA may raise down payment requirements higher than the current 3.5% required now based on borrower credit scores.

4. Financial experts predict mortgage interest rates will rise in 2010.

5. Buy a house before you file your 2009 taxes, and you could get the government tax refund back shortly after April 15th - in 2010!

6. Buy now before buyer competition greatly increases as we approach the April 30th government tax refund deadline (must have signed contract by that date).

7. Buy now in the "off-season" as home prices typically increase in the spring and early summer months.

Buy A Home Before You File Your Taxes And Get The Government Tax Refund In Early 2010.

By Troy Corman, todayshomedeals.com

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Home buyers that buy soon can get their government tax refund shortly after completing and filing their 2009 taxes. Since many file and pay their taxes well before the April 15 deadline, some home buyers that buy an inexpensive, starter home with a FHA loan could literally end up buying a home with no money out of their pocket - after being reimbursed with the government home buyer tax refund.

And if that's not enough, listed below are additional reasons to buy sooner, rather than later, as FHA loans and most mortgages are predicted to get more expensive in 2010.

1. Financial types expect rising interest rates in 2010.

2. Buy before you file your 2009 taxes and get the government refund in early 2010.

3. FHA loans are going to get more expensive for borrowers as Congress has indicated it's approval of higher borrower insurance costs, cutting the amount sellers can pay for buyers' closing costs from 6% to 3%, and possible higher down payments (beyond the standard 3.5%) based on borrowers' credit scores.

4. Lastly, I would expect more buyer competition and less dilly-dallying as we get closer to the April 30 government home buyer tax refund deadline (executed contract deadline date - must close by June 30, 2010). Buyers and agents will most likely not sit around and mull decisions as attractive homes will get gobbled up and put under contract quickly.

If you plan on buying a home in late 2009 or early 2010 before the feeding frenzy begins, you will need: The standard Form 1040 and Form 5405 for the home buyer tax credit.

1. First begin Form 1040.

2. Be sure to take note of your adjusted gross income, which you enter on lines 37 of the form. Form 5405 actually requires you to note your modified adjusted gross income, but that affects few people, so most will just use their adjusted gross income.

3. When you come to Line 69 you'll be asked to enter your tax credit amount. To do that, you'll need to first complete Form 5405.

4. Once you complete Form 5405, enter the amount on Line 69, then complete your return.

5. Attach Form 5405 to your return.

Any refund for which you qualify will be sent to you.

Dallas Cracking Down On Slumlords.

By Troy Corman, todayshomedeals.com

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Dallas City Council approved a new ordinance to prevent slumlords from creating neighborhood blight. The new ordinance will require owners to register with the city and will give officials new powers to crack down on those who don't keep their property up to standards.

Failure to register or cooperate with the program could result in a $2,000 fine. Non-resident owners will also have to pay a $25 fee and register basic contact information with City Hall.

Check out the video which identifies slumlord properties and the owners' personal homesteads on the other side of the tracks.

Most DFW Homes Prices Rise In The 3rd Quarter.

By Troy Corman, todayshomedeals.com

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Overall, Dallas/Fort Worth area home prices rose in the most recent quarter. The government tax refund, and historically low interest rates, have prompted many buyers to take advantage of this unprecedented buying opportunity. Statistics below break down a few of the large Dallas/Fort Worth area counties in detail.

The average price of homes in Dallas County rose in the first two months of the third quarter to $205,000 from an average of $204,200 in the second quarter. The number of homes sold ticked up to 5,353 from 5,284 in quarter two. The average number of days on the market was unchanged at 77 days.

The average price of homes in Collin County ticked down a bit to $234,400 from $237,800 in quarter two. The number of homes sold however, increased to 3,230 units versus 2,955 units in the second quarter. The average days on the market decreased in quarter three to 71 days versus 75 days in Q2.

Denton County homes increased in average price to $220,100 from $215,500 in Q2. The number of homes sold ticked up from 2,409 to 2,529. Average days on market was unchanged at 72 days.

Rockwall County homes average sales price jumped from $205,400 to $216,200. Homes sold in Rockwall County increased from 309 to 377 in quarter three. Average days on market also increased from 87 to 96 days.

Tarrant County homes average home prices ticked up to $178,100 from $177,100. The number of Tarrant County homes sold increased to 5,192 from 4,806 in Q2. Average number of days on market fell to 72 days from 78 previously.

Statistics were compiled by the North Texas Real Estate Information System, more commonly known as NTREIS.

Buying With FHA Loan? Better Buy Soon As It Could Get Less Advantageous.

By Troy Corman, todayshomedeals.com

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The Federal Housing Administration is getting low on funds. It announced Wednesday new ideas to generate more revenue from those seeking FHA mortgages. The new measures are designed to replenish their quickly dwindling reserves that are now $3.6 billion, which is only 0.5% of the $685 billion in loans the FHA insures.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development has asked Congress to raise the cap on the annual insurance the FHA can charge borrowers. The plan also includes making borrowers put more money down, and to set new minimum credit score requirements. The FHA will also limit the amount of money that sellers can provide for closing costs on home sales to 3% of the home price, from the current level of 6%.

Also I would expect that as the government tax refund deadline approaches, there will be much more competition among buyers. So if you're in the market to buy, it's best to get it while the gettins' good.

Wealthy Investors Plan To Buy More Real Estate

Bloomberg Article Summarized by Troy Corman, todayshomedeals.com

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Investment giant Barclays Plc says twice as many wealthy individuals plan to raise their investment in commercial and residential property as intend to reduce it. According to Barclays's recent global survey, the richer the individual, the greater the proportion of wealth is placed in real estate.

Commercial and residential real estate prices have declined across the globe except for Asia. As a whole, commercial real estate has declined 21% in this year's first 3 quarters.

Almost 30% of British and Indian investors hold more than half of their wealth in real estate. Approximately 40% of individuals worth more than $49 million also hold more than half their net worth in real estate.

3 out of 4 investors surveyed find residential real estate attractive while 2 out of 3 may explore commercial real estate investments. The U.S. was the favored market to invest, since many believe it has the highest potential return on investment.

Mortgage Rates Fall To All-Time Low.

By Troy Corman, todayshomedeals.com

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According to Freddie Mac, the 30-year fixed-rate mortgage average fell to 4.78% with an average 0.7 point for the week ending Nov. 25. Previously, the average 30-year mortgage rate was 4.83%, while the average a year ago was 5.97%.

Fifteen-year fixed-rate mortgages averaged 4.29% for the week ending Nov. 25. The 15-year rate is the lowest in Freddie Mac's history. This week's average is down from 4.32% last week and 5.74% a year ago. House prices are slowly beginning to firm now and I suspect they will continue to rise the closer we get to the new April 30, 2010 government home buyer refund deadline.

Home Buyer Tax Credit Extended AND Expanded For Higher Incomes And Current Home Owners.

By Troy Corman, todayshomedeals.com

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The new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline for the government tax refund for home buyers. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.

Income limits have also been raised. Singles with modified adjusted gross incomes of up to $145,000 can qualify although phase-outs begin at $125,000. For couples filing jointly, the credit begins phasing out at $225,000 and modified adjusted gross incomes above $245,000 do not qualify.

Also, home owners who have lived in their current principal residence for 5 years can qualify for up to a $6,500 credit.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

The credit:

* Applies only to homes used as a taxpayer's principal residence.
* Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
* Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

With interest rates near record lows, a plethora of bank-owned properties that need to sell, and Uncle Sam forking over free money, don't be one of those who looks back in a few years and says, "shoulda, coulda, woulda".

Obama Administration Feeling The Heat Of Increasing Foreclosures - Blames The Banks.

By Troy Corman, todayshomedeals.com

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According to an article in the New York Times, the Obama administration has announced that on Monday it will pressure mortgage companies to reduce payments for more troubled buyers facing possible foreclosure. The $75 BILLION taxpayer-financed modification program aimed at stemming foreclosures has been a colossal failure.

Once again, the administration is pointing fingers at others, and now is blaming the banks and the mortgage servicers for another government billion-dollar bailout gone bad.

The banks are not doing a good enough job,” Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview Friday. “Some of the firms ought to be embarrassed, and they will be.”

Lenders are reducing mortgage payments for borrowers at an increased speed, but most of the loans modified through the Making Home Affordable program remain in a trial stage lasting up to five months, and only a tiny fraction have been made permanent.

Also, a large percentage of modified loans end up in default again. Critics argue that the program was geared toward adjustable rate mortgages that had initial super-low teaser rates. These critics state that the big problem with new foreclosures is job loss and an increasing level of U.S. unemployment, which are the new causes of foreclosures and home loan delinquencies.

The Democrat-controlled branches of government have been obsessed with a government health care plan, and have ignored the famous political axiom "it's the economy stupid", during this country's deepest recession and tightest lending standards since the Great Depression.

But help is on the way. They're going to start focusing on the economy, I'm told, next year.

Fannie Mae's "First Look" Gives Owner-Occupants First Crack At Fannie Mae REOS.

By Troy Corman, todayshomedeals.com

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Fannie Mae has announced a new initiative which gives owner-occupant home buyers a head start on would-be investors. The program, called "First Look" prohibits investors from submitting contracts on Fannie Mae foreclosures (Fannie Mae REOS) the first 15 days they're put on the market for sale.

The First Look Initiative is aimed to help first-time and low-income home buyers who are interested in buying a home to live in. With the government tax refund extended to April 30 (must have a signed, executed contract for a home purchase by that date), and the outrageously low interest rates, starter homes in Dallas/Fort Worth should continue to sell briskly.

The First Look Initiative also allows longer closing periods, and lower earnest money deposits for owner-occupant home buyers. Hopefully, it will get some deserving families into some homes they can enjoy.