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Peter Miller Writing/Editing

Date: May 18

Hi --


I have posted the HUD Mortgagee Letter, 2009-15. This is the letter which as of this writing is no longer on the HUD site.

This is a very interesting letter and not-at-all unreasonable. Hopefully it will return as part of HUD's goal to re-start the housing marketplace.

The letter can be found at:

 

Peter G. Miller
 

 

 

 
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John Cleek Licensed Real Estate Agent,  Louisburg,  KS

Date: May 18

Tom,


 
HUD removed the Mortgagee Letter from their website before we could download it. I guess that is a form of recension, right?

John

 
John E Cleek, Ph.D., e-PRO,
Certified Short-Sale Professional
Realtor� and Marketing Consultant
The CrownPlatinum Team
Crown Realty of Kansas
Miami County - Linn County - Johnson County
1005 W. Amity � Louisburg, KS 66053
Licensed in Kansas and Missouri
Pho: 913-709-4423 � Fax: 913-837-2549
Finding the RIGHT REALTOR . . . Priceless!

 
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Carlos Cardo Licensed Real Estate Broker,  Virginia Beach,  VA

Date: May 18

Hi all,

Mark and Tom presented interesting points to debate on the tax credit and Mark even provided a link.

When I clicked the link though I received an error page, so……

I called the FHA Resource Center, and a Rep informed me that the latest details are as follows:

"The letter has been put on hold, details are being worked out and the new one should be published soon."

This is the most current information as of 0930 18 May 2009 (Monday).

Sincerely,

Carlos A Cardo- USMC (RET) Associate Broker
REALTOR®, CRS, GRI, ABR,
CSP, SRES, CNHS, RCC, e-PRO
Direct Tel: 757-971-3574 Toll Free: 866-971-3574 Fax: 757-282-6717

Covering:
Norfolk, Virginia Beach, Chesapeake, Suffolk,
Portsmouth, Hampton and Newport News
mailto:carlos@CarlosCardo.com
Visit http://CarlosCardo.com

RE/MAX Alliance
4701 Columbus St, Suite 200
Virginia Beach, VA 23462

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Marilyn Brown Licensed Real Estate Agent,  Wichita,  KS

Date: May 18

I received the following information on Friday from one of my lenders:

DON'T BE FOOLED!!!! AS OF TODAY you can NOT use the tax credit for a down payment

Yes there has been a lot of discussion about this topic but it is NOT an option currently. Those statements were made by the SECRETARY of HUD yesterday and a HUD/FHA letter was published on the website Monday night.

BUT……..the new DIRECTOR of HUD pulled that Mortgagee letter this morning and is no longer even available on the HUD website.

Here is the link to all Mortgagee Letters:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Notice ML 09-15 has been pulled.

This theoretical program is now off the table…….and should NOT be used until there is a real concept of how to offer to your borrowers with real answers as to where the money might come from.

Before this happens there would need to be:

  1. State agencies approved WITH MONEY for the down payment
  2. A Change to the HUD guidelines on the timeframe that is allowable for a loan….currently must be amortized over 10 years with no balloon.
  3. A change to the IRS guidelines allowing your refund to be assigned to a state or non-profit entity.

Marilyn Brown, ABR, e-PRO, REALTOR®
Prudential Dinning-Beard, REALTORS®, Wichita, Kansas
Ph: 316-636-2323 Cell: 316-393-6758 Fax: 316-636-2744
Email: Homes@Wichita-Properties.com Web: www.Wichita-Properties.com

 
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Tal Kramer Licensed Real Estate Agent,  GA

Date: May 18

What is most alarming about all of this is how quickly the government is going right back to the practices of the past that got us in the current financial crisis we are experiencing.
----------
I second Tom's statements. How in the world can we be so dumb as to once again make it so that people who shouldn't qualify for loans can now do so. If our gov't lets people use the $8k Tax Credit as their down payment, many of these will end up in foreclosure once again.

Tal Kramer

Tal and Jeanette Kramer
Re/Max Communities - Metro Atlanta
770-971-0025
678-978-1900 - Tal cell
678-978-1800 - Jeanette cell
Kramer@MyDreamHome.com - Tal
Jeanette@MyDreamHome.com - Jeanette
www.MyDreamHome.com

We're never too busy for your referrals :-)

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Tom Hathaway Licensed Real Estate Broker,  TN

Date: May 18

John C
It is my understanding, in spite of what some may want to believe, that the letter was recinded. Part of me thinks this is bad for the short term, but also part of me thinks this is good for the long term. Of course, there is at least one person we know  who think I made up what I said in my previous post. As Clark Gable said in "Gone With The Wind". "frankly my dear, I don't give a damn".

Tom

A Good Credit Score is 700 or Above. See Yours in Just 2 Easy Steps!
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Tom Hathaway Licensed Real Estate Broker,  TN

Date: May 18

For several months I have not posted on Real Talk. Finally, yesterday I decided to post what I understood was happening within HUD concerning the $8,000 so called "First Time Home Buyer Program". Immediately, Mark Jay came out and attacked me. Mark, I hope you have been reading today's posts. It just goes to show that it is hard to for old dogs to learn new tricks. Or maybe the old saying that you can take the boy out of the country, but you can not take the country out of the boy.
Tom Hathaway

 

A Good Credit Score is 700 or Above. See Yours in Just 2 Easy Steps!
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John Cleek Licensed Real Estate Agent,  Louisburg,  KS

Date: May 19

Tom,


 
I agree with you. I, too, think it was withdrawn. The intention seems to be to edit, re-think, clarify, whatever and then re-issue a letter that accomplishes the objective in a way that does not promise more than it can deliver. I am not trying to be easy on the staff who drafted and posted the original letter attempted to put it writing what Secretary Donovan had promised. They were doing their job. I think everyone from the Secretary on down were trying to help first time home owners who might be able to qualify for a loan on the basis of income, continuity of employment, etc. but who would find the down payment on a $75,000 home a hurdle that was causing them to back away. If the intention of the tax credit was to draw first-time homeowners who other wise might not be able to buy a home into the market, why make them wait six weeks for the cash that buying a home had earned for them. Certainly they needed cash at closing as much or more than they would need cash in a month or so.

 
But they failed to consider the logistical and management challenges presented by 50 different sets of state laws, traditions and practices to say nothing of the myriad of lenders each with their own idiosyncratic policies regarding closing. Apart from issuing a voucher good only on home closing, there may be no way to achieve the Secretary's noble intent without enormous confusion. As I reported previously, Missouri has an agency that encourages buyers to arrange a second mortgage (they refer to it as a bridge loan although that may be a bit confusing since they are not waiting for another property to sell) due when the tax credit is received. They also permit the buyer to spread the repayment over a period of months or years.

 
Lenders are telling me that this is not such a good deal for the buyers. The net effect may be to increase their APR by close to 1 point.

 
My reference above to issuing a voucher good only on home closing seems to me to have merit. It would be a kind of no-fund warrant payable by the Feds on presentation to HUD accompanied by a copy of the HUD 1 showing the amount of funds credited to the buyer at closing.

John

 
John E Cleek, Ph.D., e-PRO,
Certified Short-Sale Professional
Realtor� and Marketing Consultant
The CrownPlatinum Team
Crown Realty of Kansas
Miami County - Linn County - Johnson County
1005 W. Amity � Louisburg, KS 66053
Licensed in Kansas and Missouri
Pho: 913-709-4423 � Fax: 913-837-2549
Finding the RIGHT REALTOR . . . Priceless!

On May 19, 2009, at 1:55 AM, Tom Hathaway wrote:

Having trouble viewing this message? Please visit: http://www.realtown.com/community/RealTalk/view/00DUKH
RealTown - The Real Estate NetworkRealTalk
News
RE: New Proposed Use of Tax Credit
Tom Hathaway Licensed Real Estate Broker , TN
May 18, 2009
Profile Image
John C
It is my understanding, in spite of what some may want to believe, that the letter was recinded. Part of me thinks this is bad for the short term, but also part of me thinks this is good for the long term. Of course, there is at least one person we know who think I made up what I said in my previous post. As Clark Gable said in "Gone With The Wind". "frankly my dear, I don't give a damn".

Tom

 
 
 

 
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John Cleek Licensed Real Estate Agent,  Louisburg,  KS

Date: May 19

Glad to have you back Tom.

 
I suppose all of us have encountered occasional heckling. :0|
 
I certainly have but I long ago developed the ability to accept (and occasionally give out) feedback that might be unwarranted or unfair, at least in the mind of the one on the receiving end. I simply mutter to myself, Everyone is entitled to their opinion, even when they are dead wrong. :-))

John
 
John E Cleek, Ph.D., e-PRO,
Certified Short-Sale Professional
Realtor� and Marketing Consultant
The CrownPlatinum Team
Crown Realty of Kansas
Miami County - Linn County - Johnson County
1005 W. Amity � Louisburg, KS 66053
Licensed in Kansas and Missouri
Pho: 913-709-4423 � Fax: 913-837-2549
Finding the RIGHT REALTOR . . . Priceless!

On May 19, 2009, at 1:56 AM, Tom Hathaway wrote:

Having trouble viewing this message? Please visit: http://www.realtown.com/community/RealTalk/view/00DUKH
RealTown - The Real Estate Network RealTalk
News
RE: New Proposed Use of Tax Credit
Tom Hathaway Licensed Real Estate Broker , TN
May 18, 2009
 Profile Image
For several months I have not posted on Real Talk. Finally, yesterday I decided to post what I understood was happening within HUD concerning the $8,000 so called "First Time Home Buyer Program". Immediately, Mark Jay came out and attacked me. Mark, I hope you have been reading today's posts. It just goes to show that it is hard to for old dogs to learn new tricks. Or maybe the old saying that you can take the boy out of the country, but you can not take the country out of the boy.
Tom Hathaway

A Good Credit Score is 700 or Above. See Yours in Just 2 Easy Steps!
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Tom Hathaway Licensed Real Estate Broker,  TN

Date: May 19

John,
What concerns me is that what HUD is now labeling as a "first time" home buyer are exactly the same folks to purchased homes using the B/C loop holes that began in the early 2000s. As time goes on, we are most likely to see ALL of those people once again buying homes they can not afford, hence the repeat of the same miserly we are going through right now, only about 3 years down the road. I for one don't want to see this happen again.

As a very successful lender here in the Memphis area told me, it is de' je vue all over again. It is time for HUD to realize that not everyone will ever be qualified to buy a home. There will always be those who just simply have other priorities in life and would rather drive a new car every year, use drugs, or take large vacation each year, instead of owning a home. Most of us have leaned that you can not do it all on a normal pay check.

All of this giving away of money is to those who do not deserve it is going to break the country and make it much harder for those who work hard and are responsible with their money succeed in the future. It is all about socialism.

Tom Hathaway


A strong credit score is 700 or above. See Yours in Just 2 Easy Steps!
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