Topping the list of institutions under fire are the familiar faces of Fannie Mae and Freddie Mac, the poster children for good intentions gone bad. The government entities faced renewed federal scrutiny earlier this year. What to do with the troubled HUD groups, however, is still up in the air. The issue is delayed until after the current federal bank restructuring effort is completed, which is anticipated by year-end.

Reformation is definitely on the horizon for these two lenders. The Treasury Department is considering an expansion of options on guidelines officials released in June regarding both lenders. Privatization, nationalism, hybrid strategies are all being measured for reform.

Fannie and Freddie were taken into conservatorship by the federal government last year as the financial crisis spread. Governmental control seemed inevitable. If the two were to collapse, it was thought that the damage would be irreparable and more widespread and devastating than even the Lehman Brothers' failure.

Reform is critical, since these entities provide the majority of home loans in the U.S. The U.S. Treasury Department was authorized to purchase Fannie and Freddie mortgage securities through the end of this year. Legislation is anticipated to extend the Treasury's conservatorship through the end of 2010.

Wells Fargo, the receiver of $25 billion in bank bailout money, was the primary lender on two recently shuttered businesses in Alabama. Wadley company Plantation Patterns and Anniston corporation Anniston Sportswear both filed for bankruptcy, and Wells Fargo was the primary lender for both companies. According to federal statistics and a local mayor's report, a total of more than 660 jobs were lost in both closings. Birmingham-based Meadowcraft is the parent company of Plantation Patterns. Chicago-based Hartmax Corporation is the parent company of Anniston Sportswear.
Wells Fargo's apparent refusal to work with either business brought federal scrutiny. In two separate incidents, the lender was named by over 40 members of Congress in complaints written to Treasury Secretary Timothy Geithner.

Not unfamiliar to federal scrutiny, Countrywide came under the federal microscope again last year, this time by a federal bankruptcy court official. Accused of destroying, losing or misplacing $515,000 in checks issued by homeowners, the home lender was further accused of adding inappropriate charges to the bankruptcy debt of homeowners.

Countrywide eventually worked out a deal with the court; however, the Justice Department challenged the settlement due to some unsavory terms presented by the mortgage lender. A non-disparaging clause was included, which caused the judge in the case to approve a probe of Countrywide's entire systems by the U.S. trustee.

Many mortgage lenders letting loans for reverse mortgages are now being examined under federal scrutiny. Some lenders responsible for predatory lending have now turned to high-pressure tactics and broad-yield premiums intended to rip off elderly homeowners. Michael S. Blume, U.S. Attorney, noted a dramatic increase in reverse mortgage loan numbers.

Bank of America and Wells Fargo, along with insurers like MetLife and Genworth, heavily invest in reverse mortgages worth about $17 billion annually. The FHA insures most reverse mortgages. Lenders are approved by HUD. Borrowers are required to meet with HUD-approved counselors prior to being approved for the reverse mortgage loan. New certification requirements have resulted in a reduction of counselors available nationwide, alongside an increase in the number of reverse mortgage loans.

The similarities of subprime loans to reverse mortgages are eerily similar in their predatory lending practices. Senior homeowners are strongly encouraged to avoid high-pressure sales that involve add-on products and services for reverse mortgages.

For more mortgage lenders under federal scrutiny, check out the Federal Trade Commission website at FTC.gov. You'll find formal complaints and current cases being prosecuted by the federal government.

Ki developed a website to serve Austin real estate investors. The site lets people search for homes and condos in the Austin MLS. His site has information on historical mortgage rates along with general information on Austin real estate.

How do you find the best deals and safely invest overseas? There are lots of opportunities to choose from, since many countries in the world are opening up their markets to foreign investors.

In order to invest safely, however, you'll want to be cautious, plan carefully and understand the particulars that go along with purchasing property overseas, like taxes and financial laws specific to the country. It is strongly advised that you use an overseas user to look over any investment you make overseas.

Before deciding on a country in which to buy property, take into consideration the areas that are available. Don't limit yourself to the first country that comes to mind. The Middle East and places in Eastern Europe are becoming more open to foreign investors.

Real estate prices fluctuate, so you can sometimes find a bargain in an unexpected place. With all the flux in world economies today, home values can change in a matter of days.

You've heard the expression that real estate is all about location, location, location. This is even more critical when investing overseas. Become familiar with the country and area in which you are interested in buying real estate. Know its economy and political climate. You don't want to invest in property in a volatile nation or in property that will devalue as soon as you pay for it.

Keep in mind what aesthetics are important to you in regards to the location of the property. Decide if you will be renting the property out and what needs renters would have. Is it located near a beach, airport or shopping mall? If buying it for yourself, is it property that you would be comfortable living in long-term?

Once you've decided on a location, you'll want to find property that meets your needs. Take a trip and spend a few days in the area, so that you can do research locally. Check out newspaper ads for local property or for sale signs in front of homes in the area. International publications are also a good resource for listings, along with ads online.

If the task seems too daunting, you may want to use an overseas property consultant. There are serious issues you'll want to be aware of that you may not be able to ascertain yourself. You'll need to know if it has a duplicate title or if there are claims on the property. There are so many processes that are unique to certain countries that you may not be aware of or find out about. From helping you find property to obtain financing for it, an overseas property consultant can provide the advantage of guiding you through every step of the process.

When obtaining financing, make sure you research all the possibilities. There are numerous options for financing available. Find out which one is best for you. You may fair better by working with a local lender there if the country in which you want to invest is open to foreign investment. Sometimes overseas lenders can provide better advantages than a local bank. In addition, you may want to inquire of international mortgage lenders or brokers, since they may be able to assist you in finding the best financing available.

Many people have successfully invested in overseas properties and some have even made their millions from it. Just proceed with caution and become informed. Your success may hinge on what you know.

Ki works as a real estate broker in Austin, Texas. He maintains a website to search Austin Texas real estate. The site offers free and exhaustive information on the Austin market along with a search for homes in the Austin MLS. It also provides a blog with statistical information on Austin real estate

Are you preparing to buy a home for the first time? Or have you closed on a number of homes in the past and are preparing to buy your next home? Regardless, you'll want to keep in mind the steps necessary to successfully navigate the preparations for buying that next home.

Initially, you'll want to determine your income, debts and savings and decide what you can afford. Instead of doing all the calculations and attempting to make the determinations yourself, you may want to decide on a reputable lender and have them do it for you through a prequalification. If you know that you will not be accumulating any further debt, the prequalification will tell you how much you will be able to loan for your next home.

A word to the wise, however, is that you may want to consider buying a home that is 10 percent less than what you are prequalified for. It will give you more wiggle room for future unforeseen purchases.

Finding a lender is easy. They can be located throughout the Internet, in the Yellow Pages, at mortgage brokerages and in banking and financial institutions. Finding a good lender, though, may not be as easy.

You'll want to find a reputable lender who can give you the best deal and you'll want to find a loan that meets your needs, preferably one that has a low interest rate and relatively low monthly payments.

If you've used a lender to buy a home in the past that you trust, you may want to start there. For a broader selection of lenders, however, comb through the Internet for sites that display the Better Business Bureau (BBB) or other accreditations. Also, talk to friends and family about lenders they have successfully used in the past. You might want to consider a mortgage broker over a banking institution. They have a access to a variety of lenders who offer a variety of options.

Pick ten lenders total to inquire about a home loan. Ask about different loans available and which ones might work best for you. Depending on your buying situation and the number of years you intend on owning the home, you may want to consider an adjustable rate mortgage (ARM) or balloon loan with a refinancing option as opposed to a traditional fixed-rate mortgage.

When you decide on the loan type, get a quote for interest rates, APRs and all fees associated with the loan from each lender, and request that they send the quotes to you in writing. Make sure when you request the interest rate that you ask how long the rate is good for (through what date).

Try to obtain all this information within a week's time, so that interest rates don't fluctuate too much. They actually can from day-to-day, depending on trading market activity.

Once you find a lender and know how much you will be able to loan, you'll need to find a home to buy. You probably already have in mind what you want in your next home. A licensed realtor, however, has access to a variety of resources to enable you to most successfully find your next dream home.

Inquire of friends and family in order to find a reputable realtor. If no one knows of one, look in the local phone book and pick out three different realty companies to contact. You'll want to either ask for the realtor with the most closings or for the realtor who has just been licensed.

Many people suggest that you use the realtor with the most closings, because they experience the highest rate of success in sales. New agents, however, can be just as valuable, since they are hungry for a sale and will often go beyond the call of duty, even beyond that of those who are very experienced, in order to sell your home.

Use your intuition in deciding on realtors to interview in person. Put together a short questionnaire that you ask of each when you initially speak to them over the phone. You'll want to ask each of them for two references of people who have used them in the past.

Some questions you might want to ask of experienced realtors in your phone interview are:

* How many homes have you listed versus how many you have sold in my subdivision, neighborhood or city (whichever are applicable) in the last year, or the past (whichever is most relevant)?
* What types of advertising do you use to promote the sale of homes you list - multiple listing service (MLS), flyers in tubes at the curb of the home, newspaper advertising or other media outlets, agent open houses, public open house, etc.?
* How many homes do you have listed currently on the market in my subdivision, neighborhood or city?
* Do you have any marketing materials?
* Do you have any additional accreditations? If so, which ones?
* Will you be my only point of contact or do you have others who would be assisting me through the process?
* What commission do you charge? Some can vary as much as 2 percent.

Questions for new realtors may be as follows:

* What did you do as a profession before you became a licensed realtor?
* How did you approach your previous profession in order to be a success?
* What will your plan be to sell my home?
* What types of advertising will you use to promote the sale of my home - multiple listing service (MLS), flyers in tubes at the curb of the home, newspaper advertising, agent open houses, public open house, etc.?
* How are you building your reputation as a new realtor?
* Do you have any marketing materials you can provide to me?
* Do you have any additional accreditations? Is so, which ones?
* Will you be my only point of contact or do you have others who would be assisting me through the process?
* What commission do you charge? Some can vary as much as 2 percent.

Some of the items you request over the initial phone interview may have to be provided when you meet face-to-face. For the in-person meeting, however, you'll want to include the following questions:

* Do you update your clients regularly regardless of whether there is new information to provide? If so, at what regular intervals?
* What is your marketing strategy to sell my home?

You may think of other questions that are pertinent to your situation. Jot them down before the interview and don't finalize the interview until all your questions have been answered.

After the interviews are completed, compare commission and responses of each. Decide on which licensed realtor you'll use, and you'll be well on your way to obtaining your next home purchase.

Ki maintains a website, which works as a clearinghouse of information on Austin real estate. There, future homeowners can search the Austin MLS. Ki has worked with Austin buyers for over three years. He also provides up to date information on mortgage rate trends on his site.

Having the bank seize your home is nobody's idea of a good time. A word that was hardly part of the American vernacular two years ago, foreclosure is all too common these days. While the number of homes in some state of foreclosure is decreasing each month, the fact is that foreclosures across the country are up 19 percent from a year ago (RealtyTrac).

According to the Associated Press, one in every 385 homes received some sort of foreclosure-related notice in October. Foreclosure is a multi-step process that often begins with the loss of a job, includes several stages and can end with ruined credit. Banks repossessed over 77,000 homes last month, dramatically changing the lives of hundreds of thousands of people. What is harder to quantify is the ripple effect foreclosures have in not only devastating a single family, but also affecting an entire community.

A homeowner not only loses the house, but also all the money put into the house. The homeowner walks away from all the equity and any money spent on improvements. The tax liability and bad credit can linger for years after a foreclosure. Families can be uprooted and long-standing social ties can be broken. Emotions can run high and a person's self-esteem and sense of well being can be battered.

Then there is what can be called the "spillover effects" of foreclosure. Beyond the homeowner who lost a home, the property values of surrounding homes can be negatively affected. In the broader view, this can affect the local property tax base, which has far reaching implications for an entire city. Because the foreclosure can be drawn out, homes often remain empty for months. Empty or abandoned homes can fall into disrepair and even invite crime.

These are unusual times with the country still reeling from the Great Recession and perhaps unusual steps are needed to keep more struggling homeowners out of foreclosure. Both the Federal Reserve and the Treasury Department have enacted programs to get lenders to work with homeowners. Programs offering mediation before a bank can seize a property have helped in states like Nevada, where the foreclosure rate is the highest in the nation. (AP)

The recent decline in foreclosures is largely attributed to these measures by the government to encourage banks to work with homeowners before foreclosing. However, those efforts are only a drop in the bucket. The AP reported that about 650,000 borrowers, or 20 percent of those eligible, were taking part in temporary trial plans. The reality is that since the beginning of September, only about 1,700 loan modifications had been made permanent.

It's been reported that lenders are making efforts to delay foreclosure as they evaluate which borrowers might qualify for the government's loan modification program. Also, housing prices have started to climb again after three years of startling declines. This helps reduce the number of homeowners who owe more than their home is worth. As foreclosures remain at a crisis level, affecting a wide range of people, the Obama administration may need to push more lenders to take part in loan modification plans--for all our sakes.


Ki enjoys sharing his passion for Austin Texas real estate with future homebuyers. One way he distributes information in through his website, which offers a free search Austin MLS search. He lives and works in Austin, Texas. And writes on his blog about Austin real estate.

After an exceptionally hot, dry summer, the rain has finally come to Central Texas. Just how much rain will it take to alleviate the current drought conditions? Considering this is the worst drought Central Texas has experienced since the 1950s, the answer to that is difficult to quantify. Don't expect any let up in the current water restrictions.

According to the Lower Colorado River Authority, year to date the area rainfall is 8 to 12 inches below normal. However, this is the second year of lower than normal rainfall, making it closer to 16 to 20 inches below normal. There are five levels of drought, and a good portion of Travis County has been at the highest "exceptional" level for many months.

According to the Associated Press, drought conditions in Central Texas are improving, especially as the rain keeps coming. Williamson and Burnet Counties, and even parts of northern Travis County are now considered to be in a moderate drought. However, the southern half of Travis County and all of Hays County are now considered to be in a severe drought, upgraded from exceptional drought. Just in the last year of this two year drought, it is estimated that the drought has caused more than $3.6 billion in crop and livestock losses.

What isn't changing significantly, even with all the recent rain, are the lake levels. The National Weather Service says it will take "several periods of sustained heavy, soaking rains to begin refilling lakes Buchanan and Travis." While that kind of rainfall gets the lake levels and local water supplies back to where they are supposed to be, it brings other consequences as well. Just ask Atlanta what it's like to go from drought conditions to catastrophic flooding.

From the drought in Texas to the floods in Georgia, it's difficult these days to find a part of the country not experiencing some kind of unusual weather. According to the National Weather Service, September saw above-average temperatures for most of the country. That is hardly the case in October, as Colorado to Minnesota are seeing early snow. There is more heavy rain forecasted in the south, something places like Atlanta doesn't need. California has gone from wildfires to the danger of mudslides as that state braces for storms. And, then there is a heat wave in Florida.

Much of this crazy weather from coast to coast can be attributed to the climate phenomenon known as El Niño, which affects weather patterns around the globe. According to the National Oceanic and Atmospheric Administration, we are in the midst of an El Niño pattern that will have both a positive and negative impact for the next several months. On the positive side, the hurricane season has been milder and the dry southwest will get some much needed rain. "El Niño's negative impacts have included damaging winter storms in California and increased storminess across the southern United States." Starting to sound familiar, isn't it?


Ki graduated from college in Austin, and couldn't leave. He created a website to provide information on the Austin real estate market to future buyers. Anyone can search for homes in the Austin MLS on his site. His site also provides a search for Austin commercial real estate.

This is the conundrum of doing good things for the environment: How do you embrace green energy without the old technology providers becoming broke and obsolete in the process? That is the dilemma faced by the City of Austin and Austin Energy as they try to promote solar energy.

Austin Energy began an initiative to increase solar power in the community by offering rebates for installing solar roof-top panels. It is one of the largest solar rebate programs in the country and has provided more than $18 million in solar rebates since 2004. It has been so successful, in fact, that the program had to be revamped recently to accommodate the volume of customers who want to take advantage of the solar rebates. The 400 applications received so far this year far exceed the Austin Energy budget for the program.

Now Austin Mayor Lee Leffingwell has proposed a new program called "Energize Austin" to provide solar power to more people in the community. The program would offer low-interest loans to allow people to install solar arrays on the roof of their home. A large enough solar panel system could essentially eliminate electricity bills, and greatly reduce the income for electricity providers like Austin Energy.

A solar array works through photovoltaic technology that turns sunlight directly into electricity. An average customer can get 10 -40 percent of their electricity through solar panels on the roof. Austin Energy also offers "net billing" meaning that customers using solar energy can get credit for the times the solar panel produces more energy than a home consumes. Solar panels are easy to maintain and can be easily upgraded to larger systems from the existing system.

According to Austin Energy, the whole community benefits from solar power because it is a clean, quiet, renewable energy that reduces the need for energy made from fossil fuels, like coal and oil. It offers a cleaner, healthier environment, as well as creates economic opportunities. For example, due to the success of the solar rebate program, Austin Energy went from using four installers to 24.

But with the City now proposing to loan customers the money for the cost of installing a solar array, something the rebate program did not do,
Austin Energy is concerned that solar energy use in Austin could expand too quickly. According to the Austin-American Statesman, Austin Energy General Manager Roger Duncan says "the city could have trouble maintaining its grid unless it comes up with a new business model for the utility." Austin Energy is using a 10 year plan for the rebate program to allow for the price of the technology to become more competitive.

Austin is probably not unique in this green dilemma. Berkeley, CA came up with the loan idea that Leffingwell is now proposing for Austin, however solar advocates say it did not dramatically change solar use in Berkeley. Austin Energy should be commended for its many green initiatives, not just the solar rebate program. The hope is that there is a way forward to improving the environment without everyone, including the companies that have provided services for decades, having to pay too high of a price.


Ki lives in the Austin area, where he enjoys biking the hill country. His website compiles information on Austin Texas real estate. His site has a graphical search of the Austin MLS along with a statistics blog on Austin real estate.

The fact is that the financial meltdown, now widely known as the Great Recession, started on Wall Street. It is also a fact that the meltdown quickly reverberated off the pavement of Main Street in the form of foreclosures and job losses. These things are clear. What is harder to understand is why so many on Wall Street continue to prosper while Main Street is still in shambles.

Perhaps the most blaring of the Wall Street bling is what has become the hated catch-phrase of this recession: executive compensation. While there have been rumblings and rumors of this from day one of the financial meltdown, reports came out in October that the executives of the top seven banks receiving government bailout money would also be receiving billions in bonuses. Big bonuses to the Wall Street elite is not new news, a fact Time magazine recently pointed with an article on the long history of executive pay.

In the 1890s, banker J.P. Morgan made 20 times what the average worker earned. By 1991, CEOs were earning 140 times what the little guy made. The trajectory of executive pay continues to rise, with an average S&P 500 top executive in 2007 earning in just three measly hours what a minimum-wage worker made in a year. Believe it or not, Plato recommended that top earning individuals in a society should never make more than five times what the lowest earner was paid.

Why do these executives get paid so much? If you ask them, they deserve every penny because their prosperity is necessary for everyone else to prosper, too. Goldman Sachs international chairman recently said, "We have to tolerate the inequality as a way to achieve greater prosperity for all." The research to back these claims has so far been mixed. However, there is some empirical evidence that Wall Street pay has reached a level that no longer supports the prosperity-for-all claims.

The recession certainly seems to bear that data out. The indignant uproar over executive compensation at companies that received bailout money has led to the appointment of a "pay czar." Treasury Department official Kenneth Feinberg has been commissioned with reining in the pay of the top 25 executives at each of the seven financial companies receiving the largest portion of bailout funds.

The pay czar proposes to cut salaries and bonuses of those top executives in half, capping salaries at $500,000 and bonuses at $25,000. The hope is that limiting the compensation will in turn limit the amount of risks financial executives are willing to take. The Federal Reserve plans to take limiting risky banking even further. According to the Associated Press, the Fed proposes to monitor executive pay at thousands of banks, even those that didn't receive a dime of bailout funds.

The reality is that Wall Street will always make considerably more than the average (and even the not-so-average) Joe on Main Street. The argument can be made that these are very talented financial wizards who do more good than Main Street realizes. However, the Great Recession offers a powerful counter argument about too much pay and a cautionary tale about taking too much risk.


Ki lives in Austin Texas and works in the Austin real estate market. His site has a search for listings in the Austin MLS. He also has information on mortgage interest rates and general information on Austin real estate

The Great Recession is not the great American equalizer after all. It's been widely reported recently that this recession hit middle and low income families the hardest, while the wealthy have continued to prosper. It may be chic to save and everyone brags about coupon clipping, but the idea that "we are all in this together" may not actually be the case.

According to the Associated Press, incomes have declined across all demographics, but at a greater percentage for middle and lower income groups. "Median income fell last year from $52,163 to $50,303, wiping out a decade's worth of gains to hit the lowest level since 1997." In fact, the gap between the rich and the poor has widened to the point that the wealthiest ten percent of Americans earned 11.4 times those below the poverty line earning $12,000 a year. Previously, the highest earning difference was 11.22 times higher in 2003.

The unemployment rate stands at a thirty year high of 9.7 and a great majority of those job losses have been lower income ones, particularly in construction and manufacturing. While wealthier Americans have had reductions in executive pay, far more of the middle and lower income earners have lost their jobs. This disparity between the rich and the poor is more pronounced in larger cities, like Atlanta, New York and Chicago.

The recession seems to be coming to a close with signs that the economy is finally growing. The Commerce Department reported that the economy shrank less than expected, with gross domestic product dipping just 0.7 percent from April to June, after dropping 6.4 percent in the first quarter of the year (AP). Measuring the value of all goods and services, the GPD is a good barometer of the health of the economy.

The better than anticipated numbers are attributed to businesses and consumers spending more than expected. The better news is largely credited to the government's $787 billion stimulus package and programs like Cash for Clunkers. What is not expected to improve anytime soon is the unemployment rate, which analysts believe will reach 10 percent by the end of the year.

As hiring in most sectors remains stagnate and layoffs continue, the gap between the haves and have-nots is likely to widen. Congress is considering ways to regulate executive pay and this along with The Great Recession is not the great American equalizer after all. It's been widely reported recently that this recession hit middle and low income families the hardest, while the wealthy have continued to prosper. It may be chic to save and everyone brags about coupon clipping, but the idea that "we are all in this together" may not actually be the case.

According to the Associated Press, incomes have declined across all demographics, but at a greater percentage for middle and lower income groups. "Median income fell last year from $52,163 to $50,303, wiping out a decade's worth of gains to hit the lowest level since 1997." In fact, the gap between the rich and the poor has widened to the point that the wealthiest ten percent of Americans earned 11.4 times those below the poverty line earning $12,000 a year.

The unemployment rate stands at a thirty year high of 9.7 and a great majority of those job losses have been lower income ones, particularly in construction and manufacturing. While wealthier Americans have had reductions in executive pay, far more of the middle and lower income earners have lost their jobs. This disparity between the rich and the poor is more pronounced in larger cities, like Atlanta, New York and Chicago.

The recession seems to be coming to a close with signs that the economy is finally growing. The Commerce Department reported that the economy shrank less than expected, with gross domestic product dipping just 0.7 percent from April to June, after dropping 6.4 percent in the first quarter of the year (AP). Measuring the value of all goods and services, the GPD is a good barometer of the health of the economy.

The better than anticipated numbers are attributed to businesses and consumers spending more than expected. The better news is largely credited to the government's $787 billion stimulus package and programs like Cash for Clunkers. What is not expected to improve anytime soon is the unemployment rate, which analysts believe will reach 10 percent by the end of the year.

As hiring in most sectors remains stagnate and layoffs continue, the gap between the haves and have-nots is likely to widen. Congress considering ways to regulate executive pay along with President Obama suggesting higher taxes on the wealthy as one the ways to pay for health care reform, the resentment between the two ends of the income spectrum may also increase. While the Great Recession is the worst state the economy has been in since the Great Depression, some Americans are faring better than others.


Ki's real estate business is based in Austin, Texas. His website gives comprehensive information on Austin real estate. His website provides future home buyers with a free search of homes in the Austin MLS along with a blog with statistics and commentary on Austin Texas real estate.

Austin is one of 79 metro areas across the country to be officially out of the recession, according to Moody's. Although the state of Texas is still considered to be suffering the constraints of the recession, Austin and seven other Texas cities have been given the all clear. This determination was based on an index that included employment, housing starts and home prices.

In fact, the latest poll of economist says that at least 80 percent of them agree that the recession is over. Unfortunately that piece of good news may not mean whole lot as the American economic landscape looks completely different than it did two years ago. The survey by the National Association for Business Economics released recently said to expect a slow recovery. Here are some reasons the recession recovery may be slow:

Unemployment
There seems to be little doubt that the unemployment rate, which is currently 9.8 percent, will reach 10 percent by the first part of next year. Even with the number of new jobless claims down for the fourth week in the last five, layoffs continue. Federal Reserve Chairman Ben Bernanke has warned that unemployment is likely to remain above nine percent through 2010.

Consumer Spending
Worries over unemployment affect consumer spending habits, even of those Americans who have jobs and job security. The personal saving rate is up for the first time in two decades and the cautious spending that began during the height of the recession has not changed appreciably in recent months. For example, when gas prices hit the $4 per gallon mark in the summer of 2008, people significantly changed driving habits. The annual American Community Survey showed that the numbers of Americans commuting to work, a habit stared during the high gas prices, remains the highest number in more than a decade. People are generally not eating out as much or making as many big purchases. It remains to be seen if holiday spending this season will help revive the suffering retail sector.

Real Estate
The economists surveyed expect housing in 2010 to contribute to the overall growth of the economy for the first time since 2005. However, the census data shows that less people are moving these days, with population trends to the sunbelt states actually being reversed. Real Estate prices nationwide are down and the percentage of Americans owning homes dropped to 66.6 percent this year from the high of 67.3 percent in 2006.

Credit
Even with the Dow Jones industrial going over 10,000 and banks reporting billion dollars profits, credit remains tight. A recent report from the Federal Reserve shows that households have reduced their borrowing for the seventh straight month, while at the same times banks are lowering credit limits. Banks seem to be enemy number one when it comes to this recession, yet they have to play an integral part in the recovery. Until credit for both businesses and individuals starts flowing again, employment and housing is likely to remain stagnant.


Ki lives, and works, in Austin, Texas. His site provides potential homebuyers a free search of the Austin MLS. He also provides detailed information about Austin real estate on this site along with profiles of neighborhoods like Westminster Glen in central Austin.

One of the reasons given over and over for the slow recovery from this recession is the amount of debt so many Americans are buried under. The soaring house values of just two years ago made people feel rich and the financial future looked promising. The future look so promising, in fact, that people spent well beyond their means. It is estimated that personal debt has more than doubled in the last ten years to an average $10,000 per American household.

The crash in home values and the sudden rise in layoffs nationwide left many Americans overextended on their home equity loans and credit cards.
With no easy means to pay off their personal debt, many people are turning to credit relief companies for help. While there are many reputable companies out there offering a wide range of debt elimination services, there are even more debt relief scams. Type "debt relief" into any search engine and a plethora of companies pop up, some of which are legitimate and others who will take a clients money and leave them further in debt. The Federal Trade Commission is investigating dozens of companies who have put people further in debt in the process of "helping" them.

There are several options when it comes to getting out of debt and it is a good idea to do research and know the lingo. There is a big difference between a debt settlement and debt consolidation, for example. A debt settlement company will help a consumer make a one-time payment to clear debts, usually for less than what is actually owed. However, these companies charge a hefty fee and while credit reports will show $0 balances after a debt settlement, it will also show any delinquency history.

Debt consolidation can be done with the help of a credit counselor or pursued without the help of a debt relief service. A legitimate credit counselor will sit down with a consumer and help him craft a realistic debt elimination program, usually giving a 3-5 year window for paying down all debt. Debt consolidation is the process of paying off higher interest balances, like those of a credit card, with a lower interest loan, typically from a bank. With the difficulties consumers are facing get loans these days, it may be helpful to go through a service to help with the consolidation process.

Bankruptcy is a route taken by more and more Americans, but really no one wins in this situation: creditors don't get paid and the consumer's credit is ruined. Bankruptcy is a legal process that clears all debts without having to pay them off, but of course, there are legal fees to be considered. It should be considered the last resort alternative. The best way to start digging out from debt is to take a realistic look at spending habits and set a reasonable budget. Before turning to a debt relief service it's a very good idea to check a company's reputation with both the Federal Trade Commission and the local Better Business Bureau.


Ki enjoys living in Austin Texas for the different local restaurants and the hill country. His site is devoted to Austin real estate. It encourages future buyers to search listings on the Austin MLS. His site also has general information on the Austin real estate market along with graphs showing historical mortgage rates.

It is hard to believe just two years ago in October the Dow Jones industrial set a record high of 14,164. According to the Associated Press, just one year after that it was at 8,451 in mid October 2008. Today the Dow is around 9,800. Stocks have rallied recently on signs that retail sales are improving. The last two years have been a bumpy ride.

The AP recently broke down the economic numbers, putting into perspective just where the U.S. economy stands today. "The panic of last fall has been replaced by the resignation that the worst is over but it might be years before the economy booms again." It seems for every gain there is something else to put in the loss column. For example, while the stock market is steadily gaining ground, the total losses in the stock market from the peak of October 2007 to the bottom of March 2009 was a mind-boggling $11.2 trillion.

A positive sign is that after steadily declining for fourteen months, retail sales increased 2.7 percent in August. But the unemployment rate in October 2008 was 6.2 percent and today it is 9.8 percent. Consumer confidence, which is measured on a scale of 1 to 100, was at a record low of 25.3 last October and this month it is 53.1. To put these numbers in perspective, two years ago consumer confidence stood at 95.2.

Some oddly positive side effects of the Great Recession have been the increase in personal savings rate from 0.5 percent in 2005, when home prices were soaring, to 6.9 percent in May 2009. Also, credit card debt held by Americans last September was a staggering $975 billion. That number is down 8 percent now to $899 billion.

To put the housing numbers in perspective, 2005 was a record year with 7 million home resales. January 2009 the annual rate of home resales was 4.5 million, but rose to 5.1 million in August. On the other hand, the median price of homes sold in 2006 was a record high $245,000. The median price of homes sold last October was $213,000 and dipped to $195,000 in August.

Some other signs of the time: Starbucks launched an instant coffee product in September. PepsiCo Inc announced recently that it will continue to offer and develop products with price in mind, feeling customers will continue to be price-conscious even after the recession ends. Retailers will need to stay creative to entice shoppers this holiday season amid rising unemployment. Wall Street may be seeing a smoother path to recovery, but it's still a bumpy ride on Main Street.


Ki works in Austin real estate. He works to help buyers find the perfect property. His website provides general information on Austin real estate. It also allows buyers to search for homes in the Austin MLS along with providing a free mortgage calculator.

Now that long hot summer is over, it's time to reset the thermostat. While there are still plenty of warm days ahead--one of the great things about living in Austin--we hopefully won't be breaking any heat records. Cooler weather means resetting the thermostat, which saves both energy and money.

According to the Earth Day Network, half of most household's energy costs go towards heating and cooling. "The good news is that means you have lots of room for improvement, and even small changes make dramatic improvements in household fuel efficiency." Some of the small things are cleaning vents and replacing air filters, which can save as much as ten percent of heating and cooling energy.

Setting the thermostat just two degrees higher can significantly reduce cooling bills and save energy. Buying a programmable thermostat is also a good idea. Austin Energy even has a Power Partners program, which provides a free programmable thermostat along with installation. The participants in the program agree to coordinate cycling of their air conditioner. For example, the AC would be cycled off between 3 p.m. and 7 p.m. when demand for electricity is highest. Cycling helps keep the demand for electricity level, which saves the city and the individual money.

Another surprising drain on household energy is the refrigerator, particularly if it is an older model. Austin Energy offers cash incentives for turning in old refrigerators, as much as $50, and they will properly dispose of the old one. On average, the refrigerator uses 10 to 15 percent of a household's electricity each month, even more if there is one in the garage as well. Setting the thermostat lower, cleaning the coils and making sure the refrigerator is not placed in a warm area can all help to reduce the amount of energy it uses.

The refrigerator is not the only household appliance that can help reduce energy expenses. Turning the setting down on hot water heaters and insulating the pipes can make a substantial difference in the energy used. Try running the dishwasher and clothes washer with full loads only. Using cooler water settings when possible and letting some things air-dry are also little acts with big returns.

A household energy audit is not a bad idea either. Austin Energy has qualified professionals, but a quick perusal of the web shows that there are many companies out there providing this service. The couple hundred dollars spent on the audit is very likely to be made back with the suggested home energy improvements. Austin Energy even offers free improvements to low-income customers with services like attic insulation, duct repair, caulking and solar screens. These are things that an intrepid homeowner could do on his or her own, as well. Remember, little things can make a big difference.



Ki lives in Austin Texas. He started working with Austin real estate after graduating from UT. He maintains a website where potential buyers search Austin MLS listings. His site also has detailed information on Austin real estate and the neighboring city of Pflugerville.

There were some expectations that mortgage rates would fall this week. Instead rates not only did not rise but fell slightly this week. The 30 year rate fell from 5.08 to 5.07 hitting a new low for the summer. The 15 year rate fell from 4.54 to 4.50. The 5 year arm fell from 4.59 to 4.51 while the 1 year arm rose slightly from 4.62 to 4.64.

The continuing fall of the 30 year rate is good news for the national real estate market which is in the midst of a lukewarm recovery. The 5 year arm is seeing more activity now that it is significantly lower than the 30 year arm. Personally I still would heavily favor the 30 year arm with the possibility of seeing double digit interest rates in 5 years because of heavy government spending. The 1 year arm since moving above the 5 year arm has moved into no mans land with there being virtually no reason to get a 1 year arm at this point in time. Below are rates for the last few weeks.

Sep 10, 2009
30-yr 5.07 15-yr 4.50 5-yr ARM 4.51 1-yr ARM 4.64

Sep 03, 2009
30-yr 5.08 15-yr 4.54 5-yr ARM 4.59 1-yr ARM 4.62

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Aug 20, 2009
30-yr 5.12 15-yr 4.56 5-yr ARM 4.57 1-yr ARM 4.69

Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72

Feb 05, 2009
30-yr 5.25 15-yr 4.92 5-yr ARM 5.26 1-yr ARM 4.92

In addition to rates we like to look at actual mortgage payments to gain some more perspective on mortgage rate changes. Based on current mortgage rates we determined the mortgage payment for a 200k loan. We did the same thing with rates from 2 weeks ago and rates from 6 months ago.

Sep 10
30-yr $1082.21
15-yr $1529.98
5-yr ARM $1014.55
1-yr ARM $1030.07

Aug 27
30-yr $1090.82
15-yr $1538.17
5-yr ARM $1033.67
1-yr ARM $1036.07

Jan 29
30-yr $1085.89
15-yr $1560.82
5-yr ARM $1106.88
1-yr ARM $1061.45

Compared to 6 months ago the mortgage payment on a 200k loan is pretty much identical. The payment is $3.68 less a month or a third of one percent.

The real question of course is where mortgage rates are going. There are a few schools of thought. The first is that mortgage rates are going to skyrocket along with inflation caused by the massive government spending over the last few years. There is another school of that that mortgage rates should rise but only slightly and that massive inflation will be curbed by the Federal Reserve.

Either way no one is advocating that mortgage rates are going to fall much further. Therefore my advice would be to look at 30 year rates and to avoid 5 and 1 year arms like the plague. If the first school of thought is correct and mortgage rates rise they will probably not move dramatically until the economy recovers.

Ki lives in Austin Texas. He site has a graph showing historical mortgage rates. His site also has news and resources on real estate in Austin as well as a search of the Austin MLS.

In March of this year, the Obama Administration authorized a new federal program to help stabilize the housing industry. The feds poured a mere $75 billion into the Making Home Affordable (MHA) mortgage program intended to avert further foreclosures, assist responsible home owners in retaining their homes and stabilize the nation's communities.

Home Affordable Refinancing Program (HARP) and Home Affordable Modification Program (HAMP) are the two initiatives under the umbrella of the MHA that are being used to distribute the funding for the program. The programs fall under the U.S. Department of Housing and Urban Development (HUD) secondary mortgage market lenders, Fannie Mae and Freddie Mac. Through the MHA programs, certain homeowners are provided assistance whose loans are either owned or guaranteed by Fannie Mae and Freddie Mac.

Over the following three years, the program is on target to assist three to four million homeowners. Currently, over 230,000 trial modifications have been started; although, over 500,000 is the goal to have in process by November 1, 2009. What's interesting is that more than 85 percent of mortgage loans out there today are covered by participating service providers.

HARP assists homeowners who are current on their mortgage payments, but are not able to refinance their loans due to a decrease in their home's market value. Homeowners may be afforded the opportunity to refinance their mortgage to a lower interest rate and to a lower-risk loan solution, both of which are part of the program.

General requirements to be eligible for HARP are as follows:

* Must be the owner of a one- to four-unit home
* Mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac
* Must be current on mortgage payments throughout the previous 12 months, which means that you've not been more than 30 days late on any mortgage payment within the previous year
* Amount due on your first mortgage is not more than 125 percent of the current market value of your home

HAMP offers options for homeowners that may potentially reduce their monthly mortgage payments, or provide other alternatives that can assist them in keeping their homes. The program helps homeowners who are in the following situations with their mortgage:

* Current, but have experienced recent significant hardship, including hardship that will inhibit their ability to pay mortgage payments going forward
* Delinquent on their mortgage payments
* Currently in the foreclosure process

For full details regarding the MHA, visit the MHA website.

Both sites offer a self-service lookup tool that tells you whether your home loan is owned by either. To find out more about the Fannie Mae or Freddie Mac MHA programs, or to see if your home loan is owned by either, see the information below:

* Fannie Mae
* Phone - (800) 7FANNIE (Hours - 8am to 8pm EST)
* Freddie Mac
* Phone - (800) FREDDIE (Hours - 8am to 8pm EST)

Ki's website includes a searchable map of homes in the Austin MLS. His site is focused on helping Austin real estate buyers. In addition to information on the Austin market, his site also provides a mortgage widget that shows current interest rates.

For the most part mortgage rates held steady this week after dropping sharply last week. The 30 year rate rose slightly from 5.12 to 5.14 after dropping from 5.29 the week before. The 15 year rate rose from 4.56 to 4.58. The 1 year arm held steady at 4.69 and the 5 year rate (the only mortgage product that saw much movement) rose from 4.57 to 4.67.

The general consensus is still that rates are going to eventual move up rapidly when the economy recovers. As long as the economy stay in the doldrums there is a decent chance rates will stay below 5.5. To put today's rates in historical context the all time low for the 30 year rate is 4.81 (reached in April 2009). So the 30 year rate is still very close to its all time low. Below are mortgage rates for the major mortgage products for the last few weeks and from January 22 (6 months ago).

Aug 27, 2009
30-yr 5.14 15-yr 4.58 5-yr ARM 4.67 1-yr ARM 4.69

Aug 20, 2009
30-yr 5.12 15-yr 4.56 5-yr ARM 4.57 1-yr ARM 4.69

Aug 13, 2009
30-yr 5.29 15-yr 4.68 5-yr ARM 4.75 1-yr ARM 4.72

Aug 06, 2009
30-yr 5.22 15-yr 4.63 5-yr ARM 4.73 1-yr ARM 4.78

Jul 30, 2009
30-yr 5.25 15-yr 4.69 5-yr ARM 4.75 1-yr ARM 4.80

Jan 22, 2009
30-yr 5.04 15-yr 5.12 5-yr ARM 4.80 1-yr ARM 5.24

For the most part mortgage rates have stayed low in spite of some encouraging signs with the economy. In addition to rates we can also look at mortgage payments. We took today's rates and translated them into a mortgage payment for a 200k loan. We also translated rates from August 13th (2 weeks ago) and January 22 (6 months ago) into a mortgage for a 200k loan.

Aug 27
30-yr $1090.82
15-yr $1538.17
5-yr ARM $1033.67
1-yr ARM $1036.07

Aug 13
30-yr $1109.36
15-yr $1548.44
5-yr ARM $1043.29
1-yr ARM $1039.68

Jan 22
30-yr $1078.53
15-yr $1594.11
5-yr ARM $1049.33
1-yr ARM $1103.16

As we saw with mortgage rates the mortgage payments are relatively stable from 2 weeks ago.

So what do we expect over the next few months? As long as the economy stays down barring other developments in the financial sector mortgage rates should stay low. When the economy starts to rebound though mortgage rates are generally expected to start rising.

What is our advice to people considering getting a loan? Basically it's the same as it has been for the last few months. I would avoid getting a 5 or 1 year arm if at all possible. Since rates should be higher in the future it makes sense to lock into long term rates while they are low. It's also a good idea to start the loan process before starting your home search. We are still in one of the strictest lending environments we have seen in decades. Minor credit issues that were ignored before are stopping loans from going through today. Starting the loan process early on can give a potential borrower time to clear up any issues on their credit report.


Ki has a comprehensive website focusing on Austin Tx real estate. Buyers can use it to search the Austin MLS. It also provides a graph showing updated mortgage interest rates.

From sea to shining sea, lenders struggle with costly mortgage fraud. Although, the fraud itself is not new, a recent FBI report reveals that the numbers are mounting and the methods used by scammers are becoming more, well, creative.

From 2007 to 2008, the FBI's annual report showed that the industry experienced an increase of more than 83.4 percent in actual mortgage fraud dollars. Last year mortgage fraud cost lenders in excess of $1.4 billion in liability, says the FBI report, and higher figures are expected for the 2009 fiscal year. Just through June of 2009, fraud figures exceeded the previous year during the same time period by around $208 million.

There were over 63,000 incidents reported by lenders regarding mortgage fraud in 2008, which was 33 percent more than reported in 2007. Increased reported incidents are partly attributed to more intense scrutiny of borrower details. Reporting inflated income in order to buy a larger home, or applying for modification under the pretense of a false job loss, have been identified as increased contributors to fraud more recently.

In the report, the FBI attributes much of the fraud to market insiders, which includes mortgage brokers, real estate agents and brokers, lenders, property appraisers, title companies, underwriters, accountants and others. Stating that insiders are attracted by the allure of low-risk, high-yield returns, the report does not expect the numbers of those involved in fraud to diminish. Due to the complexity of the mortgage process, industry insiders find ways to make a quick buck without drawing immediate attention.

Tighter lender requirements that are making it more difficult to obtain a mortgage are a contributor to the strained industry. In addition, many in the mortgage industry are no longer experiencing the benefits of the long gone real estate boom and turn to fraudulent methods to fill the gap in income.

Along with traditional methods, other major targets expected to be pursued by fraudsters are minorities and seniors struggling with foreclosure, along with federal economic stimulus programs. State-wide incidents in Florida reveal increased numbers of Hispanics being defrauded by Hispanics operating fraudulent companies under the pretense of financial and foreclosure assistance.

Federal programs operating under the Emergency Economic Stabilization Act (EESA) and the Housing and Economic Recovery Act (HERA) have opened the door to additional fraud opportunities, and are expected to become new targets for fraudsters.

California has revealed incidents of mortgage fraud perpetrated by organized crime and gang members. Along with new fraud methods, traditional modes are expected to increase and will be more closely monitored by the mortgage industry and law enforcement as communication methods become more enhanced.

The FBI is bracing itself for record high mortgage fraud. In attempts to get a handle on the mortgage fraud epidemic, the federal branch created the National Mortgage Fraud Team (NMFT). The FBI will use the team to further continue to partner and provide valuable information to the mortgage industry and law enforcement in order to capture and deter mortgage fraud perpetrators.

Ki provides a free search of Austin MLS listings on his website as a service provided for those curious about austin real estate. He has lived in Austin for over a decade. His site provides updated information on Austin real estate and mortgage rate trends

Innumerous lawsuits are filed in U.S. courts every year. Many are settled out of court for astronomical amounts, others do or don't award the plaintiff at the end of the trial and still others are dismissed for lack of evidence. Making the top five of those filed against U.S. companies are as follows:

1. Labor/Unemployment - One of the precipitators to this is the escalation of layoff numbers over the past several years. The national unemployment rate climbed to 8.1% in February of this year, the highest it's been since 1984. This does not include the mass of individuals who have been laid off beyond the ability to receive unemployment. The layoff of high-level executives is not beyond the pale, either, which has sparked many of the lawsuits against companies today. The predominant lawsuits under this category, however, are wage and hour claims, discrimination (including age-related cases) and wrongful termination.

2. Contracts - Breach of contract lawsuits can be filed against companies when they do not fulfill their contractual obligations. Maybe the company did not deliver a product, or did not complete a service or did not fulfill something expressly documented in a signed contract you had with the company. In any situation where obligations of a contract are not fulfilled, a lawsuit may be the only way to resolve the dispute. These are particularly common in the services industry. Ralph the roofer committed to replace your entire roof for a specific amount of money to be paid upon completion. You paid Ralph upon the completion of the job. What you found out during the first rain, however, is that Ralph and his crew did a shoddy job. Ralph is elusive and non-responsive to your calls, so you hire another company to redo the job. You sue Ralph in attempts to collect your money back from him and his company. He breached the contract. He did not fulfill his contractual obligations.

3. Personal injury - There are innumerous frivolous lawsuits that occur in this category. Someone sees an opportunity to make some quick cash. They plan and execute a fake fall in the presence of witnesses, file a lawsuit and sometimes win hundreds of thousands of dollars in compensation. Companies have wised up to these incidents and many of them have monitoring equipment in place to capture the fraudsters on camera. This has been a great deterrent in litigation for these types of cases. There are legitimate incidents, however, where the company is directly at fault. To collect punitive damages, though, the plaintiff has to not only prove gross negligence, but also malicious intent.

4. Product Liability - You've probably heard about all the problems experienced a few months ago with the toys imported from China. Lead based paint was one of the primary concerns. Mattel had to issue a recall on several of the toys. Less than one month later, unfortunately, Mattel had to issue another recall. Liability lawsuits started rolling in. Mattel doled out $12 million to settle with 39 states to pay for damages caused by the tainted toys.

5. Intellectual Property (IP)/Patents - The most common types of IP are trade secrets, industrial design rights, patents, copyrights and trademarks. A disgruntled employee decides to sell trade secrets to a competitor after being laid off or fired. A successful salesperson takes his customer list with him when he leaves the company and uses it to when selling similar services for another company. An IT technician develops a product that uses his former employer's proprietary technology as the product's foundation. These are all examples of violating IP/patent laws that result in IP/patent lawsuits.

Ki developed a website that acts as a resource on Austin real estate. On the site, buyers can search Austin MLS listings. In addition to the Austin real estate market his site also provides a few free mortgage calculators

There is a provision in the Housing and Economic Recovery Act of 2008 that allows first time home buyers the ability to receive a credit on their taxes of up to $7,500 for purchasing a home. There is also a provision in the American Recovery and Reinvestment Act of 2009 that expands this tax credit for qualified first time home owners. The provision is called the first-time homebuyer credit.

The 2008 first-time homebuyer credit was created to infuse the slumping housing market, and is treated like an interest-free loan. Qualified participants were required to repay the loan interest-free over a period of 15 years, making 15 equal annual payments. You can find more details about this tax credit on the IRS website.

The provision in the American Recovery and Reinvestment Act of 2009 increased the first-time homebuyer tax credit to $8,000 for purchases made January 1 - November 30, 2009. In contrast to the 2008 tax credit, new home owners do not have to repay the credit as long as they do not sell their home within three years of closing on the home.

You need to be armed with the facts before you go to purchase a home on the assumption that you'll receive the credit. The following FAQs will help you navigate through the quagmire of confusion that has surrounded this tax credit.

* Who is eligible? Taxpayers who have not owned a home within the U.S. three years prior to purchasing a new or resale home in the United States. The closing and transfer of title on the home must be completed between April 9 and December 31, 2008 for the 2008 credit, and between January 1, 2009 and November 30, 2009 for the 2009 credit.

* What is the amount of credit? The credit allows for 10 percent of the purchase price. The maximum credit is $7,500 for 2008 and $8,000 for 2009.

* Are there income limits? Income limits are $75,000 for a single filer and $150,000 for a couple filing jointly. The IRS bases the credit on your modified adjusted gross income (MAGI). Your MAGI equals your adjusted gross income (AGI) plus IRA contribution deductions, foreign housing deductions, student loan deductions, higher education expense deductions and foreign income. Partial credit is available to some with higher MAGI.

* Does my home qualify? The home qualifies if it is the taxpayer's principal residence, is located within the U.S. and purchased between April 9, 2008 through July 1, 2009 for the 2008 tax credit, and January 1, 2008 through November 30, 2009 for the 2009 tax credit. For new construction, the date you actually occupy the residence will be considered the purchase date.

* What if I don't owe taxes or I'm exempt from filing? It doesn't matter. The credit applies to qualified applicants regardless of filing requirements, even to those who do not owe taxes or are exempt from filing. You may file solely to claim the first-time home buyer credit.

* How do I claim the credit? Although you are not required to claim the credit, you may do so by filing a Form 5405. You'll need to file the form with the applicable 2008 or 2009 federal income tax return.

* Does the tax credit act as a tax deduction? No. A tax deduction only diminishes the amount of income taxed. For instance, if the taxpayer's AGI is $40,000, then a deduction would reduce the amount taxed by $8,000, depending on the amount of applicable credit. The taxpayer would be taxed on the remaining amount of $32,000. Instead, the credit is directly deducted from what the taxpayer owes the government. If the taxpayer owes $2,000 to the IRS, then $6,000 would be the amount refunded to the taxpayer. If the taxpayer owes nothing, then the entire $8,000 would be refunded, depending on the applicable credit.

Ki has sold Austin real estate for almost 10 years. He works with a variety of buyers. His website offers listings directly from the Austin MLS. His site also has general information on Austin real estate and a mortgage widget to keep up to do on current trends with mortgage rates.

The neighborhood of Brentwood in north central Austin was originally a cotton farm until about 75 years ago, when the City of Austin annexed the land and land was purchased to build a school, Brentwood Elementary, which opened in the early 1950s. Brentwood is the name used to refer to the area of Austin between Lamar, Justin Lane, Burnet Road and 45th Street, and the school is in the middle of the neighborhood. There is also a tree-lined street called Arroyo Seco which runs through the middle of Brentwood and divides the neighborhood in half, forming what are jokingly referred to as Northern Brentwood and Baja Brentwood.

The median household size is smaller than average in Brentwood than most in Central Texas, at 1.9 people per household on average, and the demographics of the Brentwood neighborhood suggest a professional population of the age group most likely to be employed, with 45% of the residents being between the ages of 25 and 44; in addition, 50% of the homes in Brentwood are occupied by a single adult, many of whom are professionals in the high tech industry or U.T. grad students and professors.

There is a smaller percentage of school age children in Brentwood than most neighborhoods in Austin, and most of the residents of the neighborhood are slightly older than average, with 86% of the residents being over the age of eighteen, yet only 17% reporting being over the age of 65.

74% of the residents in Brentwood report Caucasian ancestry, with about 20% reporting ethnicity including both Hispanic and Caucasian roots, with the remaining population being comprised of a variety of ethnic backgrounds, so Brentwood has a fairly diverse population as well.
Students who attend school in Brentwood go to Brentwood Elementary, Lamar Middle School, or McCallum High School, and 95% of those who are employed in Brentwood work within Travis County. The median family income in Brentwood is around $47,000, and the residents are well-educated, with 57% having a college degree and 28% currently reporting working on their graduate degrees.

Since the University of Texas is in close proximity to the neighborhood, there are numerous housing opportunities for students, professionals, and young families, with a plethora of new condominium projects and apartment complexes as well as many single family homes. The average price of a home in Brentwood was about $170,000 in 2003, with the higher end of home prices being around $385,000. This is roughly about average for the Austin real estate market. Home values have risen dramatically in the area since the closure of Mueller Airport, since the flight paths of planes travelling to and from the field are no longer directly over the homes in the area, eliminating a great deal of the noise.

Brentwood is a very scenic area with a creek meandering through most of the neighborhood,along Arroyo Seco,and the neighborhood is known for old-fashioned hamburger joints and taverns, as well as the farmer's market, which has been in operation since 1947. At one point, the Stallion, Frisco Shop, and Threadgill's all offered a down-home chicken fried steak or juicy burger with home made fries in or very near the neighborhood, for a workingman's price.

There is a large, peaceful park in the neighborhood, Brentwood Park, which included nine acres of green space along with tennis courts, hike and bike trails, soccer fields, a baseball diamond and a playscape. There is also a festival called the Violet Crown Festival which is held on the lawn in Brentwood Park every year, and the neighborhood takes pride on its lights and decorations during the holiday season, especially on Arroyo Seco.

There are many churches and institutions, as well as city and state facilities in Brentwood, with choices of Faith Lutheran, Austin Bible, and Crestview Methodist Church for churchgoers, among many others, and some of the facilities in the neighborhood include the Texas School for the Blind, the Texas Department of Health, and the Austin Community Gardens, where residents can grow their own fresh produce.

For dining out, residents and visitors can choose between the Korea Garden, Fonda San Miguel, Phil's Icehouse, the Omelettry, and Jalisco, all of which are in or very near the Brentwood area, as are quite a few other restaurants and clubs, as well as fast food joints.

Brentwood offers something for everyone, and with its scenic beauty and history, yet urban, hip reputation, it is the perfect place to just visit or move in and settle down!


Ki works as a real estate agent in Austin Texas. His site is filled with information on the Austin real estate market. It also provides information on neighborhoods like Brentwood Austin along with a search of the Austin MLS.

There's an old television program that aired in the 1960's called Hogan's Heroes. Sgt. Schultz (John Banner) was one of the main characters. His constant exclamation throughout his tenure on this show was, "I know nothing!" Is that where you are in regards to how to buy a home without a down payment? If so, you are about to become educated.

Believe it or not, if you have decent credit - and sometimes even if you don't! - you have alternatives as to how to purchase a home without a down payment. Look at the following examples:

* VA Foreclosure Loans - What's unique about these loans is that anyone can buy a VA foreclosed home with no-money down. You can find VA foreclosures through local real estate listing agencies, typically members of Multiple Listing Service (MLS). You can also do a search on the Internet for VA home foreclosures. You'll find plenty. VA sells their own repossessed homes. If you are not a veteran or on active duty, however, you won't be able to get a VA loan. Instead, you'll be required to obtain your own conventional or FHA financing. Still, there is no down payment required.

* Owner Financing - owner agrees to be your mortgage holder. You reach an agreed-upon price with the property owner. A legally binding agreement is drawn up that includes everything a mortgage loan would include as far as price, duration of loan, interest rate and loan payments. The property owner accepts payments from you just like a bank or mortgage company would for a traditional loan. You are considered the owner of the home, since your name is on the title/deed, along with the mortgage holder as the lien holder.

* Assume a Mortgage - Some owners are having a very difficult time selling their homes due to the mortgage crisis. Many are willing to allow a buyer to assume their mortgage in order to get it sold. This allows them to get out of the mortgage to a certain extent and purchase another home. Of course, there are requirements that the buyer must meet before the mortgage company will allow the assumption. In order to assume a home loan you must qualify for the loan and pay closing costs.

* Lease/Purchase - This has been a popular one for years. You find property you are interested in not only renting, but buying. Sometimes property will be advertised as such. There are various approaches to this option.

* Owner agrees to accept all rent payments over a specified time period in exchange for a down payment. At the end of the specified time period you will have to obtain your own loan to pay for the remaining agreed-upon sale price of the property.

* Owner agrees to accept part of the rent payment over a specified time period in exchange for a down payment. At the end of the specified time period you will have to obtain your own loan for the remaining agree-upon sale price of the property.

* Owner agrees to lease the home to you at a discounted rate, and you agree to obtain a loan to buy the home at a specific price within a specific timeframe. The agreed upon price is typically more than if you were paying the market amount for rental.

Ki's real estate business is located in central Texas. His website provides future home buyers with a free graphical search of the Austin MLS. It gives comprehensive information on Austin real estate along with a free mortgage calculator.