My house is a little over 20 years old and my cooling system just hasn’t been up to snuff this year so I called a heating and cooling contractor to get it checked out. They told me my equipment would probably last a couple more years but was not nearly as efficient as the new stuff they’re making today. Given the state of the economy, and my own personal finances my first thought was to just let it go until I could afford it. Then the HVAC contractor mentioned some great incentives that are available this year:

1) The manufacturer (Carrier – http://www.residential.carrier.com/index.shtml ) was offering a $1,000 rebate on certain high efficiency furnaces and air conditioning systems
2) The IRS has a tax credit of up to $1,500 (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index ) for the purchase of certain high efficiency furnaces and air conditioning systems
3) The State of Michigan has a rebate incentive of up to $650 (www.michrebate.com )for the purchase of a new high efficiency furnace with a variable speed blower system

All told, I could save $3,150 by installing a new system this year. Wow!
We decided to go ahead and have the whole new system installed and all of the credits and rebates paid for nearly ½ of the total cost – incredible! The contractor we used – Sutton and Sons (248) 673-2224 – did a great job. They showed up on schedule, got the job done on time, cleaned up the mess, took the old equipment with them and showed us how the new system works. My house actually gets cold on a 90 degree day now and the system is so quiet you don’t even know it’s running. Because we installed a 95% efficient unit with a variable speed blower we should also see a difference in our utility bills. I couldn’t be any happier.

If you, or anyone you know has an older HVAC system in the home they own, or if they just bought a new house that needs a new system, there has never been a better time to upgrade. Most of these credits expire at the end of the year so get busy!

Written by:
Ken Mascia
248.644.1200
kmascia@primecapitalmortgage.com

I can’t speak for anybody else, but business is booming in my office right now! It’s a major twist since we have been slow to moderately slow for the past 18 months. We are financing people buying houses like crazy right now and some of that can certainly be attributed to the current home buyer tax credit. I sure hope that thing gets renewed! The bottom line is that it seems like the housing market has really picked up and that is great news for everyone in Southeastern Michigan! I am seeing buyers lose houses that have gotten multiple offers and that has not been typical for the past couple of years. Also, most homes are selling within a narrow range around the asking price of about 5% within our typical market area of Oakland, Macomb and Wayne Counties.
Continue reading ‘Michigan Mortgage Market Update – The Economy is a State of Mind’ »

The number of residential real estate sales increased last year compared with 2008 in Oakland, Wayne, Macomb and Livingston counties.

However, if foreclosure sales are taken out of the calculation, the number of sales decreased.

The median price for non-foreclosure sales showed a strong increase toward the end of the year but it still ended lower than 2008, according to year-end figures released by the Farmington Hills-based MLS Realcomp II Ltd.

“What we saw is that the consumers are showing some confidence in the local economy, enough confidence to actually go out and buy a home,” said Doug Hardy, president of Century 21 Today Inc., chairman of the Birmingham office of SKBK Sotheby’s International Inc. and president of Realcomp.

The total number of units sold in foreclosure and non-foreclosure sales in Oakland, Wayne, Macomb and Livingston counties showed a combined increase of 19.3 percent to 55,100 in 2009 compared to 46,200 in 2008.

However, that figure was held up by foreclosure sales.

Units sold in non-foreclosure sales decreased year-over-year with a total of 21,900 in the four counties, compared to 24,300 in 2008.

Likewise, the median sale price for non-foreclosure sales decreased in the four counties compared to 2008.

The average median sale price for 2009 decreased by 13.2 percent in Oakland County from $173,600 in 2008 to $150,700 in 2009.

In Wayne County, sale prices decreased by 1.1 percent to $85,900 in 2009 from $84,900 in 2008. Prices decreased by 15 percent in Macomb County to $110,400 in 2009 from $130,000 in 2008. And Livingston County showed a 14.1-percent decrease to $158,100 from $184,000 in 2008.

The only price increase was in the city of Detroit, with a 32 percent year-over-year increase to $15,400 from $11,600 in 2008.

One bright spot is that the number of non-foreclosure sales showed a dramatic increase compared to the same month in 2008 toward the end of the year.

For the four counties combined, there was a 23.3-percent increase in non-foreclosure unit sales in October, compared to 2008, followed by 63.2 and 63.3-percent increases in November and December.

Hardy said it is not typical to have increases toward the end of the year, and he attributed the increase to the new homebuyer tax credit — which had been scheduled to end in 2009, but was later extended — along with low interest rates and great value for homes.

“There’s probably no better time to buy a home when you consider the interest rates and the home prices,” he said.

By Daniel Duggan

There is a lot of misinformation going around about what the impact of a Short Sale is on your credit and whether you can get a new mortgage after short selling a home. Below are the current Guidelines for FHA, and Fannie Mae.
FHA has recently changed their rule so that if a short sale occurred and all of the borrowers payments were made on time (no late payments) then they may be eligible for a new mortgage as long as the short sale was due to extenuating circumstances and not to simply take advantage of market conditions (see below). As you can imagine, this may be difficult to demonstrate. Otherwise, if any payments were made late or you cannot demonstrate extenuating circumstances, then it is a 3 year period before new FHA financing can be considered.
Fannie Mae policy is pretty straight forward – It is a minimum of 2 years to re-establish credit after a short sale.
It is very difficult to predict how a short sale will affect an individual’s credit score because there are so many different factors involved; How good was the credit to begin with? How many house payments were made late? Did they pay all of their other bills on time? Etc, The short sale will most likely be reported as a settled account paid for less than the amount owed and will have a dramatic impact on credit score even under the best of circumstances.

Here is the excerpt straight from FHA:
Borrowers are not eligible for a new FHA- insured mortgage if they pursued a short sale agreement on his or her principal residence simply to
•take advantage of declining market conditions, and
• purchase at a reduced price a similar or superior property within a reasonable commuting distance.

Reference: For detailed information on converting existing principal residences into rental properties, see 4155.1 4.E.4.g

Borrowers Current at the time of Short Sale
Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage
•All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale, and
• All installment debt payments for the same time period were also made within the month due.

Borrowers in Default at the time of Short Sale
Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
Note: Borrowers who sold their property under FHA’s pre-foreclosure sale program are not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure sale.

This is Fannie Mae’s Guideline:
Preforeclosure Sale
A two-year period is required to re-establish credit, measured from the completion date.

Written by:
Ken Mascia
248.644.1200
kmascia@primecapitalmortgage.com

Credit scoring models are a mystery that boggles the mind. There is no way to know exactly how specific changes to your credit report will impact your credit score. We do know the factors that go into calculating the score – 1) Your payment histories 2) Number of accounts that have balances. 3) Proportion of balances to credit limit. 4) Length of time accounts have been opened. 5) Credit inquiries. 6) Collection Accounts and Public Records. You can read more about this in the articles I wrote entitled How to Get a Great Credit Score Part 1 and Part 2. The scoring models are updated occasionally and the changes cause different issues to play a bigger or smaller role in your score. Continue reading ‘How to Destroy Your Credit Score in One Easy Step!’ »

SKBK Sotheby’s International Realty is pleased to announce that Cindy Obron Kahn, has joined SKBK Sotheby’s International Realty.

Cindy Kahn has come to SKBK Sotheby’s with more than 8 years of real estate experience as the top agent at her previous company. Cindy is the former owner of Kiddlywinks, a children’s store in Birmingham MI for 15 Years. The community has benefited for decades by her dedication to local service. She has been honored to serve on many boards for community causes and organizations, such as the board of directors for the Children’s Leukemia Foundation of Michigan.

Cindy Kahn has long been recognized as a leader in the local real estate market. She has devoted 8+ years to offering her clients her unparalleled enthusiasm, finely-tuned skills of negotiation, and “Client-First” philosophy when representing their selling or buying interests. Kahn says ‘”SKBK Sotheby’s was a natural step in my quest to offer my clients the best marketing, tools and technology in the local market” says Cindy. She adds “My clients, without exception, welcomed my change to SKBK Sotheby’s and are truly excited about the exposure and marketing that SKBK offers.”

Douglas H. Hardy, MD, chairman of SKBK Sotheby’s, said “It was a pleasure to learn of Cindy’s interest in our company and it will be an honor to work with her.” Hardy adds “As the top agent she has chosen to move to SKBK Sotheby’s because it was a perfect evolution of her real estate career. Not only will she join the market leader in exclusive Birmingham and Bloomfield area properties but her clients will also benefit from the only Boutique brokerage that can offer seamless national and international exposure to her clients.”
SKBK Sotheby’s International Realty® has a long history of exceeding the expectations of the world’s most discerning buyers. Since the founding of the Sotheby’s auction house in 1744, the Sotheby’s name has earned distinction as a marketer of the world’s most valuable and prestigious possessions. The tools and techniques that Sotheby’s International Realty brokers have developed to successfully sell grand estates are equally effective for selling fine properties in all price ranges. SKBK Sotheby’s International Realty brokers have participated in many record-setting and historic real estate transactions.