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FORECLOSURE NUMBERS

The number of foreclosure filings fell 7% in November from October, according to a report from RealtyTrac this morning. November foreclosure filings fell to 259,085, the report said, or about one out of every 488 households. While the number was a decline from October, foreclosures were up 28% from November 2007. And the dip isn't likely to last. "There are several indications that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months," James Saccacio, RealtyTrac's CEO, said in a statement."The reduction is because Fannie Mae (FNM, news, msgs) and Freddie Mac (FRE, news, msgs) both announced moratoriums on foreclosures, while major lenders also put the brakes on foreclosure proceedings," RealtyTrac's vice president of marketing Rick Sharga said in a press release. "State moratoriums are also delaying the onset of foreclosures. But all that will only delay, not avoid them." Meanwhile, Freddie Mac said this morning that the 30-year fixed-rate mortgage fell to 5.47% last week, a four-and-a-half-year low. A year ago, the average rate was 6.11%. On March 25, 2004, it averaged 5.4%.

The Loan Everyone Is Talking About

THE LOAN
.. ZERO DOWN
.. 30 year fixed rate
.. LOW interest rate (often below conventional and FHA/VA rates)
.. NO mortgage insurance!
.. 6% allowable seller contributions
.. Upfront 2% "Guarantee fee" can be financed.
.. Closing costs and repairs can be financed without a raise in purchase price!

THE PROPERTY
.. 1 unit detached single family residence, warrantable condo, PUD, town home, or modular
.. Owner occupied purchases
.. Eligible areas can be found at: http://eligibility.sc.egov.usda.gov

THE BORROWER(S)
.. Full income and asset documentation
.. No minimum borrower contribution
.. No minimum cash reserves or funds seasoning
.. Credit score as determined by system
.. Non-traditional credit may be acceptable

There are income and area limitations. Call me to discuss.

THE BEST STORY EVER

ONE OF THE BEST STORIES I'VE EVER HEARD! As she stood in front of her 5th grade class on the very first day of school, she told the children an untruth. Like most teachers, she looked at her students and said that she loved them all the same. However, that was impossible, because there in the front row, slumped in his seat, was a little boy named Teddy Stoddard Mrs. Thompson had watched Teddy the year before and noticed that he did not play well with the other children, that his clothes were messy and that he constantly needed a bath. In addition, Teddy could be unpleasant. It got to the point where Mrs. Thompson would actually take delight in marking his papers with a broad red pen, making bold X's and then putting a big 'F' at the top of his papers. At the school where Mrs. Thompson taught, she was required to review each child's past records and she put Teddy's off until last. However, when she reviewed his file, she was in for a surprise. Teddy's first grade teacher wrote, 'Teddy is a bright child with a ready laugh. He does his work neatly and has good manners... He is a joy to be around..' His second grade teacher wrote, 'Teddy is an excellent student, well liked by his classmates, but he is troubled because his mother has a terminal illness and life at home must be a struggle.' His third grade teacher wrote, 'His mother's death has been hard on him. He tries to do his best, but his father doesn't show much interest, and his home life will soon affect him if some steps aren't taken.' Teddy's fourth grade teacher wrote, 'Teddy is withdrawn and doesn't show much interest in school. He doesn't have many friends and he sometimes sleeps in class.' By now, Mrs. Thompson realized the problem and she was ashamed of herself. She felt even worse when her students brought her Christmas presents, wrapped in beautiful ribbons and bright paper, except for Teddy's. His present was clumsily wrapped in the heavy, brown paper that he got from a grocery bag. Mrs. Thompson took pains to open it in the middle of the other presents. Some of the children started to laugh when sh e found a rhinestone bracelet with some of the stones missing, and a bottle that was one-quarter full of perfume. But she stifled the children's laughter when she exclaimed how pretty the bracelet was, putting it on, and dabbing some of the perfume on her wrist. Teddy Stoddard stayed after school that day just long enough to say, 'Mrs. Thompson, today you smelled just like my Mom used to.' After the children left, she cried for at least an hour. On that very day, she quit teaching reading, writing and arithmetic. Instead, she began to teach children. Mrs. Thompson paid particular attention to Teddy. As she worked with him, his mind seemed to come alive. The more she encouraged him, the faster he responded. By the end of the year, Teddy had become one of the smartest children in the class and, despi te her lie that she would love all the children the same, Teddy became one of her 'teacher's pets..' A year later, she found a note under her door, from Teddy, telling her that she was the best teacher he ever had in his whole life. Six years went by before she got another note from Teddy. He then wrote that he had finished high school, third in his class, and she was still the best teacher he ever had in life. Four years after tha t, she got another letter, saying that while things had been tough at times, he'd stayed in school, had stuck with it, and would soon graduate from college with the highest of honours. He assured Mrs. Thompson that she was still the best and favourite teacher he had ever had in his whole life. Then four more years passed and yet another letter came. This time he explained that after he got his bachelor's degree, he decided to go a little further. The letter explained that she was still the best and favourite teacher he ever had. But now his name was a little longer.... The letter was signed, Theodore F. Stoddard, MD. The story does not end there. You see, there was yet another letter that spring. Teddy said he had met this girl and was going to be married. He explained that his father had died a couple of years ago and he was wondering if Mrs. Thompson might agree to sit at the wedding in the place that was usually reserved for the mother of the groom. Of course, Mrs. Thompson did. And guess what? She wore that bracelet, the one with several rhinestones missing. Moreover, she made sure she was wearing the perfume that Teddy remembered his mother wearing on their last Christmas together. They hugged eac h other, and Dr. Stoddard whispered in Mrs. Thompson's ear, 'Thank y ou Mrs. Thompson for believing in me. Thank you so much for making me feel important and showing me that I could make a difference.' Mrs. Thompson, with tears in her eyes, whispered back. She said, 'Teddy, you have it all wrong. You were the one who taught me that I could make a difference. I didn't know how to teach until I met you.' (For you that don't know, Teddy Stoddard is the Doctor at Iowa Methodist in Des Moines that has the Stoddard Cancer Wing.) Warm someone's heart today. . . pass this along. I love this story so very m uch, I cry every time I read it. Just try to make a difference in someone's life today? tomorrow? just 'do it'. Random acts of kindness, I think they call it! 'Believe in Angels, then return the favor'

Veterans Loan News

NWREporter November 2008

According to the National Association of REALTORS®, the recent passage by the House of Representatives of the Veterans Construction and Extension Act of 2008 would benefit veterans across America who are homeowners as well as those who aspire to homeownership. Three provisions in the legislation are critical to help veterans during the current housing turmoil. H.R. 6832 would help more veterans who are homeowners refinance their loans into safer, more affordable loans back by the U.S. Department of Veterans Affairs (VA loans). This would benefit veterans who have fallen victim to risky subprime loans that will be unaffordable when their adjustable interest rate resets. Additionally, the legislation would make VA loan limit increases permanent, helping veterans who live in high-cost areas. The bill would also extend the VA's authority to offer adjustable rate mortgages to veterans. That measure would make homeownership more attainable for military families and personnel who often have to move more frequently that their civilian counterparts. Senate action is necessary to finalize H.R. 6832.

September 2008 Activity

Pending Sales Up 4.1 Percent From Year Ago, Total Inventory Unchanged

KIRKLAND, Wash. (Oct. 6, 2008) – Home sales around Western Washington during September rose 4.1 percent from a year ago, reversing a 19-month pattern of declines. Members of Northwest Multiple Listing Service reported 5,982 pending sales (offers made and accepted, but not yet closed), a gain of 234 transactions from a year ago. The totals cover 19 counties in the MLS service area.

NWMLS data show the last system-wide uptick in pending sales was February 2007 when members reported a 4.8 percent gain from the previous year.

In other key indicators of housing activity, Northwest MLS reported tightening inventory with a double-digit drop in the number of new listings added during September compared to 12 months ago, and total inventory at month end that matched year-ago numbers. Figures also show area-wide softening of prices compared to a year ago,

The median price for last month's closed sales of single family homes and condominiums (combined) was $295,000, a drop of 8.3 percent from a year-ago when the median price was $321,600. King County prices fell about 3.7 percent from a year ago, from $395,000 to $380,315. For the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap), the median price for last month's closed sales dropped from $349,950 to $324,000, a decline of 7.4 percent.

Brokers and lenders say the recent economic turmoil is taking a toll on activity, but also suggest negative news reports are keeping buyers on the fence and creating misunderstandings about the availability of home loans.

"Forget the news. Mortgage loans are readily available, at excellent rates and you can still get 97 percent loan to value," said Mike Welty of Liberty Financial Group in Bellevue. "There is a lot of flexibility in programs, qualification and opportunity," he emphasized, while acknowledging (with a chuckle), "Underwriting is tougher – you need a down payment and you need a job!"

REALTOR Dennis Brown, a residential and investment specialist at Windermere's Fauntleroy office, echoed Welty. "I'm loving FHA," he exclaimed, calling the largest mortgage insurer in the world "the answer to a lot of people's credit problems." Brown has used the program for first-home and move-up buyers, as well as with investors. "Investors use the program to buy everything from fixer-uppers to 4-unit buildings," he said. Among features Brown said his clients find to be most appealing about FHA loans are easy credit qualifications (typically one year of "clean credit"), low closing costs and low down payment requirements (as low as 3 percent of the purchase price).

In today's market the vast majority of buyers are first time buyers, move-up buyers, and investors, according to J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "These three groups of buyers are moving forward with the opportunities that exist thanks to low interest rates, increased affordability, and a strong selection of homes to choose from."

Buyers still have plenty of choices, according to NWMLS data. Members added 10,889 new listings of single family homes and condominiums to inventory during September – about 1,500 fewer than a year ago for a 12 percent drop. When added to existing inventory, the number of active listings at month end totaled 48,665, slightly fewer than the year-ago number of 48,969 listings.

"We are definitely starting to see more buyers that have been waiting months to get off the fence," said NWMLS director Mike Skahen, owner/broker of Lake & Company Real Estate, Inc. in Seattle. As for the dip in prices, he attributes that in part to limited availability of jumbo loans for high-end homes, "Not surprisingly, with fewer high priced homes selling, the median price would be lower," he noted. "I'm convinced that as the national financial crisis subsides and with Seattle's good economy, buyers who have been waiting for the bottom will return and wish they had bought now." Commenting on the relatively low sales numbers over the past year, he remarked, "There must be substantial pent-up demand."

"The latest NWMLS numbers validate what our agents report from the field -- sellers that are truly motivated to move are dropping their prices, and many buyers are recognizing the opportunity this creates," said Ron Sparks, managing vice president at Coldwell Banker Bain in Bellevue. Increases in pending sales are a "good indication that our market is adjusting to current buyer attitude and demand."

Sparks acknowledged price declines aren't particularly good news for sellers, but said most sellers can be thankful the drops are really quite modest compared to other markets, where prices have recently dropped 30 percent or more. "It's apparent that home prices, both locally and nationally, are becoming irresistible in some instances," he remarked. As a result, he noted markets such as San Diego, Los Angeles and Las Vegas are seeing the same increased buyer activity as our local market.

Erik Hand, president of Response Mortgage Services (John L. Scott's in-house lender) expects some improvement in financing options, but cautioned consumers about the potential cost of procrastinating.

"With the passage of the bailout bill, I expect we will gradually see an improvement to the conditions in the Non-Conforming market in the form of a narrowing of the spreads between Conforming and Non-Conforming loan products, and in some cases, an easing of guidelines that will open up financing options to a larger pool of buyers," Hand stated.

"As for interest rates, they are expected to remain low, but like every other aspect of the economy they're subject to the volatility of the market," Hand commented, adding, "It's important for homebuyers to understand that interest rates are currently at historic lows and there's no guarantee they'll fall further with the passage of the bailout bill."

"While things in the real estate world may not be perfect right now, things are, and will continue to get better and better. The medicine tastes terrible but the cure will be worth it," NWMLS director Dick Beeson believes. Beeson, the broker/owner of Windermere/Commencement Associates in Tacoma saw a 21.8 percent surge of pending sales in Pierce County last month compared to a year ago and a notable shrinkage in inventory (down 11.2 percent from twelve months ago).

"We're moving toward a market place with fewer properties for sale -- and fewer and fewer choices for buyers. What a time to buy, low rates, low prices, low costs, and decreasing inventory -- all ready for those smart buyers who act now," he noted.

NWMLS director Kathy Estey, managing broker at the Bellevue Downtown office of John L. Scott said "September felt like we were gathering steam and back on track," but as economic news worsened during the month buyer confidence tumbled. "The news made it sound as if buyers need 20 percent down to get a loan -- and fear become our worst enemy again," she remarked.

On a more optimistic note she added, "The Puget Sound remains a great place to own property and there are opportunities to buy low and ride the rising prices that are around the corner in a year or two."

source:Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 31,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.