Please join me on Thursday, August 26^th at 10AM as I interview the senior leadership team of Prudential Northwest Properties and Columbia Mortgage. We will discuss the challenges and opportunities in today’s market, the importance of a business vision and a clearly defined strategy, as well as the real estate market forecast for the remainder of this year and into 2011.

You will walk away with ideas on improving your productivity, a better understanding of our local market, and ideas for personal development.

Click Here to register for this FREE online event on Thursday, August 26^th at 10AM. Hope to see you online!

Make it a great day!

Coach Dan

Free Webinar: Leadership Update 2010 is a post from: Coach Dan Foster

The federal government hopes to help low-down-payment home buyers, investors who fix up foreclosures, and communities burdened with too many bank-owned and foreclosed homes — all with one potentially far-reaching policy change.

The Federal Housing Administration revised its long-standing anti-flipping rules effective Feb. 1 and just might score a hit with all three target groups. For years, the FHA has had a strict prohibition: It wouldn’t insure a mortgage on a house if the seller had owned it for less than 90 days. The ban was a reaction to fraudulent quick flips of houses that inflated their values far beyond market worth. The flips often were pure cons: Buyer A would acquire a low-cost house in bad repair, make minor cosmetic changes and resell within days at a significantly higher price to Buyer B, who was also part of the scheme. The sequence could involve a string of serial flippers within a month or two, with prices spiraling upward.

The end game usually went like this: Find a hapless purchaser for the flipped house who would apply for a low-down-payment FHA loan. Typically, that buyer defaulted quickly — leaving the FHA with a foreclosed house on its books and a loss to its insurance funds.

The FHA maintained its 90-day anti-flipping rule through much of the past decade. But now it is suspending the policy, at least for the next year. In an advisory to lenders, FHA Commissioner David H. Stevens said the agency will again provide mortgage insurance for some purchases in which the seller had closed on the property less than 90 days earlier.

The objective, Stevens said, will be to speed up sales of renovated houses to first-time and other purchasers. With foreclosures at record levels — an estimated 2.8 million filings last year — many communities are faced with excesses of bank-owned properties sitting unsold, often in poor repair.

By waiving the 90-day rule, private investors will be more likely to bid on these houses, fix them up and sell them to buyers who will now be able to gain early access to FHA financing, which, according to Stevens, “is going to be absolutely terrific” for anyone looking to bid on a moderately priced post-foreclosure house in good physical condition. Some buyers will even be able to combine the $8,000 federal tax credit with 3.5 percent FHA financing — provided that their contracts are signed by April 30 and closed by June 30, when the credit program expires.

The FHA’s revised policy does not throw open the floodgates to all post-foreclosure renovations, however. Stevens laid down two key restrictions designed to protect end buyers and the FHA alike:

• No game-playing or conflicts of interest among buyers, sellers, realty agents or others involved in the deal are allowed. “All transactions must be arm’s-length, with no identity of interest” among any of the participants.
• Price run-ups must be relatively modest and justifiable from the time of the investor’s acquisition to what is paid by the applicant seeking FHA financing. Generally, the limit will be 20 percent.

Question: Do you feel this policy change will help investors, low-down-payment buyers, and communities with high levels of bank-owned and foreclosed homes?

Guest Post: FHA Takes Steps to Boost Foreclosure Sales is a post from: Coach Dan Foster

As you know I try to send out as many news articles as I can that provide a positive message on the economy and market. The article I am sending today is not one of those. However, it is one that we all need to be aware of because we cannot put our heads in the sand in times like these. Your clients will most likely see this article because the NEWS always seems to focus on the negative side of things. As trusted advisors it is our responsibility to be able to speak truth about the market no matter what the conditions and to provide action plans for our clients to achieve their goals.

Here is the article:

http://rismedia.com/2009-09-21/return-to-housing-peak-is-10-years-away-analysts-say/

The most successful business people have the ability to not only face their current reality but also have faith that in the end they will prevail regardless of the difficulties they experience. Nothing can hold back someone with passion of purpose, a vision for their business, a strategic plan for their actions, and the ability to prioritize their time.

If you are struggling in any of the areas that I mentioned above we need to talk. We have group and individual coaching experiences available for you to participate in that can help you to identify your purpose/vision/plan/ and prioritize your day to yield maximum results.

A great blog that I recommend you subscribe to is Reality and Hope by Steve Scanlon. He is someone that consistently provides relevant content to encourage his readers in this area.

Make it a great day!

Coach Dan

E: dfoster@prunw.com T: www.twitter.com/coachdanfoster

Reality and Hope is a post from: Coach Dan Foster

Join us for another engaging panel discussion on September 24th from 10am to 11am. We will be speaking to agents from across the company about their plan to finish the year strong and start 2010 off right. Your peers will be sharing their high payoff activities and business generation ideas that are proving to be successful. You’ll walk away with ideas and action plans to implement over the next 90 days so that you too can Finish the Year Strong!

Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/583562243

View the Finish The Year Strong Webinar Flyer

Make it a great day!

Coach Dan

Finish The Year Strong! is a post from: Coach Dan Foster

Washington, September 01, 2009 – Source NAR

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.

“Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said.

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.

NAR’s Housing Affordability Index² stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery’.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Make it a great day!

Coach Dan
www.purposedrivenbroker.com

e: dfoster@prunw.com
t: www.twitter.com/coachdanfoster
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Pending Home Sales on a Record Roll is a post from: Coach Dan Foster