Welcome to the "Z" Team!

The proposed bill, Neighborhood Preservation Act of 2011 (H.R. 2636), calls on banks and the government-sponsored enterprises–Fannie Mae and Freddie Mac–to start renting out some of their foreclosed properties to and “stabilize home values and restore confidence in the housing markets.” 

The bill would authorize federally-chartered institutions to enter into a long-term lease — for up to five years — with the occupant of the property or with another person, and then at the end of the agreement provide an option to buy the home to the tenant. 

The bill could allow delinquent borrowers to remain in their homes but they would have to agree to pay rent and still sign over the deed to the bank or GSE, National Mortgage News reports.

According to the bill, this would allow the foreclosed property to remain occupied during the still-sluggish housing market and “preserve the property itself as well as the aesthetic and economic values of neighboring homes and even whole neighborhoods.”  

“As Americans across the country are affected by this unrelenting foreclosure crisis, it is imperative that Congress address this issue,”Congressman Gary Miller, R-Calif., who introduced the bill, said in a statement.

Source: “Bipartisan Bill Encourages GSEs to Rent Foreclosed Properties,” National Mortgage News (July 27, 2011) and “U.S. Lawmakers Back Bipartisan Foreclosure Aid Bill,” Reuters News (July 28, 2011)

Some of us in the Placerville, California region for over 3 years have wondered when the Fed’s would consider multiple options similar to this especially to the owners in foreclosure?

A recent survey found two out of three Americans are more concerned about their finances today than they were at the beginning of the financial crisis two years ago.  The survey, conducted by the Certified Financial Planners (CFP) Board, also found 44 percent of Americans expect the U.S. economy to improve in the next six months, while only 28 percent expect conditions to worsen.

Other highlights of the CFP survey include:

Slightly more than one-third of Americans (37 percent) expect to see their personal finances improve in the next six months versus less than half (46 percent) who expect to hold onto what they currently have and 16 percent who expect to lose money.

80 percent of Americans say that Congress and regulators have not done enough “to deal with the financial market problems and their impact on American investors.”

When asked to describe how they feel about their personal finances, the number-one response was “cautious” (33 percent), followed by “calm” (26 percent), “concerned” (25 percent), and “hopeful” (25 percent).  Respondents could select multiple responses.

More information at: http://www.cfp.net/media/release.asp?id=253

Congress passed a bill this week extending the deadline to close escrow and qualify for the federal home buyers tax credit. President Obama is expected to sign the bill extending the deadline to Sept. 30, 2010, instead of its original June 30 deadline.

KEEP THIS IN MIND!

• The bill extends the deadline to close escrow for home buyers who entered into a home purchase contract by the April 30 deadline. First-time buyers may be eligible to receive up to $8,000 and qualified existing homeowners may receive up to $6,500 if the home buyer closes escrow by Sept. 30.

• Home buyers entering into sales contracts May 1 or later are not eligible for the federal tax credit, but they may qualify for the California home buyer tax credit.

• The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® worked closely with members of Congress to extend the deadline. Estimates from NAR show nearly 180,000 home buyers nationwide would have missed out on the tax credit if the deadline was not extended, including nearly 17,700 home buyers in California.

• Many of the home buyers who would have missed out on the tax credit are in the midst of purchasing a short sale or foreclosure, which generally take longer to close due to the amount of paperwork involved in the transaction.

To read the full story, please click here:

http://money.cnn.com/2010/06/30/news/economy/homebuyer_tax_credit/index.htm