Getting a Real Estate License in Michigan

A couple of days ago, a blog post in my Google Alert caught my attention. The subject line read "Getting a Real Estate License in Michigan." The poster gave misinformation. I emailed her with the correct information, but did not get a response. In order to dispell this information, I will post the correct order to go about the task.

Step 1. Take your prelicense course. I only teach the prelicensure course in Traverse City and Grand Rapids. Click here for my upcoming schedule.

Step 2. Go to www.michigan.gov/icola and creat an account. Make application for your salesperson license using your Icola account. If you do not have a broker, you may preregister for your salesperson license. You will not however receive your license at the testing center in this case. For more information about the new rules, click here iCOLA. (Broker Candidates, you must complete all of your requirements, before you register for your license)

Step 3. The broker approves the application.

Step 4. Go to www.psiexams.com print out the registration form and faxing it to PSI with your charge card number or by mailing it with a money order or certified check in the amount of $48.

Step 4. After you have allowed time for your money to be credited to your account, you may schedule your exam at www.psiexams.com or by calling the 800 number on the fax application. For additional information and test locations please see www.psiexams.com PSI has prepared a candidate handbook which you may download and print out. It contains all of the relevant information for obtaining your Broker or Salespersons exam and license. Click on: Candidate Information Bulletin

This is the perfect time to consider a real estate career. As long as you know that real estate is not for wimps, this could be the career for you. We have lost almost a third of the agents. When this difficult economic time is over only the strong will survive. If you have what it takes, this could be the best time ever.

Continuing Education Michigan Real Estate

Life has been interesting. I spent some time getting closer to my grandchildren while my daughter-in-law was hospitalized. I am getting caught up now. This will be an exciting fall. I had thought I was going to kick back and enjoy retirement. Well, not so much. My fall schedule is up and running. I am considering hiring a personal assistant and kicking it into high gear again. This will be fun. I am also teaching private Realtor Code of Ethics courses in various areas.

Call The Acme Institute (Approval Code K348) at 1 800 799-0483 to book a private continuing education course. We can bring the education to you at your location. Call 1 800 799 0483 to schedule the 2008 Course #900 Classes. Tuition: Lunch is included in the one day classes for $50 Most classes are from 8:00 AM to 1:45 PM. Grand Rapids and Petoskey are 9:00 AM to 2:45 PM. Grand Rapids has a two evening class September 15 and 16 that runs from 6:30 PM to 9:00 PM

Course #900, includes the mandatory law portion.

This year, give yourself a treat. Rather than just attending continuing education, chose a con ed destination! We are usually done at 1:45 pm and lunch is included. This gives you plenty of time to study the real estate market in the city of your choice. For complete details go to www.TheAcmeInstitute.com

Ann Arbor Oct. 24 & Dec 22; Gaylord Oct 17; Grand Rapids Sept 15&16 evening, Oct 10, Oct 23, Nov 8, Dec 18 and 30; Houghton Lake Oct 8, Key West Oct 29, Ludington Oct 20 & Dec 12; Midland Dec 23; Petoskey Oct 6; Saginaw Oct 9; Traverse City (Acme) Sept 13, Oct 3, Nov 24 & Dec 31; Traverse City (downtown); Oct 27 & Dec 10

Time: Unless noted otherwise, all classes are scheduled from 8:00 a.m. - 1:45 pm and include lunch. Students need to arrive at least 15 minutes early for sign-in. Students arriving after class begins need to make arrangements to make up time missed in order to achieve credit for attending the class. Attendance will not be verified to the State of Michigan until all missed time is made up. Students arriving later than 15 minutes after start time of class may not be admitted to class.

Tuition: All classes include lunch, beverages and all materials.

Special Needs: If you have needs requiring special accommodations, please call us (800) 799-0483. To accommodate those with dietary restrictions, please call at least five days prior to the class date to ensure the appropriate menu.

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A Great Week of Great Events

The week began with a continuing education class of the type I normally teach. It was a small class, but they made up for their size with their enthusiasm.

Wednesday was wonderful. I would have never believed it before it started. Only one person had actually signed up for the class. Lola Audu conducted a class on blogging in the morning. I followed it up with my first presentation of Code of Ethics in the afternoon. As is is a mandated curriculum, I had to follow it exactly. I have never worked with a power point presentation, before, but it worked fine. There were eight students in class and they were all happy to be there. They were totally engaged. I had a great time.

Today, I decided that I belong to the greatest Associations of Realtors in the world. As a fund-raiser and simultaneous fun-raiser, they held a chili cook off for the members. What a great networking opportunity. The theme was Mexican and The Executive Officer, Kim Pontius made a new friend. I understand there are some associations around the state where the members don't "play well with others". This certainly cannot be said about The Traverse Area Association of Realtors. Once again, I must say, I love my city. Traverse City, Michigan is a wonderful place to live, work and play.

Monday will be back to work again, if you can call it that. I will be teaching Realtor Code of Ethics to TAAR members. Both the morning and the afternoon classes are sold out.

Five Kinds of Lilacs

Get ready for another "I Love My City" rant. Seven years ago this month, I fell in love with my little spot on the planet. I was teaching in Traverse and staying at the Sleep Inn. I got my bike out of the back of my van and headed for the TART trail. I went through the woods and got to the top of the hill. I looked to the west and the moon was just saying goodbye to the starry night. The dawn was just begining to cast its glow on the East Arm of Grand Traverse Bay. It was spectacular. I paused for a moment to take it in and was overcome by the headiest perfume imaginable. Wow, five kinds of lilacs, flowering quince, autumn olive and redbud tree were all celebrating the morning. I was transported. I glanced down and what to my wondering eyes did appear but a "For Sale" sign. Oh my, could it be? I glanced at the wee house through the brush and it was pretty ugly. But, five kinds of lilacs. So much for the bicycle ride. I went back to the hotel and got on my computer. I could not find the listing. At 8:00 AM I called the listing office and it was brand new on the market. At 10:00 AM, I had my bank fax me a letter of qualification and I wrote an offer, contingent upon inspection. I made an appointment to view it that evening. As I walked up to the house, I saw it hadn't been painted in about 30 years. It was cement with a flat roof and the yard was a mess. But, five kinds of lilacs. My last husband was my inspector. He found eight pages of defects. To which I responded, "So."

This has become my home. Since I bought it, I discovered it is a Frank Lloyd Wright Usonian. I have been working on bringing it back to where it once was. I just got back from a bike ride on the TART trail which adjoins my back yard. Life is good on my little piece of real estate in Traverse City, Michigan.

Code of Ethics and Blogging in the 21rst Century

I am pretty excited. The Michigan Department of Labor and Economic Growth has approved the Realtor Code of Ethics for three hours of continuing education, including two hour of core legal update. Many people do not like taking the class online and would appreciate the human interaction. Shortly after this approval I got a call from a friend in Grand Rapids. Lola Audu, a broker, instructor and mentor that I highly admire obtained approval from the state to present a class on blogging. Her class is only four hours and she was requesting permission to tell people that I had a two hour class that would count. The light bulb went on.


Why not present both classes on the same day? We will be doing this for the first time on May 28 at the Grand Rapids Association of Realtors. For more information on Lola's class click here: http://www.lolaaudu.com/ and then click on continuing education. For more information on my class to to www.TheAcmeInstitute.com

And to further sweeten the deal. If you attend both classes, we will buy you lunch.

Michigan Real Estate Legislative News.

The state has recently passed three pieces of legislation that effect my friends in the real estate business. Click on the law number to open the complete new law in PDF.

ITEM 1: Minimum Service Requirements--Public Acts 90 and 91 of 2008 (House Bills 4416 and 4417) will become effective July 1, 2008. They create minimum service requirements for licensees who act as sellers' and buyers' agents. These requirements are NOT applicable for licensees acting as transaction coordinators.

A list of duties and services typically provided by licensees acting as agents has been added to the Disclosure Regarding Real Estate Agency Relationships form. When applicable, a licensee must also note on that form when they're acting under a "Limited Service Agreement."

These acts also create a new "Limited Services Agreement" form that must be signed and dated by sellers and buyers when waiving services that are allowed to be waived under these acts.

ITEM 2: Additional Principal Residence Exemption Public Act 96 of 2008 (House Bill 4215) was enacted on April 8, 2008. It provides property tax relief for sellers who have moved out of their homes, but are attempting to sell them. It also allows a seller who has purchased a replacement principal residence to claim exemptions on both the new and old residences while attempting to sell the old residence.

A seller is eligible for an additional exemption for up to three (3) years if the property is not occupied, not leased (it may be available for lease), not used for any business or commercial use, and is currently offered for sale.

To qualify, the seller must file a "conditional" rescission form on or before May 1 for the year claimed. The Michigan Dept of Treasury must create this new form, which is not yet available.

ITEM 3: Owner Built Residence Transfer Act Public Act 6 of 2008 (Senate Bill 577) will become effective August 10, 2008. It attempts to curtail the practice by individuals who are not licensed builders, but who build new residences and immediately resell them. Supposedly, many individuals have essentially made a living by doing this without ever being licensed as residential builders.

Unless there are "unforeseen circumstances," a non-builder owner who builds a new residence may not sell it for at least 365 days after receiving an occupancy permit. The "unforeseen circumstances" exception may be used only once per calendar year.

A non-builder owner who sells the residence within two (2) years after receipt of the occupancy permit must provide the buyer with an "owner-builder notice." The notice must be on a "separate piece of paper" (meaning that incorporating the notice into a Buy-Sell Agreement doesn't comply), must be in a 12-point font or larger, must include a statement that the owner is NOT a licensed Michigan builder, and must be signed and dated by the seller.

An owner who fails to comply with this law is liable for all of the following for up to 24 months after completion of construction, first occupancy, or purchase, whichever occurs later: (1) the cost to repair any defects in workmanship; (2) the cost to bring the structure into compliance with the building code in effect at the time the occupancy permit was issued; (3) the cost for temporary shelter for the buyer if repairs require the buyer to vacate temporarily or if structural defects render the home uninhabitable.

The Horoscope

I have never before torn a horoscope from the newspaper. To be honest, I look at them to marvel at how someone can write something that could universally be interpreted to apply to anyone who would read it. This one has it nailed.

Think about it. Is it possible that where you are is a turning point? Is it just possible that your decision today could effect the rest of your life?

My close friends know that life has not been smooth for me the past year or so. Work, relationships, family have all had some problems. Where we are today, is so totally based upon where we have been. Our destiny is our own. What are you going to do today so that tomorrow is the beginning of the moment you have been waiting for your whole life long?

I am so grateful that I have found work that makes me get out of bed in the morning, excited to start my day. I am grateful for the love and good health of children and grandchildren. Good friends complete that picture. Music rounds out my life. I am at peace in my little part of the planet I call home. My house, my garden, my pond, the TART trail behind my house, the East Arm of Grand Traverse Bay, this wonderful region all complete that picture. Life is good. Yes, I can probably say, I am in a place I have waited my whole life to be.

Do I have some regrets? Sure. Don't we all? But, the bad decisions of my life all go together to make me the strong individual I have become today. Tomorrow will be even better.

More Info on Save the Dream.

The new Save the Dream tools are:

• The Adjustable Rate Mortgage (ARM) Refinance Program that will assist homeowners who have an ARM in refinancing to a 30-year, lower-interest, fixed-rate conventional loan;

• The Rescue Refinance Program that will assist individuals who have a delinquency on their mortgage and who are at risk of losing their home will have a chance to get into a more affordable 30-year, fixed rate, conventional loan.

Both initiatives are targeted at existing homeowners. To qualify for one of the new loan programs, homeowners must meet the same income and sales price limits that other MSHDA loan products require. Household income must be under $108,000, and the purchase price of the home cannot exceed $224,500. The initiatives will be funded by taxable bonds, and homeowners will be responsible for the full value of their refinanced mortgages. The original mortgage does not have to be a MSHDA loan; however, the homeowner must meet MSHDA requirements for the refinance product. This qualifying information is available from approved lenders and directly from MSHDA.

For more details on the Save the Dream refinance programs and other services, a visit to www.michigan.gov/mshda will take seekers to MSHDA’s home page and the Save the Dream icon where up-to-date information about the loans, services, and MSHDA-approved lenders and certified counselors is available. There is also a consumer hotline that helps callers find a counselor locally. That toll-free number is 1-866-946-7432.

Transfer Tax News

Attorney General Clarifies Important Exemption to Michigan Transfer Tax

Attorney General Mike Cox issued an important opinion this week clarifying the proper application of an obscure exemption contained in the Michigan Transfer Tax Act. The opinion, arising out of a request from Representative Martin Griffin (D-Jackson), should afford certain home sellers immediate financial relief as Michigan’s real estate market continues its road to recovery.

Exemption “t”, as designated in the Michigan Transfer Tax Act, sets forth that a seller may seek an exemption from paying the state transfer tax if the following criteria are met:

1. The property must have been occupied as a principle residence, classified as homestead property;
2. The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
3. The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer.

With property values and corresponding SEV declining due to the struggling economy, home owners and real estate agents first took notice of the exemption’s possible applicability under the state transfer tax. However, absent an official interpretation, there was little awareness of its proper application.

The opinion from the Attorney General uses examples to show how the application would apply. One example illustrating application provides:

If the SEV of the principle residence when acquired in 2006 is $74,000.00 and the SEV when transferred in 2008 is $72,000.00 then criteria one and two above are satisfied. You can establish the true cash value by doubling the SEV at the time of transfer. In this case the true cash value is $144,000. If the sale price in 2008 is $140,000.00 then the sale does not exceed its true cash value. All three criteria are satisfied and the exemption would apply.

The Attorney General’s opinion provides immediate relief to home sellers already faced with the reality of declining value on their single greatest asset. The opinion also provides a uniform reading of the exemption that is necessary to provide consistent application among the various Registers of Deeds across the state as they are already receiving filings for the exemption.

Sellers should be cautioned that a request for the exemption that fails to meet all three criteria could bring a penalty equal to 20% of the tax assessed in addition to the tax due. Additionally, no similar exemption exists in the County Real Estate Transfer Tax Act.

Save the Dream

This was posted on the www.Michigan.Gov site today . This law combined with the proposed federal changes could be the light at the end of the tunnel.

Governor Granholm's "Save the Dream" Legislation Will Help Families Threatened by Mortgage Foreclosure

Contact: Liz Boyd 517-335-6397

March 28, 2007

Radio Address highlights programs that will help at-risk homeowners

LANSING - In her weekly radio address, Governor Jennifer M. Granholm today said she will sign legislation next week that will help preserve home ownership for thousands of Michigan families threatened by mortgage foreclosure.

"Hardly a day goes by that we're not confronted by more bad news about the mortgage crisis and the impact that it's having on the lives of families and the nation's economy," Granholm said. "These new laws will give existing homeowners new refinancing options through the Michigan State Housing Development Authority."

The governor highlighted two programs she proposed last fall that are targeted at existing homeowners who may be facing foreclosure:

- an Adjustable Rate Mortgage (ARM) assist program that will help qualifying homeowners who have an adjustable rate mortgage convert their mortgage to a 30-year, fixed-rate, conventional loan; and,

- the Rescue Refinance program that will help at-risk homeowners who have missed one or more payments by giving them the opportunity to get into a more affordable 30-year, fixed-rate, conventional loan.

"We've also put into place a unique program dedicated to providing information on helping families "save the dream," Granholm added. "Helping Michigan families in danger of losing their homes is not only our priority, it is our duty."

The governor's weekly radio address is released each Friday morning and may be heard on broadcast stations across the state. The address is available on the governor's Web site at ( www.michigan.gov/gov ) for download, together with a clip of the quote above. The radio address is also available as a podcast on the Web site, as well as on iTunes and via RSS feed for general distribution to personal MP3 players and home computers. Links to the audio files and text of today's address follow.

GOVERNOR JENNIFER M. GRANHOLM
Radio Address - Save the Dream, March 28, 2008

Full: http://www.michigan.gov/documents/gov/Gov138_Full_229558_7.mp3
Edited: http://www.michigan.gov/documents/gov/Gov138_Edit_229562_7.mp3
Quote: http://www.michigan.gov/documents/gov/Gov138_Quote_229564_7.mp3

This is Governor Jennifer Granholm. Hardly a day goes by that we're not confronted by more bad news about the mortgage crisis and the impact that it's having on the lives of families and the nation's economy as a whole. While the crisis has led to the downfall of some on Wall Street, it is also affecting Main Street with too many citizens facing the unthinkable: the loss of their home.

That's why last fall, I proposed the Save the Dream legislation to help preserve home ownership for thousands of Michigan families threatened by foreclosure, and I'm pleased to report that thanks to bipartisan support in the Legislature, those bills have been sent to my desk, and I'll sign them into law next week.

These new laws will give existing homeowners new refinancing options through the Michigan State Housing Development Authority.

First, we'll be able to offer an Adjustable Rate Mortgage (ARM) Assist program for qualifying homeowners who've got an adjustable rate mortgage. Homeowners will be able to convert their mortgage to a 30-year, fixed-rate, conventional loan.

A second program - the Rescue Refinance program - will help at-risk homeowners who've missed one or more payments by giving them the opportunity to get into a more affordable 30-year, fixed-rate, conventional loan. Both of these programs are targeted at existing homeowners who may be facing foreclosure.

Signing this legislation into law is just the latest in our effort to help Save the Dream of homeownership. In January, I met with representatives of the nation's leading mortgage servicers who, at our request, are taking steps to protect homeowners who are facing possible foreclosure.

They've agreed to hold down interest rates for many homeowners with adjustable rate mortgages who are making their payments on time and, in some cases, freezing the loan rate for up to five years; and they've agreed to offer advance notice to homeowners with sub-prime mortgages before their rates are scheduled to increase, so they can help homeowners avoid foreclosure.

These mortgage servicers are also committed to working with us to identify methods to help control neighborhood blight, which results from so many of these foreclosures.

We've put into place a unique program dedicated to providing information on helping families save the dream. If you or someone you know is facing the possibility of home foreclosure, you can access more information by calling toll-free: 1-866-946-7432; again, that's 866-946-7432, or by visiting: www.michigan.gov/savethedream.

Helping Michigan families in danger of losing their homes is not only our priority, it is our duty…

Thank you for listening.

Not Only do I Love My City, I Love my Association of Realtors

This really is an event you do not want to miss. TAAR is hosting an awesome, free expo entitled The Housing Game. I will be sitting on the panel with the discussion topic, "Why do I need a REALTOR®?

Immediate Past President of the National Association of Realtors® Pat Combs is going to be a panel moderator at the Housing Game Expo on Saturday, April 5, at the Hagerty Center. Ms. Combs is from Grand Rapids, Michigan, and is the 2008 Immediate Past President of the NATIONAL ASSOCIATION OF REALTORS® (NAR). NAR is America's largest professional association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries. Pat served as NAR President in 2007 and NAR President-Elect in 2006. In 2005, she was NAR First Vice President. She served as NAR Regional Vice President in 1997 of Region VI, composed of Michigan and Ohio. She will be moderating two sessions of "Why Do I Need a Realtor®".

The event will be at the Hagerty Center, 715 E Front St., overlooking the west arm of Grand Traverse Bay, Traverse City, Michigan.

I Love My City!

Too much entertainment. Too little time. It is not possible to enjoy every entertainment possibility that is happening right now in Traverse City, Michigan. Last night I went to the Inside Out Gallery to enjoy the April Verch Band. She is one very talented woman. She can dance, sing and play the fiddle at the same time. Her husband is an awesome percussionist. Such talent and energy. They played Appalachian, Celtic, Bluegrass, Old Time and Ottowa Valley music.

This afternoon, I am going to Union Street Station to watch Beoga. I have not seen them before, but here is one review: “A heady, virtually head-spinning, sonic blend stamping Beoga as perhaps the most audacious Irish band rooted in trad today” The Irish Echo



The newly remodeled State Theater is featuring the Irish movie "Once". I may go see that in the evening. Song of the Lakes is playing at Kilkenny's. While that is tempting, I will wait and see them for free at the library 3:00 PM on St. Patrick's day.

On St. Patrick's Day Out and Beyond is playing at Kilkenny's from 3 - 6PM followed by Song of the Lakes. The Ruby John Band is playing at Bench Warmers in Maple City. I am taking my guitar to a house party and celebrating quietly.

You would probably think this is all the entertainment one would need for a few days. Well, you are wrong. Who could pass up an opportunity to experience Little Feat at the newly renovated City Opera House on Tuesday the 18th.

Yes, I plan on getting some work done this week also. I am finishing up my Realtor's Code of Ethics curriculum in order to be ready to teach it in May. I will also be scheduling my real estate continuing education classes for summer and fall and writing curriculum for some specialty continuing ed courses for the local Association of Realtors.

The Future of Real Estate in Michigan

As most of my students know, a lot of real estate classes in Michigan have been canceled due to lack of interest. Some people have a "gloom and doom" image of the real estate industry. This is not true of the graduating class of March 2008, U. S. Brokers Institute, Inc in Acme, Michigan. They are all realistically ready to tackle today's market. The fundamental class contained both Broker and Salesperson candidates. By combining the two, we are able have sufficient attendance to continue to offer quality education to both. After their names, I have either put the initials BC or SC, which stands for Broker Candidate or Salesperson Candidate. If you look for these people in a couple of years, you will find they are all outstanding in their field. I know when I spot a "keeper". To have an entire class of them is awesome. This is the class teachers get when they go to teacher heaven.
L to R: Luke Altman, SC; Jim Jesse, SC; Carolyn Collins, BC; LouAnn Ford, BC; Lisa Grise, SC; Karen Copeland, SC; Jean Hughey, BC; Matt McCullough, SC; Doug Taylor, BC.

It is not a seller's market or a buyer's market. It is an agent's market. More millionaires per capita were created during the Great Depression than any other period. All nine of these are realistic and ready to do whatever it takes to position themselves for success. In fact some of them already have. The broker candidates were all busy on every break taking care of business.

I am looking forward to having the broker candidates as students again in my real estate law classes. Go to www.TheAcmeInstitute.com for a more complete list of upcoming classes.

IRS Ruling 1031 Exchanges on Vacation Property

Daily Real Estate News | March 10, 2008

IRS Releases Vacation Home Ruling
The Internal Revenue Service recently issued a Revenue Procedure ruling that spells out how vacation properties can qualify for 1031 exchanges, which involve the exchange of investment properties.

The guidance aims to clear up the debate about whether vacation homes are investment or personal use properties. The ruling states that the property must be held by the taxpayer for 24 months. The holding period is broken into 12-month blocks, and during each the property must be rented at the fair market rate for no less than 14 days.

Additionally, the owner can use the property for 14 days or 10 percent of the days rented, whichever is greater, plus a "reasonable" number of days devoted to maintenance tasks. Because it is a safe harbor ruling, experts say failing to comply with all the rules does not mean the exchange will be denied or an audit will automatically occur.

However, they underscore the importance of keeping good records of the property's rental history and the dates the property was occupied by the owner for maintenance.

Source: Realty Times, Gary Gorman (03/06/08)

© Copyright 2008 Information Inc.

Let’s Stay Optimistic

Let’s Stay Optimistic

While much of the nation is geared up for 2008 to be the worst year on record for real estate foreclosures, Michigan, traditionally near the top of the list for state’s with the worst foreclosure rate, experienced a substantial drop in property foreclosures during the first month of the year.

A recent report comparing the foreclosure inventory for January of 2007 with January 2008 showed that the rate in the current year is 8 percent lower than it was a year ago. Furthermore, the statistics showed a 7% drop in real estate foreclosures from December to January, remarkable considering that in many locations December is one of the slowest months for foreclosures.

This also resulted in a drop in the states with the highest rate of foreclosure. While Michigan held solid to the number three spot behind Florida and Nevada for most of 2007, it has now dropped to 10th on the list.

Of course, it’s far too early to tell if this will have any lasting effect on the real estate foreclosures market in the state. With a sluggish economy and more adjustable rate mortgages scheduled to go into periods of adjustment during 2008, we have yet to see whether Michigan’s housing market will slowly begin to rebound, but it is a promising sign.

Several other states experienced drops in their foreclosure rate in January, and experts are attributing this to state and federal efforts to start raising awareness amongst citizens about what to do when faced with a default to avoid a foreclosure. In some cases, homeowners are even receiving money or stalled proceedings to allow them to catch up. However, as time goes on we’ll see if this is actually helping people to start being able to deal in a timely manner with their mortgages, or if they are simply temporarily preventing the inevitable.

For investors, getting involved in the Michigan real estate foreclosures market could still be risky, but for homebuyers there may not be a better time. There are plenty of great Michigan foreclosure homes out there that would make great family residences for cheap prices, and if you’re willing to wait out the market, these could become incredible investments once property values start to rise again.

Michigan Real Estate Legislative News

Michigan lawmakers squabble over plans to ease property taxes

by The Associated Press

Monday March 10, 2008, 6:17 PM

LANSING, Mich. (AP) -- Democrats and Republicans in the state Legislature on Monday accused each other of stonewalling some of their efforts to provide property tax relief.

Democrats who run the House want the Republican-led Senate to pass a bill that would put an 18-month moratorium on the so-called 'pop up' tax resulting from home sales. Supporters say the House-approved plan would give buyers an incentive by letting them pay roughly the same amount of property taxes paid by the previous owner if the home is bought during a specified time, rather than a higher tax bill that ordinarily would be due under state law.

Under current Michigan law, the assessed taxable value of a home can rise annually by no more than 5 percent or the inflation rate when it has the same owner. But when the house is sold, the new owner's property taxes usually rise by far more because the cap is lifted.

The plan has opposition from some local government groups because tax revenues could be lower than otherwise allowed by state law.

Senate Majority Leader Mike Bishop, R-Rochester, said in a statement his caucus won't back "one-time quick fixes." Instead, Bishop pointed to a GOP-backed package in the House that he said may give lasting property tax relief.

House Republicans on Monday called for Democrats to allow votes on the legislation that would prevent a homeowner's property taxes from rising in a year when the home's value declines. The plan also would give property owners more time to appeal assessments, eliminate the real estate transfer tax and provide some relief from the pop-up tax.

Some elements of the Republican plan may yet be considered in the House. But others are similar to bills already approved, said Greg Bird, a spokesman for Democratic House Speaker Andy Dillon of Redford Township.

Bird said the Democratic plan is the best and quickest of the proposed options to provide homeowners some relief and spur home sales. Another concern about the Republican plan is that it could further limit revenues to government.

Traverse City Real Estate

I love my city! I just picked this article up from another blog. Click on the link following the exerpt for the complete story.

Realtors: Sales decline skipped Michigan towns

Posted by ANDREW McGLASHEN | Capital News Service February 22, 2008 11:55AM

Categories: Business

LANSING - A quick scan of the news offers a bleak portrait of Michigan's housing market: menacing locks on the doors of foreclosed houses, plummeting home values, empty neighborhoods dotted with "for sale" signs.

But not every part of the state feels the crunch.

"We've been somewhat insulated up here," said Kim Pontius, executive vice president of the Traverse Area Association of Realtors.

"Real estate is a local phenomenon, not a national phenomenon," he said, and a comparison of housing markets in Southeast and Northwest Michigan is "like night and day."

Pontius said smart borrowing and lending practices, as well as the Traverse City area's aesthetic appeal, have kept the market there stable.

"The values of the homes are consistent with what people are borrowing," he said.

Pontius said his organization sold just under 10 percent fewer homes in 2007 than in the previous year. But he added that 2005 and 2006 were "banner years," so the dip in sales wasn't surprising.

http://blog.mlive.com/cns/2008/02/realtors_sales_decline_skipped.html

Caution Light, Fraud Alert

I woke up and went to my laptop to check my email and got a letter from a firm that offered a short sale certification course.in Michigan for $149 for three hours. Why didn't I think of that, said I? I went to their site and observed some of their advertisers. The light bulb went on. This Hope Now and Project Lifeline is going to open people up for the possibility of identity theft and fraud. I Goggled both of those phrases and it was incredible to observe the number of entrepreneurs that were sharp enough to build themselves a web presence in the past month. They may even be legitimate businesses that are just trying to make a buck, but it is scary. The real phone number for Project Hope 888 995 HOPE is contained in the letter you may find at this hyperlink http://www.treasury.gov/press/releases/hp820.htm

I had probably better do a good cleaning on my computer. I can only imagine the number of cookies I picked up as a result of some of the sites I poked around. Yes, some were asking my social security number and did not have the little letter S after their http address. Be careful out there.

The Michigan real estate market has enough problems right now. It is a really sad state of affairs to imagine some may wish to benefit from people's misfortune. Who would have thought that real estate mortgage fraud and foreclosure could morph into foreclosure fraud?

Boat Building

It has been a very interesting year. I realize in retrospect that my post last spring reeked of naiveté. I feel much better educated now. Darn, I hate the School of Hard Knocks. As I was at school obtaining my AARE designation (Auctioneer Accredited in Real Estate), my last instructor accused me of looking at the world with rose colored glasses. He was right.

I am definitely not good at accepting failure, but as Henry Ford once said, “Failure is the opportunity to begin again, more intelligently.”

I feel I have been out on the ocean in strong winds and faced them with success. I then turned another course and it did not work as well. I have been dumped from the boat and made it to shore. I am starting over again. Not only do I have to go to sea. I have to build the boat. I then have to determine the nature of the sea and if it is navigable.

I have been an auctioneer for twenty-six years and a real estate instructor for thirteen years. I love them both. I have discovered a way to accomplish both. I have decided, for now, to link up with several of the best auctioneers in the state. I will have, arguably, the finest referral aliance going. I have talked with various auctioneers that have agreed to partner with me on the auctions that approach me, so I will still get to work in that craft.

While I have nothing but the highest regard for my previous boss, financially that arrangement did not work out successfully. I am now on my own. I am the president of the Acme Institute, Inc., one of Michigan’s newest real estate academies. I will be primarily teaching private continuing education classes throughout Michigan. I will hold just a few public courses which will only be advertised on the internet. I have come to realize how much I miss the way it used to be. When I was teaching 130 Con Ed courses and 35 one week prelicensing courses, it was a huge high. I was sailing my vessel in strong winds. It was an adrenalin rush. Every day, I bound out of bed eager to get to work. It was my life. For, now, when I get this new vessel built, I am guessing, it will only venture out into the sheltered bays. I have to do the entire thing. But, then again, I am blessed with a great amount of confidence and optimism. I will also be teaching Salespersons and Broker’s courses for U. S. Brokers Institute, Inc. in both Traverse City and Grand Rapids. With a bit of luck that can grow nicely. The state has just approved my law books for instruction and things are looking up.

I always try to find the bright spot in life. If it’s going to be, it’s up to me. I will be building this boat, mostly alone. Some friends will occasionally stop by and wield a hammer or cheer me on. Only time will tell of its seaworthiness. I believe it will sail very well.

Check out my new class list at www.TheAcmeInstitute.com

A Proverb

This is the best I have ever heard it explained!!

Two wolves.

One evening an old Cherokee told his grandson about a battle that goes on inside people. He said, 'My son, the battle is between two 'wolves' inside us all.

One is Evil. It is anger, envy, jealousy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.

The other is Good. It is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion and faith.'

The grandson thought about it for a minute and then asked his grandfather: 'Which wolf wins?'

The old Cherokee simply replied, 'The one you feed.'

Delinquent Homeowners Get a New "Lifeline"

I am working on this years continuing education presentation and there is a portion on short sales and foreclosure. I have decided I should share with my readers some of the information I am finding. This is very relevant to todays real estate agent.

Delinquent Homeowners Get a New "Lifeline"

Six of the big mortgage companies involved the Hope NOW Alliance announced that the Alliance is expanding its efforts to help homeowners facing foreclosure.

The rate freeze program announced by President Bush in December applied only to borrowers who were facing resets on subprime adjustable rate mortgages but who were current, in fact had never been delinquent, on their mortgage payments.

The new program dubbed Project Lifeline extends earlier Hope NOW efforts to include those who are seriously delinquent whether their problems are with subprime, Alt A or prime loans and will even assist those in foreclosure with second mortgages or home equity lines.

The new program was announced in a press conference Tuesday morning at the Treasury Department. Treasury Secretary and Department of Housing and Urban Development Secretary Alphonse Jackson along with Bank of America representative Floyd Robinson and Home Now Alliance Executive Director Faith Schwartz presided.

Lifeline will be, at least at first, a joint effort by six of the largest mortgage servicers in the country; Bank of America, Wells Fargo, Citigroup, Washington Mutual, J.P. Morgan Chase, and Countrywide Mortgage. These six represent 50 percent of the U.S. mortgage market. There are another 19 services that are members of Hope NOW and Secretary Paulson expressed a strong desire to have them sign on to the new program.

Borrowers who appear to qualify for help will receive letters from their mortgage servicers notifying them of the program and their possible eligibility. These borrowers, who will be at least 90 days behind in payments, must contact the servicer within 10 days of receiving the letter and inform the servicers that they are interested in the program, that they are willing to participate in counseling if required, and they must provide financial information to the servicer. If the loan appears salvageable, the homeowner will be granted a 30 day "pause" in the foreclosure process to allow time for a loan modification or other resolution.

Bank of America's Robinson said that the evaluation of a borrower's situation will address the entire picture including credit card and other debt and will be transparent so the borrower knows exactly what is happening with the foreclosure and his loan.

Robinson and Schwartz recapped some of the activities of Hope NOW since it was set up to facilitate contact between troubled homeowners and those who might help them.

The hotline is now handling over 4,000 calls a day, up from 625 at its start, and there are 400 housing counselors working for Hope NOW. The organization has sent out 775,000 letters to borrowers in the last three months and has a 16 percent contact rate but hopes that this will improve as the program receives more publicity. An additional 200,000 letters are going out each month. 870,000 borrowers have been helped with their foreclosure situation and over one-half million of these have been subprime borrowers. Loan modifications doubled in the fourth quarter of 2007 over the third quarter.

One reporter asked how borrowers who are "upside down" in their loans would be treated. Would Bank of America for example, be open to writing down a loan to reflect the current market value of the home, thus forgiving that amount of debt? Robinson said he could not speak for the other servicers but that Bank of America would look at this kind of solution on a borrower-by-borrower basis.

Another reporter asked how many borrowers Project Lifeline was expected to help but Secretary Paulson refused to speculate saying that it would be up to the individual servicers to determine that number but that there would soon be a reporting system in place so that these kinds of questions can be answered.

Paulson stressed that not all borrowers can be helped by Project Lifeline or any other program. There will be some who simply refuse to make contact or who walk away from their homes and those whose financial situation makes it impossible to keep their homes "and we cannot help those who refuse to honor their obligations. But Project Lifeline has the potential to offer new solutions to responsible, able homeowners who want to keep their homes."

Go to www.HopeNow.com for more information.