Gwyn's Classes, Thoughts & News

HUD's RECENTLY PUBLISHED TIMELINE

2009-04-13T04:18:00.000-07:00

You can help. People in the foreclosure process are confused and stressed. They are counting on their real estate agent to know what is happening. Put this in your briefcase until you have it memorized. You also need to go to http://www.mshda.info/counseling_search/ and enter your county to learn of the MSHDA-approved counselors that may be able to help your client. Just because someone calls and tells you they need to sell their home, does not mean it is true. There may be a bail out for them, depending upon where they are in the foreclosure process.

Here is the timeline. For a PDF version to print out, go to http://www.theacmeinstitute.com /foreclosure_timeline11.pdf

$8,000 First Time Home Buyer Credit

2009-04-02T07:56:00.001-07:00

First-Time Homebuyer Tax Credit

I am getting lots of emails concerning the $8,000 tax credit for first time homebuyers that is part of the The American Recovery and Reinvestment Act of 2009 ...

* Tax credit equals lessor of 10% of the property's value or $8,000

* Effective for properties bought between January 1, 2009 and December 1, 2009

* The property purchased must be single-family (condos & townhouses included) and used as a principal residence for three years.

* There is an income limit of $75,000 per individual (adjusted gross income) or $150,000 if filing a joint reurn. Individuals above these salaries may still receive a portion of the tax credit. IRS Form 5405 will help to determine this.

* Only first-time homebuyers are eligible or the purchaser (and purchaser's spouse) must not have owned a principal residence in the last three years

* This tax credit does not have to be repaid if the property is purchased between 1/1/09-12/1/09 This tax credit can be used on all FSBO.com properties, as long as indviduals meet the federal criteria. This is just a basic summary, AcmeInstitute.com recommends you consult a tax professional for more specific information that may pertain to you, as several states also have local policies.

FAQ

If the seller pays part of the closing cost, does that reduce the basis for the credit?

The credit is based on the purchase price. No where on Form 5405 does the IRS require one reduce the purchase price to calculate the credit.

If the buyer had previously lived in a manufactured home in a park, would they qualify as a first time home buyer.

No, the credit is allowed on a manufactured home, therefore the IRS it a home for the purpose of this act.

If the house has to be sold before three years are the exceptions to paying back the grant?

1. The following are exceptions to the repayment rule. If you sell the home to someone who is not related to you, the repayment in the year of sale is limited to the amount of gain on the sale. When figuring the gain, reduce the adjusted basis of the home by the amount of the credit.

2. If the home is destroyed, condemned, or disposed of under threat of condemnation, and you acquire a new main home within 2 years of the event, you do not have to repay the credit. If, as part of a divorce settlement, the home is transferred to a spouse or former spouse, the spouse who receives the home is responsible for repaying the credit.

3. If you die, repayment of the credit is not required. If you filed a joint return and then you die, your surviving spouse would be required to repay his or her half of the credit.

The 2008, $7500 credit still exists. I will be posting more concerning this as time goes on.

Is your glass half full? Mine is.

2009-03-16T14:07:00.000-07:00

Recently, Warren Buffett (yes, I know I usually talk about the other Buffett) was interviewed By CNBC. “We’ve been getting thousands and thousands of emails from our viewers. Warren, we’d like to start with one that echoes a theme we heard again and again. This one comes from Terry in San Antonio, Texas, who asks, ‘Will everything be all right?’”

BUFFETT: “Everything will be all right. We do have the greatest economic machine that man has ever created. We started with 4 million people back in 1790 and look where we’ve come. And it wasn’t because we were smarter than other people. It wasn’t because our land was more fertile or we had more minerals or our climate was more favorable. We had a system that worked. It unleashed the human potential. It didn’t work every year. We had 6 ‘panics’ in the 19th century. In the 20th century we had the Great Depression, World Wars, all kinds of things. But we have a system – largely free market, rule of law, equality of opportunity – all of those things that cause the potential of humans to get unleashed. And we’re far from done. Your kids will live better than mine. Your grandchildren will live better than your kids. There’s no question about that. But the machine gets gummed up from time to time. If you take the bulk of those centuries, probably 15 years were bad years. But we go forward.”

After Buffett’s very upbeat, 3-hour interview? Various meda filtered out all kinds of affirming, positive statements (such as the one above) to create the headline, “Warren Buffett Says ‘The Economy Fell Off a Cliff.”

I cannot look at the world through those gloom and doom lenses. This time shall pass. True, for some it is a sudden shock. Things have changed. In Michigan, perhaps more radically than some of the rest of the country. Our real estate market is different form any we have ever seen. I have friends that have lost their homes. I have friends that have filed for bankruptcy. Even those friends have not lost hope. I prefer to surround myself with positive thinking people.

Lost Generation

2009-03-14T08:37:00.001-07:00

I came upon this on Youtube. It is a video that is powerful in its simplicity.

American Recovery and Reinvestment Act of 2009

2009-02-21T15:38:00.000-08:00

The National Association of Realtors posted a very thoughrough explanation of the stimulus package:

American Recovery and Reinvestment Act of 2009

H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
View how the U.S. House of Representatives voted>
View how the U.S. Senate voted>

The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.

The bill includes the following provisions:

Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Service
Low Income-Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits & Grants
Transportation Investments
Broadband Deployment

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit (PDF: 319K)

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and Realtors. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. NAR's Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers.

Estimated 2009 FHA, Fannie Mae and Freddie Mac Loan Limits> (PDF: 1.3M)

Back to top

Neighborhood Stabilization – Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2009 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.

How REALTORS® Can Contribute to Local Community (NSP) Efforts

Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
Back to top

Rural Housing Service

Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Back to top

Low Income Housing Grants - Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.
Back to top

Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Back to top

Energy Efficient Housing Tax Credits & Grants - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.
Back to top

Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
Back to top

Broadband Deployment - The bill creates $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broadband service in the U.S. Any entity is eligible to apply for a grant including municipalities, public/private partnerships and private companies as long as they comply with the grant conditions. The grants are subject to “network neutrality” requirements to ensure that broadband networks be free of restrictions on content, sites, or platforms, on the kinds of equipment that may be attached, and on the modes of communication allowed.

The bill also charges the FCC is with developing a national broadband plan that shall seek to ensure that all Americans have access to broadband capability and shall establish benchmarks for meeting that goal.

These provisions are important victories for REALTORS because increased broadband access promotes economic growth and expands opportunities for home sales. A 2006 Commerce Department report determined that property values are 6% higher in communities where broadband is available.
Back to top

TWO HIBISCUS BLOOMS

2009-02-08T08:01:00.000-08:00

TWO HIBISCUS BLOOMS

Life has been exciting and challenging. I was going to add the word "recently" to that last sentence, but came to realize that for me it has always been thus.

I am still having a little difficulty coping with the end of a marriage I thought was forever. With every ending is a new beginning. My sons have drawn me closer and as a result, my life is even fuller than it had been.

On the personal level, due to health problems with my children, I have had a chance to take on enhanced grandmother duties. One of my grandsons has named me GrandBa. When he speaks of me he refers to me as GrandMa, but he calls me GrandBa. Oh, well. As I have become more open, I have discovered more friends than I realized I had. I am discovering me. My life, like many I am sure, is divisable into four stages.

In stage one, I was someone's child. My grandmother made all of the major decisions for me.

In stage two, I was someone's mother. My decisions were guided by what was best for my children.

In stage three, I was someone's wife. My decisions were all aimed toward what would be best for us.

I am now in stage four. My decisions are pretty much what will be best for me. But in doing so, I am actually better for others. I have given myself permission to be the real me, always.

I have no one to tell me not to do something. I am therefore taking on a bit more than most would deem wise. For me, it is the right amount.

At present, I am expanding my teaching institute and taking on three new teachers. The Acme Institute is growing. It may soon give birth to the Acme Academy. Stay tuned for more on that. It is possible, we may expand and be more than just one of Michigan's top real estate schools.

I have been asked to teach for the country's news auction school. Dan Stone Auction School which will be conducte at Monroe Community College in March. In addition to being Chairman of the Michigan Board of Auctioneers, I am chairman of the Legislative Committee of the Michigan State Auctioneers Association. I am amazed that throughout two moves and many house cleanings, I never through out information that I would need to write a curicullum for an auctioneer class. I kept it all.

For leisure I am President of the Traverse City Parrot Head Club and working on our summer fundraiser to benefit those less fortunate. I am also taking over the position of Gate Chairman for the Original Dulcimer Players Fun Festival at Evart.

I was doing grandma duties in Saginaw last week when we received the wonderful news that my son's pancreatic tumor is non-malignant and very operable. Praise the Lord. He will have to have it surgically removed and remain in the hospital a full week. Recovery will not be quick, but I am assured all will be well. I have been contacted by many friends who are sharing in my prayers for him. I have quite a few non-traditional religious friends, so I should say "prayers and good thoughts".

Yesterday, I came home to a worderful sunny afternoon. As if to celebrate and say "Life is Good," I noticed my hibiscus had two blooms. It has five more ready to go any day. All summer long, it only gives me one a day. I second its motion. Life is Good!!! All in favor, respond by saying, "Aye!!!"

Getting a Real Estate License in Michigan

2008-11-30T05:09:00.000-08:00

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

2008-08-29T16:14:00.000-07:00

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.

A Great Week of Great Events

2008-05-30T12:02:00.000-07:00

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

2008-05-26T09:11:00.000-07:00

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

2008-05-06T03:28:00.000-07:00

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.

2008-04-15T15:57:00.000-07:00

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

2008-04-07T12:10:00.001-07:00

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.

2008-04-06T05:46:00.000-07:00

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

2008-04-04T03:50:00.000-07:00

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:

The property must have been occupied as a principle residence, classified as homestead property;
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
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

2008-04-02T02:51:00.000-07:00

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

2008-03-27T11:49:00.001-07:00

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!

2008-03-16T06:32:00.001-07:00

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

2008-03-15T05:30:00.000-07:00

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

2008-03-14T10:58:00.000-07:00

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

2008-03-12T04:06:00.000-07:00

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

2008-03-11T04:55:00.000-07:00

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

2008-02-23T11:22:00.001-08:00

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

2008-02-21T02:39:00.001-08:00

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

2008-02-17T12:48:00.001-08:00

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.co m

A Proverb

2008-02-13T08:39:00.001-08:00

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"

2008-02-12T12:04:00.000-08:00

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.

Business is Good in Real Estate in Michigan

2007-03-27T03:36:00.000-07:00

I am getting so tired of the media screaming gloom and doom. I attended a seminar in Saginaw in the mid-eighties? Are you old enough to remember the interest rates back then? I recall 16 or 18% with some as high as 22%. We hit 210 days as the average on market for those houses that sold. The only way to sell was land contract. Very few buyers had the income to afford $600 a month house payments. The speaker said, "Perception is Reality!" If you keep looking at the negative that is what you will get. He passed out these pins. I have started wearing mine again. Business is Good.
Yesterday I heard on the news that housing sales in Michigan were up 3.2% this past month. However, the average sales price was down 1.5%. Today on television I am hearing that housing sales are down across the country. Very possibly if you correlate those two figures there is a net negative, but I am going to look at the positive. Sellers are getting realiztic and aware of the principal of supply and demand. True, there is a lot of inventory out there. They have finally come to understand that if they wish to sell, they must price competitively. On the other hand, they have to live somewhere. Odds are, they will probably be able to pay 1.5% less than last year for their dream home. Business is Good.
From my viewpoint, class attendance in my Michigan real estate classes is down. I hear it is for all the other schools also. A couple of colleges actualy cancelled their real estate classes this semester. The number of real estate agents in Michigan has dropped. I am teaching a class of salesperson candidates next week and I will tell them they are lucky. They have chosen to enter one of the most rewarding careers available at the best possible time. If they get good training from their broker, they will be successful. There is less competition. In a couple of years when things turn back in a positive direction, they will have wonderful success stories to tell. Business is Good.
Having a few classes cancelled has been good for me. It has afforded me time to write the books I meant to write but never had the time. It has given me the opportunity to realize I do not have to work every day. I can plan for retirement. Business is Good.

Quote for the day

2007-02-08T19:56:00.000-08:00

I just got back from the Michigan State Auctioneers Association convention. My mind is still swimming with all the new ideas I picked up. I am working on my AARE designation. That stands for Accredited Auctioneer of Real Estate. The instructor for that course was awesome. What I find amusing is the fact that Manson Silk doesn't know how good he is. During the check-in time, he had a PowerPoint presentation running of sayings he had coined. There were about twenty. One stood out from all the others, "When is the last time you did something for the first time?"
That practically sums up how I do things. It just never occurred to me. When things are going along with no change, I usually pull a pin out of a hand grenade and pitch it out there into the future. Those of you that are my old friends know I changed companies last summer. With the change came the need to write text books. OK, I mastered that skill. Life is never boring if you leave yourself open to opportunities. I am at the point when I am studying the possibility of retiring and at the same time deciding to go for it in my career. Life is good. I have, however, learned to appreciate that which is important. I am definitely going to take a couple of weeks off this summer and open Camp Grandma in my backyard.

Ammunition for FSBOs

2007-01-25T13:34:00.000-08:00

The past couple of years, we have discussed in continuing education fee for service companies. It seems more and more sellers do not understand why they need us. I found the following statistic in the National Association of Realtors website:

The Cost of Selling without a REALTOR®: $31,800

Real estate professionals do more for sellers than make the transaction easier. They make them money. In fact, the average seller who uses a real estate professional makes 16 percent more on the sale of their home than do sellers who go it alone. That’s an average of $31,800 per home.

That’s one reason the level of unrepresented sellers has declined steadily in recent years. Despite five consecutive record-breaking years for home sales from 2001 through 2005, the level of unrepresented sellers has dropped from a cyclical peak of 18 percent of the market in 1997 to a record low of 13 percent in 2005, according to the 2005 National Association of REALTORS® Profile of Home Buyers and Sellers.

Real estate professionals assist both sellers and buyers with the services necessary for a successful real estate transaction, especially pricing and marketing. Real estate pros can help price the property accurately and market it successfully using the variety of tools available today -- Internet, print, word of mouth and more. REALTORS® know best how to prepare a home and maximize value, provide broader exposure to the market and are more likely to generate multiple bids than a seller on the own.

In addition, REALTORS® are experts in attracting qualified buyers. A professional can show a home more objectively than can a seller who may be emotionally attached to the home, and who might become unnerved by prospective buyers’ critical comments. The real estate pro also checks the financial capability and bona fides of buyers before allowing them onto a seller’s property.

Life Lessons

2007-01-23T16:39:00.000-08:00

Maybe one of these just might make a difference for you today, tomorrow, and/or forever.

By Regina Brett, Cleveland, Ohio

To celebrate growing older, I once wrote the 45 lessons life taught me. It is the most-requested column I've ever written. My odometer rolls over to 50 this week, so here's an update:

1. Life isn't fair, but it's still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone.

4. Don't take yourself so seriously. No one else does.

5. Pay off your credit cards every month.

6. You don't have to win every argument. Agree to disagree.

7. Cry with someone. It's more healing than crying alone.

8. It's OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.

10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won't screw up the present.

12. It's OK to let your children see you cry.

13. Don't compare your life to others'. You have no idea what their journey is all about.

14. If a relationship has to be a secret, you shouldn't be in it.

15. Everything can change in the blink of an eye. But don't worry; God never blinks.

16. Life is too short for long pity parties. Get busy living, or get busy dying.

17. You can get through anything if you stay put in today.

18. A writer writes. If you want to be a writer, write.

19. It's never too late to have a happy childhood. But the second one is up to you and no one else.

20. When it comes to going after what you love in life, don't take no for an answer.

21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.

22. Over prepare, then go with the flow.

23. Be eccentric now. Don't wait for old age to wear purple.

24. The most important sex organ is the brain.

25. No one is in charge of your happiness except you.

26. Frame every so-called disaster with these words: "In five years, will this matter?"

27. Always choose life.

28. Forgive everyone everything.

29. What other people think of you is none of your business.

30. Time heals almost everything. Give time time.

31. However good or bad a situation is, it will change.

32. Your job won't take care of you when you are sick. Your friends will. Stay in touch.

33. Believe in miracles.

34. God loves you because of who God is, not because of anything you did or didn't do.

35. Whatever doesn't kill you really does make you stronger.

36. Growing old beats the alternative -- dying young.

37. Your children get only one childhood. Make it memorable.

38. Read the Psalms. They cover every human emotion.

39. Get outside every day. Miracles are waiting everywhere.

40. If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.

41. Don't audit life. Show up and make the most of it now.

42. Get rid of anything that isn't useful, beautiful or joyful.

43. All that truly matters in the end is that you loved.

44. Envy is a waste of time. You already have all you need.

45. The best is yet to come.

46. No matter how you feel, get up, dress up and show up.

47. Take a deep breath. It calms the mind.

48. If you don't ask, you don't get.

49. Yield.

50. Life isn't tied with a bow, but it's still a gift.

What is an Auction

2007-01-12T05:33:00.000-08:00

I was at a Realtor's reception last night and I realized in conversation that there is some confusion as to what an auction may be. Or for that matter when auction should be considered.

History has shown us that a professionally conducted public auction is a type of “sale” that equates to the white heat of selling, fetching the highest possible fair market value for the assets offered on any given day or place. But what constitutes a “professionally conducted public auction?”

First of all, what is not an auction. At first the task is easy; a partial list would be tag sales, garage sales, yard sales, fire sales, one-day-only sales and discount/percentage-off sales. All major retailers have periodic sales: “no money down,” “no payments until…,” “no interest,” etc. However, the question becomes a little more difficult to answer when we look at words like “eBay,” “foreclosure,” “warehousemen’s lien,” and “sealed bid.” All of these terms have been associated with the word “Auction.” The question is, Are they sales or are they professionally conducted public auctions?

The answer would be revealed only after identifying and agreeing upon the elements of a professionally conducted public auction. Once that they have been established, we could test all of what we think are “auctions” against that criteria.

A professionally conducted public auction of any asset should include at least the following eight elements: 1) A viable market: If there is not a viable market of interested, qualified buyers, there is no chance of a professional Auction succeeding; 2) Auctioneer: A competent, trained person taking full responsibility for formulating and executing the overall plan; 3) marketing plan: A strong campaign with “target marketing” to the appropriate audience; 4) Good exposure to the proper market: Enough time prior to Auction Day for the buyers to find out about the Auction and do their due diligence regarding the assets for Auction; 5) A public preview: Ample opportunity for public viewing and inspection prior to bidding; 6) Published terms and conditions: Clear, concise, fair rules of the Auction that apply to all participants; 7) Full disclosure: Disclosure to all interested parties of the facts pertaining to the assets up for Auction; 8) Public Auction: On the advertised date and time, all qualified bidders or their proxies assemble and have the opportunity to bid competitively until there are no more bids remaining.

Registration for Auctioneers

2007-01-07T15:04:00.000-08:00

This is pretty exciting. I lobbied for licensing for auctioneers in the eighties. I thought I would never see this day. My predecessors had been working on it for decades. This just in:

STATE AUCTIONEERS MOVING AHEAD

Lansing, Michigan - State Capitol - On Friday, December 29th Governor Jennifer Granholm signed into law a set of bills now referred to as Public act 489 and Public act 490 of 2006 respectively. The Auctioneer Registration Bills were introduced by Senator Ron Jelinek of Three Oaks and Representative Hoon-Yung Hopgood of Taylor. Since 1958, the Michigan State Auctioneers Association has struggled to enact legislation to protect the public and to allow the association to form a bond of reciprocity with other states, namely ones which surround Michigan. It is the intent of these bills to help organize the membership of the MSAA in a concerted effort to better serve the public in a professional and lawful manner.

A Few Highlights of the Act include:
• Creates a new voluntary registration program for auctioneers
• Auctioneers would not be required to be registered through this program
• Record keeping requirements imposed on registered auctioneers
• Requires a written contract between a registered auctioneer and client
• Requires a registered auctioneer to establish a trust account
• Includes numerous consumer protection provisions

Chairman of the Legislative Committee of the MSAA, Michael Bliss GPPA of Mt. Pleasant, says “The bills will enable the auctioneers of the state and also of other states to work together in a more uniform manner. It brings more easily regulated consumer protection measures to clients who hire Registered Auctioneers and creates a higher code of conduct to give more assurances to the public.”

Any Auctioneers that wish to know more about the new legislation or becoming members of the Michigan State Auctioneers Association are urged to attend their Annual Conference held at the Radisson Hotel in downtown Lansing the week of January 31 to February 4, 2007. The Conference boasts the MSAA State Bid Calling Championships and several days of educational seminars and classes designed for the aspiring auctioneer. You can also get more info Online at www.msaa.org or by calling the MSAA Office at (616) 785-8288 or by calling Mr. Bliss at (989)772-7066 in Mt. Pleasant.

***

With approximately 400 members, the Michigan State Auctioneers Association is one of the leaders in the industry, and is proving to continue in that direction in the future. The Michigan State Auctioneers Association is the largest representation of auctioneers in Michigan. The MSAA represents the interests of the Auctioneers, providing a forum for networking, sharing ideas and experiences. The MSAA expects to grow in membership with the passing of these bills. For more information about the Michigan State Auctioneers Association, the auction industry in Michigan, and to find auctions or auctioneers, log onto www.msaa.org.

Obstacle vs. Opportunity

2007-01-04T06:05:00.000-08:00

I have one major flaw. I am a bit too goal oriented. When I establish a goal and someone or something chooses to interrupt that goal, I have very little patience. I reasses that goal and consider if I could be just as satisfied with a substitution. If I answer, "Yes", I set a different goal.

A couple of years ago a book came out entitled, Who Moved My Cheese? by Spencer Johnson,MD. It is about is about change and how people react and respond to change. Briefly, the book talks about four people who find their way through a maze to a large cache of cheese. Each day they find their way back to the cheese and eat happily away. They become accustomed to finding the cheese in the same place, and come to expect it. One day, as you might have guessed, the cheese is gone. No more cheese. The four people, Sniff, Scurry, Hem and Haw, react quite differently to the new situation. As you read through the book, you see yourself in one or more of the people. It allows for some interesting reflection.

In my youth, I was "Scurry". I would panic and throw a bit of a fit. I was hoping to knock down the walls of the maze and any windmill in the way. Now, I do not waste my time. I reassess my goal and set my path down the new maze. In short, I change the obstacle to an opportunity.

I would have liked to have posted my classes for 2007 to the web weeks ago, but I have encountered obstacles. I have written material for some new classes and it frustrates me that I cannot even talk about them until the Department approves them.

I have encountered sales and catering at banquet facilities that never return calls or emails. I was going to use one recommended facility in Toledo, but after 6 days of non-returned calls and emails I chose the Wyndham. The director of sales was most accomodating on the phone (at 5:05pm) . This renovated riverside hotel looks charming on the internet. I am goin to give it a try.

Exciting Day

2007-01-03T06:52:00.000-08:00

I feel sorry for those folks that don't wake up excited to start the new day. For me, it seems that every day is exciting. My goals from yesterday did not get accomplished. I was relying on the sales departments of the various conference facilities to check their messages. Silly me. I will start that one over today. I am 80% done.

Of, course, nothing is as constant as change. I may have to revamp my schedule a bit to work in Code of Ethics training for Realtors. That is exciting. I will get to meet some new people. Some people hate online continuing education, so we can accomodate them in person. I have verbal approval from the National Association of Realtors (where did I put that "Easy Button"?) to use their material. We must submit it to the Department so it will also count for continuing education and we are good to go.

Today's goal is to go out to the various offices in the Antrim county area to promote a motel I am selling at auction on January 13. Hopefully, the call backs from the conference facilities can reach me in the remote cell area. Do any of you have a buyer that needs a motel in Mancelona, Michigan. Go to www.besnerauction.com/cornellauction.htm for more information.

New Year

2007-01-02T05:09:00.000-08:00

Things are going to be great in 2007. I am serious. It is all about perception. I attended a seminar about 20 years ago in Sagin aw, Michigan. Mortgage rates were about 18% at the time. The average days on the market for homes that sold was about 210 days. The speaker said that "Your perception is your reality." He passed out pins that said, "Business is Good". I just came across mine a few weeks ago and I am going to start wearing it on a regular basis.

You have to set goals. I don't mean goals for today. You need to have a today plan and also ask yourself where you want to be in one week, one month, one year and one decade. If you don't know where you are going, how will you know when you get there? If, however, you know where you want to go, you will find doors opening for you.

This day, I will complete my schedule for this year.

This week, I will determine what it takes to get my real estate fundamental text book published.

This year, I will strive to be the very best teacher possible. Hopefully, I will be able to get many new salespersons and brokers on the right track. I will also write an online prelicense class and maybe some broker classes.

This decade, I will work toward being able to relax more. Hopefully, I will be able to remain up to date on new methods of learning. I wish to make a difference. If I can continue to pass along my enthusiasm for life by sharing information, I will be a happy woman.

This is the first in a long series of posts,

2007-01-01T17:00:00.000-08:00

I have been very busy the past few weeks researching material for two real estate law books. In my research, I have read many interesting facts that I believe my students may wish to know. I am starting this as a platform to share ideas and also to keep my friends posted as to my class locations.

Gwyn's Classes, Thoughts & News

HUD's RECENTLY PUBLISHED TIMELINE

$8,000 First Time Home Buyer Credit

Is your glass half full? Mine is.

Lost Generation

American Recovery and Reinvestment Act of 2009

American Recovery and Reinvestment Act of 2009

TWO HIBISCUS BLOOMS

Getting a Real Estate License in Michigan

Continuing Education Michigan Real Estate

A Great Week of Great Events

Five Kinds of Lilacs

Code of Ethics and Blogging in the 21rst Century

Michigan Real Estate Legislative News.

The Horoscope

More Info on Save the Dream.

Transfer Tax News

Save the Dream

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

I Love My City!

The Future of Real Estate in Michigan

IRS Ruling 1031 Exchanges on Vacation Property

Let’s Stay Optimistic

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

Traverse City Real Estate

Realtors: Sales decline skipped Michigan towns

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

Caution Light, Fraud Alert

Boat Building

A Proverb

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"

Business is Good in Real Estate in Michigan

Quote for the day

Ammunition for FSBOs

The Cost of Selling without a REALTOR®: $31,800

Life Lessons

What is an Auction

Registration for Auctioneers

Obstacle vs. Opportunity

Exciting Day

New Year

This is the first in a long series of posts,

by The Associated Press
Monday March 10, 2008, 6:17 PM