Congress failed to extend the FHA and GSE Loan Limits.  On October 1, those limits will decline in 669 counties in 42 states.  The new limits will now be equal to 115% of median home price (down from 125%), and the high cost gap will fall from $729,750 to $625,500.  NAR has a guide available to determine the new loan limits and it is available on REALTOR.org:
http://bit.ly/rdMC6x If your county isn’t listed, your limits will not change.  NAR continues to work with Congress to get the higher limits restored.

Most borrowers make zero down payments even on jumbo loans and the VA imposes no minimum credit score, yet originations are up and the delinquency and foreclosure rates are low.

Read more http://alturl.com/d2en3

The California Association of Realtors Wednesday delivered a public reprimand to the nation’s top mortgage lenders and servicers over their handling of short sales.

http://alturl.com/8t3oh

Former FSBO CEO sells home the traditional way

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the DIY route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.

Many FSBOs turn to Realtors

The news stands as an enormous validation of the real estate profession and while some may tease, it is no laughing matter and the former FSBO CEO made a good financial decision.

AGBeat columnist Herman Chan said, “If people want to take a stab at For Sale By Owner (ie FSBO), go for it. But well over 80% of FSBO’s eventually have to list with an real estate agent to get their house sold. It’s harder than it looks!”

Not a new dilemma

Marlow Harris, Seattle Residential and Investment Consultant at Coldwell Banker Bain Associates told AGBeat, “The ForSaleByOwner.com founder’s dilemma is one we see quite often and is not unusual. Trying to sell your own property yourself or using a discount brokerage, is not the solution for everyone. Unusual properties, properties in the higher price range, these are more difficult to sell and often require specialization.”

Harris continues, “We see these choices across the board, from single family homes to huge housing developments. For instance, Vulcan, one of Paul Allen’s companies which has invested heavily in Redfin, does not use Redfin to market their many condominium projects. They use traditional real estate firms such as John L. Scott, Williams Marketing and Matrix Real Estate, finding that the do-it-yourself approach to real estate just doesn’t work for these types of sales.”

Here is a link to direct assistance for California Homeowners that need help.

http://keepyourhomecalifornia.org/

The secretary of the Treasury says taxes must be raised on small business so the federal government can stay big. With that breathtaking statement, he helpfully mapped out the key difference between the parties. Read more…

Small Business And Big Gov’t – Investors.com.

The above was declared in a recent Wall Street Journal article. http://alturl.com/bm5xm  My response ..No Kidding!  The WSJ article assigns blame on agents not providing timely updated information.  Maybe sometimes.  More often however, this problem is created by listings being syndicated to third party sources and ending up on sites like Overstock and other less than real estate related sites.  The fact is these “other” sites claim over 9 million real estate listings.  The problem is we currently have about 3.2 million listings in the entire United States.  So about 6 million listings that are out of date.  Not good and we in real estate get the blame.

I suggest we in organized real estate rethink who gets access to our listing data.

Many housing proponents say the government’s move to dismantle Fannie Mae and Freddie Mac means the most popular home loan will be more expensive. But how much more is a matter of debate.

Will the move to dismantle Fannie Mae and Freddie Mac mean the end of the 30-year fixed-rate mortgage as we have come to know it?

Read full article:

http://articles.latimes.com/print/2011/may/15/business/la-fi-lew-20110515

I think we will continue to see absorption in pockets. Sales will continue in desirable neighborhoods and good schools districts. Qualified buyers know they will need to stay long term in their purchase and as a result they won’t settle for a home that does not meet their long term needs.

http://www.ocregister.com/articles/market-298515-realtors-association.html