HAPPY VALENTINES DAY!

The best valentines day gift we could get this year would be housing relief. The government and the banks still don't get it! Bail out money and buying toxic assets is all wonderful, but it's not going to solve the problem. Housing got us into this mess, so we have to fix the housing problem at the root level. It's big, but it's not complicated. Here's the deal. Foreclosures are out of control--I read in the paper today that some expert predicted we could see as many as 10 million foreclosures before this thing is over.

Here's the fix. Every homeowner who is delinquent on their house payment must be evaluated for hardship. And there are only three options: 1. If the homeowner is delinquent due to their own fault, the bank should foreclose. It's not the best option, but it is the law. 2. If the homeowner is experiencing economic hardship, due to job loss, adjustable rate mortgage, or other outside influence, they should apply for a loan modification. A loan modification is where the bank agrees to reduce either the interest rate, the principal, or change the terms of the loan to benefit the homeowner. 3. If the homeowner cannot qualify for a loan modification, then the best solution is a short sale to avoid foreclosure and remove the asset from the marketplace and the bank's inventory.

Like I said, it's a big problem, but it's not complicated. Unfortunately, the banks and the government make it more complicated than necessary and therefore exacerbate the problem.

So it's a volume problem. How do we process millions of homeowners in a timely manner? Well, there are lots of people unemployed who have adequate financial skills to evaluate homeowners, and with a little training, you'd have a ready, willing, and able workforce. Hmmmm, that's interesting. How come nobody's talking about that?

If you have questions about foreclosures, loan modifications, short sales, investor deals, or market conditions, please contact me. Happy to help!

TAX CREDIT FOR FIRST TIME HOME BUYERS

The United States Senate unanimously passed a bipartisan amendment to the Economic Stimulus Bill creating a $15,000 tax credit to individuals who purchase a home in the next year.
Specifically, the amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation's enactment, and the tax credit would not have to be repaid.
The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.
While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in efforts to stabilize housing markets around the nation. We expect the final Economic Stimulus Bill will contain several major housing provisions. We will continue to update you as the bill progresses through the legislative process.
If you have any questions about the new tax credit or need help finding housing in Colorado, please call me or visit my web site, www.chipbruss.com.

KELLER WILLIAMS BUCKS THE TREND

Keller Williams Realty Bucks National Business Trends During the Toughest Real Estate Market on Record.



Bailout. Credit crunch. Foreclosure. Despite these words permeating the headlines and airwaves, there are companies out there moving forward - even in real estate. Keller Williams® Realty Inc., the fourth largest real estate company in North America, announced that it outpaced the market in 2008, while remaining free of debt, and gave back more than $30 million in profits to its agents.

“Our strategy is no secret. We faithfully follow the sound financial model of leading with revenue - the same model our market centers follow,” said Mark Willis, CEO of Keller Williams Realty Inc. “As we watch companies throughout the country take on billions of dollars of debt, we are proud to say that our company has not one dollar of financing debt and we remain strong and financially sound. It is our joy to be able to give back to our agents during these times.”

Despite pervasive downward trends in the real estate industry, Keller Williams Realty continues to outperform the industry. For the first 11 months of 2008, existing home sales for the United States fell 17% when compared to the same period the year before. By comparison, Keller Williams Realty is poised to outdo those numbers by 10 percentage points, and in addition, the company experienced a much smaller contraction in its agent base compared to the National Association of REALTORS®, who saw a 10% decline in membership.

“Keller Williams was founded 25 years ago during one of the toughest markets on record - when interest rates were higher than 18 percent. We continue to urge our agents to zero in on lead generation and reducing expenses so they can thrive during this market,” said Mary Tennant, president and COO of Keller Williams Realty Inc. “We admire our agents’ spirit, tenacity, and dedication to their businesses. They just keep powering forward.”

Throughout 2008 Keller Williams Realty launched new products and services specifically to boost its agents’ businesses, including two new books: Your First Home: The Proven Path to Home Ownership for first-time home buyers, and SHIFT: How Top Real Estate Agents Tackle Tough Times. Both books are written by Gary Keller, co-founder and chairman of the board of Keller Williams Realty, who also authored national best sellers The Millionaire Real Estate Agent and The Millionaire Real Estate Investor.

REPRINTED FROM RISMEDIA. For more information, visit www.kw.com.