JP Morgan/Chase announced Friday that it will be temporarily suspending foreclosures and has instead turned its efforts to modifying loans to make them more affordable for homeowners so that they will not leave their homes.

 A big part of the troubled mortgage loans come from the recent acquisition of Washington Mutual which has been a long-time top lender in all areas of Oregon including Portland, Bend, Eugene, Salem and Medford.

Large banks are looking to put to use the bailout funds issued last month.

It also appears that unlike most modification programs offered by lenders, a homeowner does not have to be delinquent on his/her mortgage in order to receive help.  The practice of only helping those who have fallen behind on their mortgages has bee criticized recently, so I think this is a good step.

On October 10, 2008, the President signed S. 3023, the Veterans’ Benefits Improvement Act of 2008. Following are the three major impacts to the VA Home Loan Guaranty Program:

1. Authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs) has been extended through September 30, 2012.

2. The maximum guaranty for cash-out refinance loans has been made the same as purchase loans - they are no longer limited to $36,000. In addition, cash-out refinance loans may now be made up to 100% of the appraised value of the home.

3. The temporary increase to the maximum guaranty has been extended through December 31, 2011. When combined with new locality-based Freddie Mac conforming loan limit in January 2009, VA’s maximum county “loan limit” will be $1,094,625 ($1,641,937.50 in Alaska, Guam, Hawaii, and the Virgin Islands). This results in unique county “loan limits” for VA.

This notice is meant to provide general information regarding the major impacts of the recently passed legislation. Click on this link for more detailed information and guidance.

The big housing bill of 2008 has the government providing incentives in the from of “Tax Credits” to first-time home buyers who purchase homes between April 9th, 2008 and July 1st, 2009.  Income limits of $75,000 household income for single filers, and $150,000 for couples filing jointly apply.

The credit really amounts to an “interest free loan” from the government that would be repaid in equal installments over a 15 year period.

For example let’s say you are a first-time home buyer and you purchase a home in December of 2008 for $200,000.  At this loan amount you are entitled to receive your $7500 tax credit when you file your 2008 tax returns in early 2009.  Then each year after you would be required to “repay” the credit when filing subsequent tax returns in the years following.  In our example this would equal $500 minimum payment per year and if you sell your home before the 15 years is up you would need to repay the unpaid portion in the year following your sale when filing your tax returns.

What I like about this program is that often I see first-time home buyers drain their savings accounts when coming up with down payments and closing costs when purchasing their home.

This tax credit (loan) would help to replenish this savings account and feel more comfortable.

Also, family members often would like to help each other out when buying a home, but the family member who is loaning the money out is concerned about repayment.  By knowing that the loan may be a shorter term since the home buyer will be receiving a credit they may feel more comfortable in assisting.

The only issue I see with this program is that it intermingles loan origination with tax benefits/consequences and since I am not a licensed CPA I can only tell you to make sure you not only ask questions from your loan officer, but to also seek the advice of a qualified tax professional.

Current Rates: 5.50% / 5.609% APR or 5.375% / 5.53%APR Click here for more info

Isn’t it amazing.  Every day the innovation that’s in the works just blows me away.

My latest fascination if the technology of mapping, and more specifically the “street-view” that is working it’s way across the world. You will soon not only be able to find pictures an aerial views in your home search, but will be able to see every home in the neighborhood as if standing in front of it.

If you haven’t checked it out, here’s a link to Google’s Portland, Oregon version.  Portland street views.

I found a great article on Yahoo News today (College Towns:Still A Smart Investment) which goes with some of my other postings about how there are “mini-markets” of real estate that just don’t follow what the larger real estate markets may be doing. 

Those who live in Eugene (home of the University of Oregon) are well aware that the prices of housing near or around the campus have held up very well in comparison to other areas in Eugene, and demand remains strong for these properties as evidenced by days on the market in this area being the shortest on average.