All over the country, foreclosures are up for the 9^th straight quarter. A report last week by the Mortgage Bankers Association listed that 14 percent of homeowners with mortgages are either behind in their payments or headed for foreclosure. In response, it has been announced that there some changes to its “Home Affordable Modification Program,” originally launced in February of this year.  The original program was meant to incentivize the banks to create loan modification programs for those who needed them.  Under the plan, lenders who agreed to lower payments for troubled borrowers were to be paid $1,000 initially for each loan.  That was to be followed by $1,000 annually for up to three years.

Read more on New proposed changes to help distressed homeowners…

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With rates hovering near historical lows, a mortgage of $350k (principle and interest) will run around $1847/month at a rate of 4.85%.  If rates go up to 6% next year that same mortgage will now run you about $2100.00 (principle and interest).  That is a difference of $253 per month!  OR if you are qualified up to $350k now and rates go up to 6% next year, then at that time you will only be able to buy a home for $308k to keep your payments the same they would be at the previous $350k with a 4.85% rate.  That will be quite a change in what you can buy for the money! Here is a helpful (and somewhat corny) video that explains it even better.

Read more on LOW Rates = LOW Payments…

If you were kicking yourself for not jumping in while you had the chance, it’s time to start patting yourself on the back. The previous credit provided up to $8,000 to homebuyers who had not owned a home in the past 3 years, and whose income was $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns. For home purchases occurring after November 6, 2009, the new income limits are $125,000 for single taxpayers and $225,000 for married couples filing jointly. That definitely helps folks around the Puget Sound, and I look forward to helping many of you take advantage of this opportunity in the next few months.

Read more on The $8,000 Tax Credit has been extended!…