One of the major culprits of the current financial crisis, in my opinion, has been a complex and little understood accounting principle. This accounting principle is called “mark to market”.   I am no accountant and will be the first to admit I don’t fully understand this hideously complex financial accounting standard. So I have to think of it in terms I understand.   For the purpose of this prose let’s suppose you live in a sub-division. You bought your home for $250,000. Your current mortgage balance is $200,000. You are paying your mortgage payments on time and you have no intention of selling your home.   However, the terms of your mortgage is such that every three months the value of your home and your outstanding mortgage balance is subject to “mark to market” accounting.   Durin... 04/04/2009

I wanted to follow up our blog post, Should Empty Nesters Downize Their Greenville Homes? with a reprint on a Money Magazine article from CNNMoney.com, When It's Wise to Downsize. The article discusses the pros and cons of downsizing, pricing in today's market, carrying costs involved and lessons learned from other empty nesters.  Here is the article in its entirety (but don't hesitate to visit the link to the original article to see the interesting graphs):  (Money Magazine) -- Last year Rick and Suzanne Pepin moved from the four-bedroom 3,400-square-foot house in Minneapolis where they lived with their three (now grown) kids to a luxury condo that's a third smaller and offers only a Murphy bed for guests. Still, the couple couldn't be happier. "The location of our old home dictated th... 03/30/2009

This week FHA issued a mortgagee letter to respond to declining markets. These changes go into effect for all FHA appraisals beginning April 1, 2009. This aligns the FHA appraisal requirements with FNMA which also requires new reporting as of April 1.   Appraisers are currently expected to note the trend of property values. Are property values increasing, stable of declining? They are to provide conclusions as to the supply of properties in the subject neighborhood. Is there a shortage, in-balance or over supply of homes for sale? Additionally appraisers are to provide data of the marketing time for properties for sale. Is it taking under three months, three to six months or over six months to sell the property?   All appraisals performed beginning April 1 must include the Fannie Mae fo... 03/28/2009

When the kids are gone, many empty nesters think about downsizing their Greenville homes. But is buying a smaller home right for you? There are pros and cons to downsizing. Consider your finances and lifestyle before making a decision. Reasons not to downsize: You want a place for your children and grandchildren to stay when they visit. The family is spread all across the country and you want to have a place for everyone to gather for the holidays and vacations. You can't bear to part with your cherished belongings. You have been in your current home for many years and have filled it to the gills with mementos you don't want to part with. You aren't you emotionally ready to leave? You are not ready to pack up and leave a lifestyle you worked hard to create. Leaving family, friends and f... 03/23/2009

If your looking to move to Greenville, North Carolina or other surrounding areas of Pitt County, NC, you've come to the right place. We have the largest selection of Greenville, NC real estate listings and homes for sale.   Our subdivision guide contains over 231 of the counties subdivisions.  From the established to the new, the starter home to the dream home, we have it all inside! Visit us at: www.GreenvilleMove.com   03/22/2009

I recently completed a six part review the Homeowners Affordability and Stability Plan. In many of these posts, I mused about the Unintended Consequences that may be associated with elements of this plan.   As a disclaimer I must inform you this six part series was written between the time of the announcement of the plan and the March 4th date of details being released. I will need to conduct further review now that details have been released. I took a break and wrote about other subjects last weekend and Good News I’ve been really busy with my day job, originating mortgages in Greenville, NC.   The Obama administration, in the Affordability, section of the plan advanced the concept that borrowers with loan to value exceeding 80% could not benefit from the current refinance environment.... 03/14/2009

2009 is proving to be a good year for Greenville real estate home buyers. Lower prices, near record low interest rates, high inventories and an $8000 tax credit are all working in the favor of home buyers. Those home buyers making good long term financial decisions will reap the benefits of the currently soft market for years to come. Here are 5 Greenville real estate home buying tips for the remainder of 2009. 1. Think long-term We may see soft prices for in the short-term, but real estate like other markets, is cyclical. Over the long haul, the market will bounce back and prices will rise. 2. Think local Real estate is local. Ignore national headlines and listen to your local real estate expert. The real estate market in Columbus OH is not the same as the real estate market in Greenvi... 03/13/2009

This news article was posted in yesterday's News and Observer.  Now it is more important than ever to pick a real estate company that has longevity.  Allen Tate will be closing a quarter of their offices.  However, they are not leaving any markets.  There are no Allen Tates in the Greenville Market Center.  http://www.wral.com/news/state/story/4711426/   For an agent and a company that gets results, call Katie Evans at Keller Williams (252) 341-5052. To search for homes, please visit my website www.greenvillehomesnow.com.      03/12/2009

If you are thinking of selling your Greenville home this spring, now is the time to start getting ready to sell. Below are 5 things to do before putting the ‘For Sale' sign in the yard:  1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you'll be able to make repairs before open houses begin.  2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the ho... 03/10/2009

The news media reports tell you that home values have experienced the largest declines in many, many years. Has this become an obstacle in your decision for purchasing a home?   I can understand your anxiety. Who wants to purchase a home when you believe it will immediately decline in value?   Understand this, real estate is local!! The new media reports national trends. Very rarely, if ever, do they dig deeper through the report.   Just a few days ago the Federal Housing Finance Agency published the latest Housing Price Report for the quarter ending December 31, 2008. Yes, this report disclosed that the purchase-only price index fell 3.4% in the fourth quarter. This is the largest quarterly decline in the 18 year history of this index. The all-transactions index, which includes apprais... 03/08/2009

Not so long ago helping the environment meant recycling plastic and newspapers, but today it has evolved into "green" thinking and extends to our homes and our living environments.  According to a recent NAR survey, nine out of 10 Realtors® said their clients are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now.  Results of a Harris Interactive poll by Move, Inc. show potential home buyers consider "green" building features more important than luxury amenities. Almost half of the adults surveyed (49 percent) said features such as solar panels or energy-saving appliances were "important," compared to just 31 percent who rate... 03/03/2009

The final component mentioned in the Stability section of the White House housing plan has a stated goal of supporting local communities. Information concerning this in the Executive Summary is, at best, sketchy. We will want to review the details, once they are released March 4th.   Strengthening FHA Programs and Providing Support for Local Communities   Ease restrictions in Federal Housing Administration Programs, Including Hope for Homeowners Strengthening Communities Hardest Hit by the Financial Housing Crisis     The current Hope for Homeowners, as I understand, has experienced limited success. This initiative was designed to assist struggling homeowners with an avenue for refinancing. Under the Obama plan, the following issues are to be addressed: Reduce fees paid by borrowers Pro... 03/01/2009

These can be difficult times for some Greenville homeowners. Current economic conditions are placing a great deal of pressure on family finances. There may be better options for you than bankruptcy or foreclosure. These options may enable you and your family to get back on your feet much quicker and with much less stress and heartache. It is our belief that individuals and families come first! We have received specialized training to provide you with information and options you must have to make an informed decision. We have a compassionate team of professionals to aid you. Our goal is to help families and individuals one home at a time. This is our responsibility, our duty and our commitment to our community.  Click here to download your free report regarding Foreclosures and Short Sal... 02/28/2009

I have been breaking down the Homeowner Affordability and Stability Plan and providing a review of the plan’s various components. We are awaiting more details to be provided by the Administration, due to be released March 4th. The source of this review comes from the White House.   The component I am reviewing today is one for which I have great trepidation. I’m interested in hearing what you think.   Allowing Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options   This provision will allow bankruptcy judges to modify mortgages. (OH MY!) The portion of mortgage loan balances in excess of mortgage balances will be treated as unsecured debt The judge will then develop an affordable plan for homeowners to continue making payments Homeowners mu... 02/28/2009

The details of the President’s Homeowner Affordability and Stability Plan are to be announced on March 4th. I have been reviewing the executive summary and fact sheet for the plan which is posted on the White House web site. Click here for your reading enjoyment.   Under the stability section components 2 (B&C) read as follows 2(B) Clear and Consistent Guidelines for Loan Modification 2(C) Requiring All Financial Stability Plan Recipients to Use Guidance for Loan Modifications   Clear and Consistent Guidelines for Loan Modifications   The premise for this component is that mortgage servicers, in some cases, have not common sense loan modifications for fear of incurring lawsuits. The fact there have not been consistent guidelines that pertain to everyone opens the servicers up to litigat... 02/27/2009

Check out the new listing located in the new subdivision of Allen Ridge, located on Allen Road just minutes from the medical district. This new subdivision qualifies for 100% USDA financing with no PMI, this is a great deal for the first time home buyer. Visit us at www.JesseAllenHomes.com for more local listings in the Greenville / Pitt area. 02/27/2009

  HOW LONG WILL IT TAKE TO SELL? Sold within:Percentage of Homes 1 Month 40% 2 Months 7% 3 Months 7% 4 Months 20% 5 Months 10% 6 Months 7% 7 Months 9% If your property isn't sold within 30 days, a price adjustment should be made! Statistics are based on National average of homes sold.  I get this question all the time on listing appointments so I put together this chart that helps clients see the National averages of home that are selling. Its important to remember that this is just a guide some areas sell much faster than others. For more free home info check us out at www.JesseAllenHomes.com . 02/27/2009

Reviewing the Housing Affordability and Stability Plan I intend to dig a little deeper in the leg directed toward stability. This initiative creates $75 billion to reach up to 3 to 4 million at-risk homeowners. Oh my!!!   I wrote about the affordability section earlier and you can view that post by clicking here. I also have written an overview of the stability component. You can view the entire plan by going to the White House web site.   Section A of the stability component is an initiative to reach up to 3 to 4 million at-risk homeowners. This is being presented as a shared partnership to help people “struggling” to meet their mortgage payments. It also strives to help stabilize home prices. Sounds noble, but how is it supposed to work?   Who is this program designed to reach?   At-r... 02/22/2009

This week President Obama announced the Homeowner Affordability and Stability Plan. You can view a summary of this plan on the White House web site. Additional details are to be forthcoming on March 4th.   The three legs of this plan are: Refinancing for up to 4 to 5 million responsible homeowners to make their mortgages more affordable A $75 billion homeowner initiative to reach up to 3 to 4 million at-risk homeowners Supporting low mortgage rates by strengthening confidence in Fannie and Freddie Mac   Earlier I wrote a blog on the 1st leg, refinancing. Now I would like to share with you information on the second leg, stability! This component actually includes 5 sections. I will further elaborate on some of these sections in future posts.   A $75 billion homeowner stability initiative... 02/22/2009

The White House, this week, announced the Homeowners Affordability and Stability Plan. An executive summary of the plan may be viewed on the White House web site.   President Obama’s plan for the housing market consists of three components: Refinancing for up to 4 to 5 million responsible home owners to make mortgage payments more affordable A $75 billion homeowner stability initiative to reach up to 3 to 4 million at-risk home owners Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac   Today I want to address the first component of Obama’s plan. Understand that the final directives of this plan are to be announced on or around March 4th. Specifics and changes to the plan are to be addressed then.   This writing expresses my views, opinions, agreemen... 02/21/2009