Bellevue WA real estate listings and homes for sale, home buying, home selling information

FHA RAISING LOAN COST 1/20/10

And that's not all. Buyers must have a 580 FICO score now, or better, to get that loan for 3.5% down. If you don't have a 580 FICO score, the down payment is going to go to 10% instead of 3.5%. They are raising the loan insurance from 1.75% of the loan to 2.25%. The buyers will usually wrap that amount back into the loan and finace it. The FHA is also reducing seller concessions from an allowable 6% down to 3%. That will also force buyers to bring more money to the table, because they won't be able to get help from the seller. The Only loans out there at "0" down now are a VA, or government loan for low income like a Rural Developement loan........They are pretty complicated, but "0" down. I just had a client that we used one to buy a house in Puyallup. A short sale to boot.

MY 2010 PORTFOLIO

I'm a little worried about an adjustment coming to the DOW here in the VERY NEAR TERM. I can feel a drop back to 9700 to flush out the longs. The market went from a low of 6500 to 8900 (+2400) and then corrected 1/3 of the gain (800 points back to 8100). The market has again went up 2400 from that point to the current top of 10,500. So, I assume another 1/3 correction of another 800 points is at hand.

To make sure we don't get left at the starting gate, we are going to invest 50% of our money and hold about 50% back, just in case I'm right about the 9700. It would give us a chance to rebuy at a better price for the continuation up.

So.........I want you to spend 9% of your portfolio on each one of the following:

OCNF....................OCEAN FREIGHT..................$.92

CBAK...................CHINA BATTERY CO..............$2.78

FEED.....................AGFEED INDUSTRIES...........$5.00

FITB.....................FITH THIRD BANK................$9.75

AONE....................A123 SYSTEMS.....................$22.44

JDSU....................JDS UNIPHASE......................$8.25

We sold our 2009 portfolio for a 244% profit. Not bad.

DATED 12/12/09

I've been telling you for years that we are always the last ones to go up in price and the last ones to go down, now let me prove it. The FORECLOSURE FILINGS for November were down 15% from October NATIONWIDE. Good news??? Not just yet.....While the rest of the Country basked in that 15% improvement, Washington State only improved 1.5% in the same period. While that still sounds like an improvement STATEWIDE......it's a long way from better for us. FORECLOSURE FILINGS IN KING COUNTY ACTUALLY INCREASED BY 25% from October to November. We currently rank 28th in States for forclosure rankings, but that 25% monthly gain in KING COUNTY sets us right at the top of the list for increasing foreclosure filings in a metropolitan area, which obviously keeps setting us up for lower and lower prices.

WARNING

THE CROOKS ARE OUT THERE WAITING FOR YOU IN THE PARKING LOTS

Just when you thought it was safe to go shopping. The crooks have a new tool. It's not that expensive and it can read the signal your remote car door opener gives out when you lock or open your car, and they can do it from a distance. I would suggest that you lock your car from the manual lock when you go shopping, and open the door with a key when you're out Christmas shopping. They are targetting shoppers that have lots of shopping bags. You make a deposit at your car or SUV, lock it, and return to the store. When you come back out, your things are gone. They are also reading your remote when you come out with items, then following you to the next store. You exit the car to shop some more and guess what......yep, they'll take it all before you get back. Use those manual locks and keys at Xmas time.

CONGRESS EXTENDS AND EXPANDS HOMEBUYER TAX CREDIT

The $8,000 tax credit has been extended to April 30th, 2010 for firts-time home buyers. First-time home buyers are considered as not having had an interest in a principal residence for 3 years prior to purchase. Married first-time home buyers filing separate returns will be allowed $4,000.

To qualify for the new "expanded" tax credit of $6,500 ($3,250 if filing separate) all you have to do to qualify is have lived in the home you have just sold, or are selling, for 5 consecutive years of the last 8 as your principal residence.

INCOME LIMITS RAISED

If you bought through November 30th of 2009, the income limits then were $75,000 for single and $150,000 for married. The new limits as of December 1st, 2009 are $125,000 and $225,000.

DEADLINE

So long as a written, binding contract to purchase is in effect on April 30th, 2010, the purchaser will have until July 1st, 2010 to close the transaction. No extensions will be offered or granted past that time.

LIMITATION ON COST OF PURCHASED HOME

There was initially no limitation on the cost of the home, but after December 1st, 2009 the limitation was placed at $800,000.

You might want to make sure everyone, including President Obama, has put their signatures on the dotted line and this is all law now, because it won't start until everyone signs, but it will revert back to the December 1st date.

SOME THINGS YOU MIGHT NOT KNOW

That $7,500 tax credit you got in 2008 can not be rolled over to the 2009 tax credit modifications. The 2008 tax credit WAS ACTUALLY A LOAN, in case you didn't know, and must be repaid in at least $500 yearly payments (or 1/15th of their allowable credit) per year for 15 years starting when they file their 2010 return in April 2011. The only good news here is that they are not charging any interest.....BUT, I wouldn't be late if I were one of the 2008 receivers, and if you are, or sell the home, get ready to pay it off in full.

NOW, as far as the 2009 folks are concerned, yours in not a loan....BUT, just like the other folks, if you sell the home, move out, rent it or do any of the things that violate the TINY TYPE AT THE BOTTOM OF YOUR CONTRACT, within the first 3 years, I would get ready to give Uncle Sam back his money......IN FULL.

A GOOD LINK FOR MORE INFO

Is the IRS links. Try this one at: