House and Senate Agree on Housing Bill (Boulder Mortgage Update)

A comprehensive Housing Bill was agreed upon by the House, the Senate, and the President this week, and it was successful in increasing confidence in the guarantees provided by Fannie Mae and Freddie Mac.

As a result, mortgage rates ended the week modestly lower. Formal passage of the Housing Bill is considered a sure thing. One primary feature is that it authorizes the Treasury to provide credit to and buy shares in Fannie and Freddie, if needed. According to industry trade publications, Fannie and Freddie, along with the FHA, accounted for 90% of US home mortgages originated in the second quarter of 2008, up from just 49% one year earlier. Keeping the two firms healthy is vital for the US housing market.

Besides providing support for Fannie and Freddie, the Housing Bill will also help the housing market in other ways. One program will allow the FHA to insure up to $300 billion in new loans targeted at troubled homeowners. Another program adds tax credits for first-ti me homebuyers, which in essence will be a 15-year interest free loan for up to $7,500. In addition, the bill provides funds for more low income housing and grants to be made for local community redevelopment. A wide range of smaller programs are included as well.

The economic news in the housing sector was mixed. June Existing Home Sales fell slightly, and inventory levels of unsold homes increased.
In contrast, New Home Sales were significantly higher than expected in June, and the May figures were revised higher as well. High inventory levels will probably need to come down to achieve a meaningful recovery in the housing market, but the chief economist of the National Association of Realtors (NAR) believes that the Housing Bill will play a major role in helping the housing market to rebound. In particular, he expects the first-time homebuyer tax credit to boost future home sales.

Friday will be the big day next week. The important Employment report will come out that day. As usual, this data on the number of new jobs created, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, since the health of the labor market is perhaps the single biggest factor in the performance of the economy. Early estimates are for a loss of 70K jobs in July.

The first reading of second quarter 2008 Gross Domestic Product (GDP) will be released on Thursday. GDP is the broadest measure of economic activity. The two national manufacturing indexes, the ISM and the Chicago PMI, will come out on Thursday and Friday. Consumer Confidence and Construction Spending will round out the schedule.

For Mortgage Information call Dave Schell at Insight Financial in Boulder Colorado 303-444-2885

Short Sale In Boulder Area and Northern Colorado

There are many ways homeowners can lose a home, but signing away ownership from foreclosure or bankruptcy can strip an owner of dignity and their nest egg. The option of a "short sale" or "discounted payoffs" may make more sense for the homeowner; however, there are some issues relating to these kinds of real estate transactions. The first issue, other than the Mortgage Forgiveness Debt Relief Act of 2007, the home owner should be aware the I.R.S. could consider such an act of debt forgiveness as income. There are no guarantees that a lender who accepts a "short sale" will not legally pursue a borrower for the difference between the amount owed and the amount paid. In a few states, the amount is known as a deficiency. The second issue is, even if the property does qualify, not all lenders will agree to do a short sale or discounted payoffs. S o when going though the varying requirements remember the following: When calling the lender do not speak with the "real estate short sale" or "work out" department(s); rather, get the supervisor's name, the name of the individual capable of making a decision. You will receive better cooperation if you prepare a "Letter of Authorization" to the lender (giving the lender permission to speak with third parties). The letter should include the following:
- Property Owners Name
- Property Address
- Loan Reference Number
- The Date- Agent's Name
- Agent's Contact InfoSome of the other documents needed to have a successful short sale are:
•Preliminary Net Sheet
•Hardship Letter
•Proof of Income and Assets
•Copies of Bank Statements
•Comparative Market Analysis
•Purchase Agreement & Listing Agreement

Executive Mountain Home Near Boulder

Executive mountain retreat located off Peak-to-Peak highway, minutes from Blackhawk/Central City and 45 minutes from Denver & Boulder. Rustic contemporary home built in 2002 is nestled among massive spruce and aspen groves. Home has a large living room area with river rock fireplace and cedar beam and log accents, main floor master bedroom with walk-in closet/office area and bath area with jetted tub and steamshower, spacious country kitchen area with top of the line appliances, forest green distressed kitchen cabinets with granite counter tops. The inclusion of a spacious family room on the main floor and spacious out-door deck areas makes this the perfect home for entertaining. The second floor has two additional bedrooms and a full bath. Wide-plank pine flooring, vaulted ceilings and rock, log and cedar beams makes this the perfect mountain home for the discriminating buyer. Property For Sale = Denver MLS#: 635723 495,000- Single Family Home - 3 Bed2.5 Bath 3,040 Sq. Ft. Built 2002 Dory Lakes 193 South Dory Lakes Drive Golden, CO 80403 For a privat showing of this wonderful home call Gregg @ RE?MAX of Boulder, Inc. 303-875-4907

Big Cat Tracked Down in Boulder Neighborhood

We've had a rash of Mountain Lion sitings in the City of Boulder recently. Most of the sitings have been in the University Hill area of Boulder. Today a lion was hiding under the deck of a house near 9th and Aurora in Boulder. The lion was tranquilized and taken back to the pine forests in Boulder County. This is becoming common place in Boulder this year. This is the 2nd lion that has had to relocated this year. We share our land with wildlife in and around Boulder and Colorado. There are many resources available to learn about living with wildlife. Here are a few photos of the capture. No one was injured and the mountain lion is headed back to nature. Don't you just love Boulder. It's as unpredictable as Colorado weather. Keep your dogs close especially in the evenings

Now Is A Great Time to Buy in the Boulder Valley

I'm sure that you are aware that ConocoPhillips has purchased the former Storage Technology Corporation campus consisting of 1.7 million square feet of office space and sitting on 432 acres in Louisville Colorado. This absorption of office space and creation of new job growth will contribute to a continued surge in the commercial market that is already seeing a steep demand for both small and large office space. There have been several other significant transactions in Louisville, Broomfield and Westminster that all are having a positive effect on housing.

The Boulder Valley is often recognized for its contrary viewpoints and we seem to move differently than the rest of the state and nation with our business cycles too. Our local economy is moving upward while the nation faces a period of stagnant growth. Richard Wobbekind, director of the Leeds School of Business Research Division at CU Boulder, States that, "the Boulder County Leading Economic Indicator projects that the Boulder Valley economy will continue to edge forward in the second quarter 2008. It moved upward from 111,8 in the third quarter 2007 to 114.2 in the fourth quarter. This suggests that the local economy will experience continued growth during the upcoming quarter at a time that the nation is experiencing stagnant growth or recession.."

Recent data from the Office of Federal Housing Enterprise Oversight show that housing prices in Boulder County have increased by 2.9 percent in the last year. I believe that one of the reason we are going counter to the national trend is that we saw a decrease in new home construction beginning back in 2006 in this area and that has meant that we do not have the bulging inventory that other parts of the country are experiencing. The County has one of the lowest per capita foreclosure rates in the state and the unemployment level remains well below the state rate. The recent economic developments in the area show that we continue to be an attractive place to work and live.