A Lifeline to Foreclosures

Today, President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure, declaring an urgent need for drastic action. Not only to save their homes but to keep the housing crisis "from wreaking even greater havoc" on the broader national economy. The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.Government support pledged to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, as part of an effort to encourage them to refinance loans that are "under water". Meaning those in which market values have sunk below the amount the owners still owe. The goal is to lower many endangered homeowners' payments to no more than 31 percent of their income.

Additionally, a $75 billion Homeowner Stability Initiative would provide incentives to mortgage lenders to cut monthly payments in an effort to persuade them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, using money from the $700 billion financial industry bailout passed by Congress last fall.

I believe these are vital initiatives and all of which we should become aware of and help push to save not only the economy but the many people (people we know) facing foreclosure.

Annie Osburn

Optimistic About The Future

Though times are tough, there is plenty of good news to consider such as: Almost every bank in Utah's share value went up in the past 30 days (Zion's Bank alone went up over 15%). No Utah banks has provided additional bad news in the past 60 days - outside of what they already were aware of. The US creates 875,000 new families each year that need housing (and Utah gets their share on a per capita basis) Traffic at good affordable housing projects is still 65% of what it was just a year ago with more than 85% without agents. There is a "huge" pent up demand for housing while first time home buyers still live with parents or in rentals. The Bailout plan, which is about to pass, will have some implications to the future value of our money but have you considered the influx of buyers it will provide to the market if they feel secure in their decision to purchase that things may be going the right way. Rates are still hovering around 5% Feds have tax credits and additional incentives pending to offer buyers and the list goes on and on. Yes, we are in some rough times but lets try to be optimistic about the future.

Urgent message

Urgent Message from Dave Liniger. If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn around in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences. Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate and House web sites to locate the email and phone number of your legislators.This may be one of the most critical moments for the real estate industry in our time. Please pass this information on to anyone you might do business with. The outcome of this legislation will have a lasting impact on us all. I appreciate your assistance on this urgent matter.Thank you.