Mark Your Calenders - Thomas the Train is Coming to Cedar Park

Parents and children in the Austin/Cedar Park area can enjoy a day with Thomas the Train.

The event is being held the Cedar Park Depot on Whitestone Blvd in Cedar Park from September 23rd to September 25th. It's a twenty-five minute ride with a full size Thomas the Tank Engine, Meeting Sir Topham Hatt, Storytelling, Live Music, Build with Mega Bloks and much more!

I know my son can't wait to see Thomas!

Do You Think You Need Flood Insurance?

With hurricane season coming upon us, it would be a wise choice to review your homeowner insurance. Flood coverage is not provided in your standard home owners insurance policy. Most people think, I don’t live near a body of water I don’t need it. But if water backs up or overflows from a sewer, drain or sump in to your home, guess what, it’s not covered.

“Standard homeowners policies cover structural and water damage when wind or a falling tree knocks a hole in a roof, or breaks a window, allowing rain to fall inside,” the Associated Press reports. “But there's generally no coverage for the home itself, or for personal belongings, when damage results from rising water. That includes water that seeps up from saturated ground through a basement floor, and homes near beaches flooded by storm surges.”

The take away, talk to your insurance company and understand the coverage you are paying for so you’re not left fixing something you thought would be paid for by insurance.

$1M Grant will Improve Auditorium Shores

Auditorium Shores is a popular outdoor venue used in SXSW, Fun Fun Fun and many other events. Its great news that the city lands $1 million grant for its improvements. Unfortunately the hike and bike will be moved back away from the shoreline, but it will gain additional parking, bathrooms, landscaping and more. The project is projected to start in the next 12-16 months. Improving out park systems only enhances Austin's appeal. I look forward to seeing the changes.

Short Sale Fraud and a Warning from Freddie Mac

With the rise of short sale, so to is the risk of fraud. Freddie Mac is sending out a warning to Realtor's & the public of the top four short sale fraud schemes.

Rigging sales & illegal flipping. In essence, a Realtor rigs the transaction to a low price & hides the better offer from the distress homeowner & from Freddie Mac. Once the home sells, the fraudster flips the home for a better price. By this concealment the distressed homeowner & tax payer loses.

Freddie Mac has a unit dedicated to short sale fraud. If you are a distress homeowner or a buyer of a short sale property, insist on signing an Arm's Length Affidavit. This affidavit is signed by all parties in the real estate transaction and states there are no hidden terms nor special agreements among the buyers, sellers and/or agents.

Treasury Rates Trend Downward, but Don’t Expect Mortgage Rates to Follow

It is widely believed that the rate on the 30-year fixed rate mortgage tracks the 10-year Treasury bond. But with the latest downward trend in treasury and the mortgage rates not following the two rates may have become unhinged.

The typical homeowner with a 30 year note, lives in their home for 8 to 10 years hence why the two rates have been tied. However, when the Treasury rate falls, especially if the decline is rapid and sharp, the 30-year fixed rate mortgage seems to have trouble keeping up. The reason for its sluggishness is that investors face a greater risk of homeowners refinancing as rates plunge investors have to re-shuffle their portfolio..

Take away, if you are a buyer waiting to lock in your mortgage because you feel it will drop further. It may not be a wise decision.

You Can Save Those Bees --- And Not Exterminate Them!

Walter Schumacher announced a new non-profit for free bee removal from your property. He hopes to publicize his non-profits efforts to eliminate the extermination of bees and keep them pollinating important plants. Property owners in the Austin area can call 311 and have the bees removed from their property. This is a true win - win. Property owners can get what is seen as potential heal concern and in turn help the environment by having more bees to pollinate our flowers, fruits and vegetables.

Opportunity Only Knocks Once!

Wow! What an opportunity to own a home in Silverado Ranch (Vista Ridge &1431)! At a list price of $242,050 you will not find a better price per square foot in Cedar Park.

It is a great house & a great deal. Homeowners in the area can take advantage of getting their errands done quickly by having access to local grocery stores and retail shopping minutes away. The public schools, Reagan Elementary, Henry Middle & Vista Ridge HS are in walking distance! What else could you ask for! If you would like to set up a showing please contact me.

Many homes under contract will not be able to close after September 30 if Congress does not act.

On September 30, the cost of a mortgage could rise significantly. If this happens, people wanting to purchase a home run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back the housing recovery.

Many homes now under contract will not be able to close and 1,300 sales per day could stall on September 30, 2011, unless Congress takes swift action to make the current FHA and GSE loan limits permanent.

Well-qualified buyers don't need another hurdle to access affordable mortgage financing.
If Congress does not act, below are examples of the loss of buying power accessible to those purchasing their home though FHA loan program.

County Current FHA Loan Limit Limit as of 10/1/2011 Difference
Atascosa County $332,500 $287,500 ($45,000)
Bandera County $332,500 $287,500 ($45,000)
Bastrop County $288,750 $271,050 ($17,700)
Bexar County $332,500 $287,500 ($45,000)
Caldwell County $288,750 $271,050 ($17,700)
Comal County $332,500 $287,500 ($45,000)
Guadalupe Co. $332,500 $287,500 ($45,000)
Hays County $288,750 $271,050 ($17,700)
Jeff Davis Co. $271,250 $271,050 ($200)
Kendall County $332,500 $287,500 ($45,000)
Medina County $332,500 $287,500 ($45,000)
Travis County $288,750 $271,050 ($17,700)
Williamson Co. $288,750 $271,050 ($17,700)
Wilson County $332,500 $287,500 ($45,000)

The Ugly Truth - The Texas & National Economy

I read an post to the Dallas Federal Reserve and I think Richard Fishers has some interesting and points on Texas and national economy.

The last paragraph in the post I think is relevant and places a light where it should be, Congress, "I think I have made it pretty clear today that I believe what is restraining our economy is not monetary policy but fiscal misfeasance in Washington. We elect our national leaders to safeguard our country. An integral part of that consists of safeguarding the nation’s fiscal probity. Pointing fingers at the Fed only diminishes credibility―the ugly truth is that the problem lies not with monetary policy but in the need to construct a modern, appropriate set of fiscal and regulatory levers and pulleys to better incentivize the private sector to channel money into productive use in expanding our economy and enriching our people. Only Congress, working together with the president, has the power to write the rules and provide the incentives to correct the course of the great ship we know and love as America. I hope you, as the voters who put them in office, will demand no less of them."

I enjoyed reading the entire post. Brings perspective outside of columnists, politicians and pundits alike.

City of Cedar Park TX Maintaining Tax Rate

The 2011–12 Cedar Park tax rate will remain the same or lower than 2010–11 after City Council voted to set the maximum tax rate at .493501 per $100 valuation.

The city set two public hearings for the 2011–12 tax rate and budget for Aug. 25 and Sept. 8.

Other notes include, The City Council approved an agreement with the Central Texas Regional Mobility Authority that would allow the city to take over traffic signalization for four traffic lights along Toll 183A. Assistant City Manager Sam Roberts said the switch should improve repair response time and benefit the city and its residents.

Council members received a presentation update on plans to finish the new City Hall on Cypress Creek Road. Current plans call for a 115-seat council chamber, standalone buildings for high-traffic customer service areas and space for most of the city's departments to grow within the new offices.

Plans are 70 percent done and the project is on track to be finished by March 2012. After a presentation outlining the benefits and challenges of business incubators, council members directed city staff to seek proposals for opening a business incubator with performance-based standards. Business incubators help startup and fledgling businesses develop and grow in hopes of adding jobs to the community.

A representative with Ranch at Cypress Creek MUD said about 1,000 residents from the area signed a petition for voluntary annexation into Cedar Park. About 1,900 property owners reside in the area.

Monthly Review of Texas Economy - July 2011

Based on the most recent “Monthly Review of the Texas Economy”, provided by Real Estate Center of Texas A&M. Texas, aided by a robust private sector, gained 225,200 nonfarm jobs from June 2010 to June 2011, an annual growth rate of 2.2 percent compared with 0.9 percent for the United States. The state’s private sector added 251,900 jobs, an annual growth rate of 3% percent compared with 1.7% for the nation’s private sector.

Texas’ seasonally adjusted unemployment rate increased to 8.2 percent in June 2011 from 8.1 in June 2010. The nation’s rate decreased from 9.5 to 9.2 percent.

The state’s mining and logging industry ranked first in job creation and posted an annual employment growth rate of 16.8 percent from June 2010 to June 2011.

The state’s construction industry ranked second in job creation, adding 30,900 jobs from
June 2010 to June 2011, a 5.4 percent rate increase

The state’s professional and business services industry gained 57,200 jobs from June
2010 to June 2011, an annual growth rate of 4.5 percent

Texas Metropolitan Statistical Areas

Five Texas metro areas (Killeen-Temple-Fort Hood, Wichita Falls, San Angelo,
Brownsville-Harlingen and Abilene) had fewer jobs in June 2011 than in June 2010. Longview ranked first in job creation, followed by Odessa, Dallas-Plano-Irving, Laredo, College Station-Bryan, Midland, and Corpus Christi.

The Austin-Round Rock-San Marcos metro area’s annual employment growth rate from
June 2010 to June 2011 was 1.2 percent, ranking it 16th.

How to Buy a House Before Your Other House Sells

In a buyer's market, the inventory of homes for sale can be astounding. Deciding on a home to buy is difficult enough, but what happens when you have one to sell beforehand? Many times, especially in a soft real estate market, a buyer may get into a situation where they find a new house before their current house sells. Acting as a buyer and a seller in separate transactions can be tricky business, especially if you need the equity from your current home to pay for the new home. Luckily there are some best practices that can help show you how to buy a house before your other house sells.

Consider a Bridge or Home Equity Loan. There are many financing options available when it comes to home buying, and bridge loans can be an easy way to finance a new home sale before your existing home closes. A bridge loan is one that is used to provide funds needed for a short period until another source of funds becomes available. Sometimes called a "swing" loan, it allows a homebuyer who needs the equity in his old home to pay for the new one to close on the new home purchase before closing on the old home sale. The interest rates on these loans are typically high. However, because the loan will be paid off in a short period of time, this should not be a huge problem for buyers. In a similar vein, you might consider a home equity loan on the house you already own. This is a bit riskier, but provides the same benefits.

Rent your current home. If you can find short-term or month-to-month tenants who are willing to rent your current home until it sells, you can avoid having to worry about the house sitting vacant while you are moving into the new home. This can help you avoid having to winterize or de-winterize the property and stage the home for showings. You will also be able to apply the rental income to your existing mortgage on the house, to alleviate the financial burden of paying two mortgages.

Work with the Seller. In a soft market where buyers are limited, sellers are often willing to work with the buyer on a purchase agreement that works for both parties. If you've already found the house you want to buy, but haven't yet sold your existing home, it may be possible that the seller will allow you to make a small down payment with a signed contract that permits you to wait to make the purchase until your old house sells.

Thinking About Moving?

Compare where you live to a new location or multiple areas using current information on community summaries, market stability, schools, listing vs. sold price, buyer vs. seller market, and even smoking bans. It's an easy to use tool that provides valuable information.

Understanding Federal Government Grants for Home Improvements

In today's economy, it may not be an easy choice to make improvements to your home. From basic necessities like a new roof to luxury enhancements such as an upgraded kitchen, deciding how much money to spend in a tightened economy can be a difficult decision for many homeowners to make.

Luckily, there are some federal government grants for home improvements available if you meet certain criteria. And for those that don't qualify, you might be able to deduct home improvements from income taxes.

Federal Government Grants for Home Improvements

Below are some of the most popular federal government grants for home improvements and who may qualify:

Rehabilitation and Repair Loan - Also known as the Section 203(k) program, this loan is the Department of Housing and Urban Development's main program providing assistance for repairing and rehabilitating single family properties. To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year.

Property Improvement Loan - Also known as Title 1, this program insures loans to finance the light or moderate rehabilitation of properties as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 and only lenders approved by HUD can qualify.

Rural Area Loans - The Department of Housing and Urban Development offers a number of single family housing programs to low- and moderate-income rural Americans through various loan, grant, and loan guarantee programs. Certain income and credit restrictions apply and should be verified with HUD.

Native American Loans - The Section 184 Indian Home Loan Guarantee Program is a home mortgage specifically designed for American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities. Section 184 loans can be used for new construction, rehabilitation, the purchase of an existing home, or a home refinance.

HOME Program - The HOME program provides grants to communities in partnership with local nonprofit groups to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for low-income people.

Community Development Block Grant - This program provides homeowners with resources to address a wide range of development needs, benefiting low and moderate income households through the elimination of slums and addressing urgent community needs.

For those that don't qualify for any of the above grants, you can also check out the U.S. Department of Housing and Urban Development (HUD) website for additional home improvement programs. New programs are updated and added on the government website on a routine basis. If you're planning to deduct home improvements from income taxes, the IRS website is a great resource to see which improvements might qualify for a deduction. Generally, you can deduct expenses such as construction loan interest and sales tax on building materials. If you operate a home-based business or use part of the home as a rental, you can even deduct a percentage of all home improvement costs on your tax return.

Between all the government grants and tax return deductions available, you can be well on your way to enjoying an updated and improved living space that won't put a strain on your bank account.

There is many homes in the Austin area that qualify for these types of loans, if you would like to find out more, please contact me.

Handling the Stress of an Unaffordable Mortgage Payment

Whenever I research the latest foreclosure and distressed property statistics, the sheer number of Americans facing the stress of losing their homes amazes me. It is my goal to help as many homeowners I can either stay in their homes or relieve the burden of their mortgages. Knowing that there are so many that need my help is a driving force for me to continue doing what I do.

In fact, I just released another report that I’ve made available on my website today. It explains the CDPE designation and lists 10 options that homeowners can take advantage of to relieve the stress that comes with owing their mortgage lenders more money than they can afford to pay.

The report also draws a contrast between short sales and foreclosures. Unfortunately, there’s a growing trend of “strategic defaulters” who think it’s smart to let their home go into foreclosure. As any one who follows this blog knows, there is nothing strategic about foreclosure; it’s one of the most long-lasting, negative financial challenges you can go through.

I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

Preston Oaks - Opportunity is Knocking!

Buyers in the market are looking for two things. A great house & a great deal. This listing hits both of the marks. The owner has taking incredible care of this home in Preston Oaks and it shows great.

Homeowners in the area can take advantage of getting their errands done quickly by having access to local grocery stores and retail shopping minutes away. There is also easy access to the Domain and major employers such as AMD, Dell, Seton & St David. Also easy access to Palmer, MoPac, 183 & 45.

If you would like to set up a showing please contact me.

The Austin Area Market Snapshot

The number of active listings are down 18.98% from last year during the same week, but new listings are up less than 1% this week compared to the same week last year.

Pending sales are up this week 30.90%. Current number of pending sales are 3,161 with an average list price of $255,151.

Sold residential units are up 46.47% compared to the same week last year.