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.