All real estate investors can expect bad news regarding this 4th quarter of 2009 after Freddie and Fannie requested a $400 billion ceiling in their credit pool.

With this increase in available credit for the federal corporations, the Obama administration simply avoids the embarrassment and humiliation of addressing the failures of these institutions in public media, after all they already received more bailout money than any other corporation due to their close ties with government officials.

There is no better example of what happens when the government tries to manage a market than what has happened to these 2 government corporation and the corresponding performance of the housing market. Amid rising defaults, both made unusual disclosures recently, noting that the government’s pressure on them to assist the housing market could cost taxpayers.

But by lifting their credit lifelines, Congress avoided yet another bailout for Fannie and Freddie from an already embattled, bailout-happy Congress.

Consequently, even more tax payer dollars will go to the undeserved executive bonuses that the leaders of Fannie and Freddie will receive, since they got their bailout money before the initial pay guidelines were in place, and the increase in available credit does technically constitute a bailout.

Unlike Citigroup, Bank of America, AIG, Chrysler, and GM, Congress deemed that Fannie Mae and Freddie Mac had not received “exceptional assistance” and therefore did not have to have their pay decisions scrutinized by the pay czar.

As poorly as these two institutions have performed over the past year, the possibility of their executives receiving their $6 million pay seems ridiculous.

In 2009 the credit lines for each of them were already increased from $100 billion to over $200 billion, and now they are requesting to have that amount doubled again to total more than $800 billion, which is backed only by our governments willingness to pay the interest, with taxpayer dollars. With a combined total of over 100 billion of our taxpayer dollars already doled out to Fannie and Freddie, the government simply allows more money for them.

Fannie and Freddie’s main function is to buy mortgages from lenders and sell them to investors, usual in bundles with a certain risk rating. By practicing illogical and mis-placed theories, Fannie and Freddie have become liable for 5.5 trillion dollars worth of American home loans and will only be allowed to mis-manage more and more with increased credit ceilings. Not to mention that their balance sheets still conceal 100’s of billion of dollars of securitizations that are not yet counted.

Under the Treasury’s new flexible financing formula, Fannie and Freddie get more taxpayer support based on a formula that takes into account how much each company loses in a quarter. Even after the companies were forced into conservatorship, the Obama administration has continued to use them as tools to promote the administration’s efforts to keep some air in the rapidly deflating housing bubble.

As a taxpayer, you are left to wonder why all of your money is being spent on a secret bailout for federal corporations whose portfolios only continue to decline in value, by our President whose plans to stop or slow foreclosure have been an abject failure.

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Getting the ball rolling on any project often takes more energy than it should. When you do get things rolling you really want to be organized enough to keep up the pace. In the home rehabbing business, this seems to be common difficulty. Many times the most glaring issue that is wrong with a home is not easily discovered.

The first thing you need to take care of is not always the most obvious. Finding a good place to start will help you keep your rehab project proceeding in the right direction. To save you from all that stress, here’s a lose list of what repairs you must do first when rehabbing houses.

First thing you should do is create a time-line for repairs. If you have a contractor, consult him and set a deadline for repairs. Can you get this or that done is a set period of time? Ten to twelve days? After you establish these time lines then you can work hard to meet that deadline and continue through each one.

All appliances must be taken out of the property. There are plenty of refurbish stores that will gladly resell your materials to people who may need them. The money can always go toward something in your own project. Repainting an old home also brings a new vitality to any old home.

Major repairs come next. Always plan on operating on a smaller budget than what you anticipate at first. That means you must prioritize repairs that will eat up most of your money. Anything structural must be taken care of first and by a licensed professional. After that you focus on the obvious cosmetic repairs. Structural repairs can be anything that is directly tied to the structure or support of the home and doesn’t necessarily remain visible after completion.

It is also important to make any changes to the ventilation system in your next steps. Followed by any necessary electrical and plumbing changes you plan on implementing. Making changes to the appearance is next. Installing new lighting fixtures, applying paint, and replacing doorknobs are examples of cosmetic repairs.

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No matter how big, or small, your operation is, selecting the right general contractor is very important to the success of your construction programs and projects. When there are so many different companies to choose from, you will need to know how to separate out the ones who leave the job without finishing everything and stick you with a bill that is much too high for the quality of work done.

This article will give you some of the best tips on how to make sure the contractor you hire is the right one for your project, no matter what it is.

The best advice is to interview at least 3 construction managers before deciding on any of them for your construction project and don’t allow them to be shifty in any of their answers or change topics either. Their reputation should be impeccable and you should be able to find a clean file at the BBB to make sure they will do what you want them to do, so you have some redress if they don’t.

One sure fire way to tell that a contractor takes their own business seriously is if they answer any and all questions you have in a prompt and thorough manner. Some of the basic questions that you might have about various projects includes the total duration, costs, materials, and other things that come to mind when thinking about what you want done.

You may even want to brush up on your local building code and throw a snippet or two at him to see how he reacts to it, and to let him know you have been learning about it. As you mention the code you know, the un-confident contractors may even withdraw a bit and not be too eager to provide their references. Once you check out their references and they all look good, and if you are confident in them after the interview you can make your hiring decision at that time.

Finally, when looking for the right contractor, you should stick to what your gut instinct tells you, because chances are it is right.

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The stimulus money the feds have released into the economy has had a huge impact on the real estate market, including allowing cities to use the fund to purchase low income housing. The purpose for this is simple, it is designed to help the real estate market while supporting the poor in the communities.

With the economy sinking so low and unemployment engulfing the job market, for the government to do this is a step in the right direction. Without this boost the city governments may not have acted quickly enough to make sure they could house all of the poor people right now.

Without the recent changes, a city would have to contract for a certain agreed upon payment for the rental property and then, reluctantly, property owners may agree to allow the poor families to rent from them.

Some of the occupants of this kind of housing are disabled and need special care, or they may just be people who are unemployed and need help getting back on their feet. Residence in this type of housing is typically short term so that people do not overstay their welcome, unless conditions demand a longer stay.

The owners of the low income housing can qualify for special tax exemptions for agreeing to allow their property to be used to house the poor. To add to the incentive, rent rates for people who qualify for low income housing tend to be backed by the government, so if you have a problem collecting rent the fact that you are on the indigent program will make sure you get your rent payment.

Upstart investors frequently seek out low income housing programs when they get started buying and selling properties so that some of their risks are diminished. This furthers the notion that everyone involved will come out ok when participating in low income housing programs.

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Yeah! That is the sound that Some real estate professions made when last years tax credit for first time home buyers was granted a 7 month extension.

This tax credit is truly what floated the real estate market by causing many likely home buyers to close, who presumably may not have closed without it.

Discussions range broadly in their determination of how much impact the tax credits have had on the real estate market. Most taxpayers do not feel like their tax dollars should go toward giving other people a credit for something as random as buying a home.

Many people point out that the tax break simply induces people who were already planning on buying to buy. Since the tax credit was engineered to be a quick and limited boost to the real estate market, it’s critic are missing the mark.

Another standpoint is that the first time home buyer credit is only going to get people who were already planning on buying, to buy for the tax credit. Since the tax credit was engineered to be a quick and limited boost to the real estate market, it’s critic are missing the mark. The tax credit is supposed to push people who are on the edge of buying into making their decision to help the market short term, rather than several months down the road.

And, there is always those who try to manipulate the system. Many people who do not qualify for the first time home buyer tax credit will fraudulently claim the benefits. Trading the tax credit for a stiff fine and jail time doesn’t seem like a good deal to me.

Given that realty prices were in a free fall, prior to the approval of the tax credit, it is a hard argument to make that says that they were not warranted. This tax credit will be the first in many steps taken by the government in assisting the real estate recovery across the nation.

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Listing your home on the Multiple Listing Service or Meridian MLS is a great way to gain exposure for your home, or to find your dream home to buy. This is why the MLS is extremely useful and important for real estate agents and brokers. Realtors and brokers enter their home listings into the area MLS to solicit buyers agents to show the property.

Now many home buyers are starting to gain access through Realtors websites, to look for their homes directly. With the Meridian MLS you are able to easily browse through specific types of property and homes that are stored into the system. The fees for this service are rolled into the brokerage fees and typically cost nothing up front. The MLS is a free service that is sponsored by the Realtors who are advertising their current available properties.

The Meridian MLS is designed to showcase as many home options to buyers as possible, to help them make an educated decision. The MLS will show all of the current homes that are for sale that meet your search criteria. Compare this to twenty years ago when a buyer was forced to accept limited information, and was only able to visit a few homes per day These were the days when a buyer desperately needed a real estate agent in order to get the necessary details regarding homes for sale.

The Meridian MLS provides the written details regarding a home, as well as pictures of the property. Many MLS programs even incorporate aerial photos from Google Earth. The search criteria in the MLS today include; price, size, bedrooms, bathroom and even lot size.

Realtors are even more accessible through today’s Meridian MLS. Buyers can always learn more by contacting the listing agent directly so they get the inside scoop on their target property.

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In today’s real estate market banks have a difficult time confirming the value of the homes they are financing, and consequently buyers have a hard time getting the money they need to buy their homes. To avoid the confusion on the price of a home, banks hire a third party assessment of a homes value, called an appraisal.

An appraisal is designed to use local market trends to validate the purchase price of a home, or to invalidate it. Ideally the bank would want to make sure that the home they are lending money on, and may have to take back in the event of a foreclosure, is worth the money so they can recoup any loses they may have on the loan.

An appraiser can not just be someone off of the street. An appraiser is a formerly trained person who knows the trends and values of the local real estate market. The objective valuation an appraiser is supposed to provide cannot be influenced by buyer nor seller or the entire appraisal may be corrupted and unreliable.

Without that, the entire process has a shadow of doubt cast over it and may be deemed useless, or a real liability in a court of law.

In the event that an appraiser can prove that the home is not worth the amount of the purchase, the buyer either has to come up with the difference for a down-payment or cannot get financing for the home. In most cases, the buyer simply would walk away and not complete the transaction. But, without an appraisal the bank can frequently be stuck holding the bag.

Either the asking price must be reduced or the buyer will put down a larger down payment to offset the valuation shortfall.

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The recession has created an interesting tendency in real estate construction, little houses that are more affordable and more energy efficient. The American Institute of Architects has reported a 59% change in the number of home builders in the U.S. featuring little homes and those trends are only reflecting the market trend of buyers preferring smaller scale homes.

As the recession started to wreak havoc on the real estate market back in 2007 the size of houses being built started to decrease along with every one’s’ 401ks. The average size of new home construction plummeted over 9% as home buyers and builders lined up their home needs with their pockets books.

Expenses are often being reduced on these little residences by using part from other homes or outbuildings again in their construction. Old barns and homes that are being torn down have supplied many materials that can be used again for the builders who are constructing little homes.

Given that the smaller scale homes are much cheaper in value and can still have many of the extravagances of larger homes, you can understand why the trends are pointing up for them.

The small homes one California builder makes can be put on a foundation or on wheels. He sells plans for a little under $999 and builds mobile, small residences for around thirty thousands dollars. He says that building a small home is similar to having a suit tailored to fit. Since it is a custom home, every plan has specific inclusions that are important to the home owners. Given the limited amount of space, many of the small residences have built-in space saving features and can store as much as larger houses.

Major corporations like Lowe’s, the home improvement retailer, vends it’s own “Katrina Cottages” designed to counter F.E.M.A.’s toxic trailers.

Given the tendency of people with extra room to accumulate more stuff, the smaller home size helps many people deal with the materialist nature we all tend to have. Many homeowners are taking those exact thoughts to heart and exchanging their energy “McMansions” for smaller, if not more humble residences.

Do not be fooled into thinking that these smaller scale residences are lacking in luxuries or the modern creature comforts of larger houses. The appliances in the smaller residences do not have to scaled down due to the incorporation of double door refrigerators and claw foot tubs. With economy in mind and luxury featured, these home are drawing a higher degree of green buyers too.

Featuring reduced energy costs and lower mortgage payments, little homes are really an easy sale. little home favor lower ceiling heights that make energy efficiency easier. Regardless of if the climate is hot or cold the energy efficient traits of smaller houses pay off due to the fact that you are treating a smaller volume of air.

Finally, have a smaller home built will not only keep your cost of living down, but it can also increase the recreational value of your home. With more room on your lot due to the fact that you home now takes up less space on your lot, you can use your lot to put up solar panels, solar water heaters or grow your own veggies. Maybe you can put that shop in the back you have always dreamed of!

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Recent news posted stating that JP Morgan was hiring 1200 loan officers at locations all across the nation. In case you did not know who they are, they are the wall street bankers who acquired WAMU to get out from under several billion dollars worth of tax money they owe to the government. Sound familiar? I thought it might.

Offsetting further tax liability, they also purchased Bear Stearns when their outlook began to sour and bankruptcy looked eminent for them. Bear Stearns was denied a bailout by former Goldman Sachs head Ben Bernanke, otherwise they may have received TARP money as well.

JP Morgan states that many of the mortgage officers that they are hiring will be stationed and loan centers all across the United States. What baffles me is their logic for the hiring trend. They are reported to have claimed that they want to be able to most dutifully service and serve home loan seekers when the real estate market does turn around. That is not an exact quote but you get the idea.

Is JP Morgan getting signals from somewhere other than the media, because all of the news here lately would indicate it is no time to hire new loan officers, no matter how big your bank is. With pink slips as common as pin striped suits, JP Morgan looks as if they are paddling upstream.

With everything revealed, I think it will be profoundly obvious that JP Morgan, and the only other remaining Wall Street bank, Goldman Sachs, have been working diligently to establish themselves as the exclusive source of credit, before turning back on the spigots of credit.

They are putting in a place the mechanism to make the real estate recovery emerge suddenly and lift many homeowners out of what would otherwise be a hopeless situation. My question is are you a hero if you present the cure for the disease you have caused?

The author enjoy writing articles on Boise Idaho real estate & Boise homes. Click on the links above to learn more!

The Meridian real estate market recently reached a way-point on the road to recover when Fanny and Freddie re-categorized our market as no longer being a depreciating market. There are a few other changes that will also have a positive effect, but first the change in classification.

Freddie and Fanny both recently took Boise off of the “depreciating” market category which will have some very significant impacts on the types of financing available to Meridian area buyers.

The most significant of these buyer impacts is that 100% financing will return due to the fact that buyers can now get mortgage insurance again for more than 90% purchases. When any market is in a state of decline the mortgage insurance companies will refuse to insure loans due to the fact that the lack of equity makes it easier for any home owner to simply walk away when things get tough. It makes sense if you put yourself in their shoes.

Given that the buyers can purchase with nearly all of their costs paid for or rolled into their home loan in one fashion or another, buyers will be snatching up the great deals that are in the Meridian real estate market right now.

Meridian has been the darling of the local real estate market due to the newness of the majority of the construction in the area, good schools, lower crime rates and good public service districts. When you mix in the fact that home values have been at recent lows you can bet that the extra inventory on the Meridian market right now will not last long at all.

Since any property in Meridian Idaho will benefit from this change many Meridian homeowners and businesses will start to have access to fund for refinance too. The advantages of that is obvious, but still deserve repeating. All those homeowners who were trying to save their credit and their homes by getting a loan modification can now get refinanced instead.

The hope is that many homeowners who would have otherwise given up hope and simply listed their home as a short sale, will now not even put their home on the market.

With looming legislation on the horizon, banks will soon have the resources and permission to rent out their own REOs, once they pass control on to a holding company.

What this means is that the REO inventory that was previously flooding the market will now be slowly releases as the market can absorb it. It also means that banks will be able to recover some money from the REO property as they can rent the REO property out until they are putting it on the market. This actually has a side benefit for local residents in that the renter of the REO properties will receive a discounted rent rate as well.

This could have a bit of a detrimental effect on local rents rates as cheaper REO rentals could drag consistent rent rates lower. Given its initial mission and intent the law will overall buoy the real estate market by limiting supply and causing a temporary “kink in the hose” so to speak.

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