Welcome to the Page Sullivan Real Estate Group

What is Title Insurance?

Page Sullivan — Mon, 01 Mar 2010 22:43:00 GMT

Fire insurance protects you against loss from fire. Collision insurance guards you against the cost of a damaged car. Theft insurance- well you get the idea. Title insurance protects your title to real estate theat you are about to aquire.

How does a Title Insurance Policy Protect you? If a claim is made against your title as covered by your policy, your Title Insurance Company will: 1. Defend your titile, in court if necessar, at their expense. 2. Bear the cost of settling the claim if it proves to be valid in orer to perfect your title and keep you in possession of your property.

In New Mexico most property transactions happen at a Title Company. The seller(s) of the property you are about to buy will normally provide you with a Title Insurance Policy at the time of closing. Title Companies will search all the records for information on a property before they will issue an insurance policy. This action protects you and the seller of the property.

Taos weekly Real Estate Statistics: Month of February, 2010

Page Sullivan — Mon, 01 Mar 2010 22:38:00 GMT

14 residential listings sold in February

in the following price ranges:

$100,000 to $200,000 4 homes sold

$200,000 to $300,000 4 homes sold

$300,000 to $400,000 5 homes sold

$500,000 to $600,000 1 home sold

No other homes in any price range sold

Taos Buyers: some information about distressed properties

Page Sullivan — Mon, 22 Feb 2010 16:53:00 GMT

Many times a buyer will want to seek out distressed properties to really get a bottom price. Buyers need to be carefull here because these types of properties offer several challenges.

With foreclosures, attention must fo to how long the property has been empty, how well it was maintained before and after eviction---as there may be several "hidden" concerns that will cost big dollars down the line to correct.

Short sale properties require comprehensive paperwork and a good deal of patience. Some short sales can take months to close which will adversely affect the buyer's tax credit. The last short sale we did took a full year to close.

Home maintenance part II

Page Sullivan — Fri, 19 Feb 2010 20:35:00 GMT

Regular Maintenance

1. Clean gutters in spring and fall

2. Check for damaged roofing twice a year

3. Service furnace or boiler yearly

4. Check furnace filters, humidifiers and any eletronic air cleaners monthly

5. Check bathtub and shower caulking

6. Shut off outdoor water faucets in the fall

7. Cut back trees and shrubs from the house walls, and roof.

Taos Investors? Who will step up

Page Sullivan — Fri, 19 Feb 2010 20:32:00 GMT

Interesting article about who is investing in real estate in our current markets.

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Home » News Articles » Among Buyers, Who Will Step Up?

Among Buyers, Who Will Step Up?

Feb 15, 2010 10:37 AM, By Ben Johnson, special to NREI from OKCREiew

No single buyer group is leading the charge for commercial property in 2010, but REITs look the best poised to make a significant impact, according to a new report from New York-based researcher Real Capital Analytics (RCA).
The dearth of transaction activity that began in 2008 and carried through much of 2009 finally began to ease in the third quarter and looks to continue into 2010. However, buyers are minus a lead dog to guide the way. The biggest bellwether appears to be the public REITs, which have already committed to acquire as much property so far in 2010 as they did for all of 2009. They’ve also raised an enormous amount of dry powder for the job, an estimated $30 billion.

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Across the buying landscape, there does seem to be at least one consistent theme – a frustration at the lack of product. This is most evident when quality assets hit the market. They are quickly bid up by the pool of salivating buyers.
Among buying groups, foreign investors have yet to create a surge in buying activity. Equity funds targeting distressed assets also have raised enough capital to have a serious impact on the market, but their high return expectations are dampening real activity.

According to RCA, prospective investors are increasingly divided between two camps: core and opportunistic, and although they all are looking for bargains, few are finding them.

Core buyers complain that there are few suitable, quality assets on the market and competition for those that are available is steep, pushing pricing to surprisingly strong levels. Opportunistic buyers have been denied the expected tsunami of distressed sales and are now realizing RTC-like returns will be unlikely. Some may have to alter their initial investment strategies or lower their return expectations.

Just 10.8% of all sales in 2009 were associated with distress, but the composition of those buyers differs from non-distressed sales in some meaningful ways, especially within each property type. Overall, players from all sectors, except the public and private REITs, are active in the distressed space. Surprisingly, institutional investors are buying a significantly greater share of distressed sales than of non-distressed, and foreign buyers have been equally active in both arenas. Equity funds have been buying a slightly greater share of distressed than non-distressed properties.

Without decisive moves from REITs, foreign buyers or equity funds, the buyers in the market have largely been private and mostly local. Users, including corporations and governmental and educational entities, have also stepped up to become the second most active buyers of commercial property. As the market recovers, a shift away from private local buyers and users to national and international investors is expected.

Sellers please be aware of what is happening in the Real Estate Market.

Page Sullivan — Fri, 12 Feb 2010 21:24:00 GMT

The Taos Market is different than many markets, but some general trends are true everywhere. You should price your home to sell in the current market which means your list price must be in a range that lures buyers to your property. There are lots of choices even in our market and buyers are looking for the best buy they can get. The article below is a snapshot of what is happening in most real estate markets in the USA.

Home sales tumble surprise 16.7 percent
December's drop is largest in more than 40 years
The Associated Press
updated 12:39 p.m. ET Jan. 25, 2010

WASHINGTON - Sales of previously occupied homes took their largest drop in more than 40 years last month yet managed to end 2009 with the first annual gain in four years.
Still, prices plunged by more than 12 percent last year — the sharpest fall since the Great Depression. The price drop for 2009 — to a median of $173,500 — showed the housing market remains too weak to help fuel a sustained economic recovery. Total sales for 2009 were nearly 5.2 million, up about 5 percent from 2008.
Last month's worse-than-expected showing underscores concerns that the housing market could weaken further after March 31, when the Federal Reserve is set to end its program to buy mortgage securities to keep home loan rates low. Once that program ends, mortgage rates could rise. Adding to the worries, a newly extended homebuyer tax credit is scheduled to run out at the end of April.
The numbers "clearly indicate that the rebound in housing demand observed so far has been largely supported by government programs," Anna Piretti, senior economist at BNP Paribas, wrote in a research note Monday.
The poor December showing occurred after Congress extended the tax credit, easing pressure on buyers to act quickly. The credit of up to $8,000 for first-time homeowners had been due to expire Nov. 30. But Congress extended the deadline and expanded it with a new $6,500 credit for existing homeowners who move.
December's sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday. Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters.
The report "places a large question mark over whether the recovery can be sustained when the extended tax credit expires," wrote Paul Dales, U.S. economist with Capital Economics.
The median sales price for December was $178,300, up 1.5 percent from a year earlier and the first yearly gain since August 2007. But some of that increase could be due to a drop-off in purchases from first-time buyers who tend to buy less expensive homes.
Recovery needs healthy housing market
Sales are now up 21 percent from the bottom a year ago. But they're down 25 percent from the peak more than four years ago.
A healthy real estate market is needed to help the economy continue recovering from recession.
Last year, first-time buyers were the main driver of the housing market. But their role is shrinking. They accounted for 43 percent of purchases in December, down from about half in November, the Realtors group said.
The inventory of unsold homes on the market fell about 7 percent to 3.3 million. That's a 7.2 month supply at the current sales pace, close to a healthy level of about six months.
Lawrence Yun, the Realtors' chief economist, cautioned that the recovery will depend on whether the economy starts adding jobs in the second half of the year.
Total sales for 2009 closed out the year at 5.16 million, up about 5 percent from a year earlier. And some real estate agents say they feel encouraged. More buyers are shopping around this month than in a typical January, said Kevin O'Shea, an agent with Homes of Westchester Inc. in White Plains, N.Y.
"There are indications that the economy is coming back, and that makes buyers feel more secure to purchase," he said.
But many analysts project that home prices, which started to rise last summer, will fall again over the winter. That's because foreclosures make up a larger proportion of sales during the winter months, when fewer sellers choose to put their homes on the market.
Despite fears that home prices are starting to fall again, some analysts still say the worst is over.
"We do not believe it is fair to consider this a double dip in the housing market," Michelle Meyer, an economist with Barclays Capital, wrote last week. "The recovery is still under way but hitting some bumps in the road."

Bang for your buck!

Page Sullivan — Fri, 12 Feb 2010 21:19:00 GMT

If you are thinking of remodeling before you sell your home, read this.

If you want someone to buy your house, sell them the kitchen.

That was an oft-repeated message here recently at the International Builders Show, which is the annual convention of the National Association of Home Builders. The trade show featured literally hundreds of seminars on all aspects of housing, including numerous presentations on how to deck out a kitchen in order to make the whole house a more saleable thing.

The economy and just plain consumer fickleness have conspired to make kitchen "desirability" a moving target -- a slow-moving target, but moving, nonetheless, and consumers need to pay attention, because kitchen design trends translate into dollar signs, they said.

Cash is King in todays real estate market.

Page Sullivan — Fri, 12 Feb 2010 21:11:00 GMT

Recent studies show that people who are buying foreclosure properties should have cash rather than a promise of a loan in order to take advantage of discounted properties.

The market scuffle is happening primarily over heavily discounted foreclosed homes and other properties typically under $300,000, or even well below $100,000 in some markets. These homes are attractive to investors seeking a good return and first-time buyers looking for an affordable home.

The trend is most pronounced in areas of California, Florida, Arizona, Nevada and elsewhere where home prices have dropped sharply and foreclosures make up a large slice of homes for sales in many metro areas. In Las Vegas and Phoenix, for example, foreclosures accounted for more than half of all home resales in December, according to MDA DataQuick.

Although getting financing for heavily damaged foreclosures can be difficult, there's still a healthy competition. Ultimately, cash is king.

"Even though a first-time buyer may be offering the same price as an investor, or a higher price, the investor has the edge," said Jed Smith, a researcher for the National Association of Realtors. "The investor may actually pay less, but it's cash, right now."

Home maintenance: some helpful hints

Page Sullivan — Fri, 12 Feb 2010 19:40:00 GMT

Here are some tips and tasks which came from www.homeinspectorlocator.com. You can vist this link for more in depth information.

One time tasks:

1. locate and mark the shut-offs for the heating, electrical and plumbing systems.

2. Install smoke detectors

3. change the locks on all doors

4. have chimneys inspected and serviced before operating

Check tomorrow's blog for regular maintenance items.

Taos is # 13 in the top 100 places to visit

Page Sullivan — Wed, 10 Feb 2010 17:58:00 GMT

National Geographic Travelor listed 133 Destinations in the world. Taos, new Mexico cam in number 13. You can find the article at traveler.nationalgeographic.com I must say that I agree with their choice. Taos is fantastic

Luxury Properties: Ideas for a down market

Page Sullivan — Fri, 04 Sep 2009 19:09:00 GMT

Sellers Offer Overnight Trial Stays
Luxury second-home communities are increasingly offering “try-before-you-buy” weekends to potential customers, including the opportunity to play a round of golf, use the dining facilities and other amenities – plus take a mandatory tour.

St. John Fisher College professor Kyle F. Reinson, a real estate specialist and consultant for residential developers, says these tours work in part because they require a certain level of commitment on the part of both the buyer and the seller. The buyer, he says, often gets a good price because the seller doesn’t want to let him get away.

At Encaterra in Queen Creek, Ariz., four-day, weekend tours that cost the potential buyer $299 for an all-inclusive package, results in 25 percent sales, the club reports.

What is happening with Commercial Properties?

Page Sullivan — Fri, 04 Sep 2009 19:07:00 GMT

More Losses Predicted for Commercial Market
Ranked among the biggest U.S. commercial real estate lenders by Moody's Investors Service, Capmark Financial Group Inc. recorded a $1.6 billion quarterly loss and hinted at a possible Chapter 11 bankruptcy filing.

The Pennsylvania-based firm's possible failure may signal a new wave of commercial property losses for banks.

Capmark has seen tough times, as the default rate on commercial mortgages held by U.S. banks has more than doubled to the highest level in 15 years.

Sam Chandan, chief economist at Real Estate Econometrics LLC, warns: "We haven't really experienced the full extent of the distress. When you look at community banks and some smaller regional banks, they tend to have a far greater concentration in terms of their exposure to commercial real estate."

First Time Home Buyers Incentive Time Clock

Page Sullivan — Fri, 04 Sep 2009 19:03:00 GMT

Home Buyer Tax Credit Countdown Begins
The first-time home buyers tax credit ends in 60 days. Is it possible to buy in the next two weeks and still close in time to collect it?

Some professionals say yes. “It still can be done in six weeks," says RE/MAX Town & Country associate Lynn Ayers in West Chester, Pa.

Economist Ken Gillen of Econsult predicts a mad rush to close as the deadline nears.

Bruce Hahn, president of the American Homeowners Grassroots Alliance in Arlington, Va., is pushing for an extension and an expansion of the credit.

Legislation to do that is critical, he says, because the recovery has so far been mostly jobless and people need more time to get their feet on the ground in order to buy.

Current information about getting loans

Page Sullivan — Mon, 08 Jun 2009 21:26:00 GMT

This article came from Taos Lending Team. Good information I think.

With all the hullabaloo about lower rates and bailout monies given to banks one would think there would be a higher percentage of closed and funded loans. Sadly the banks continue to hold on TIGHT to their money; as we have seen a higher increase in declined loans in the past 6 months than I have ever experienced in my 28 years in this business.

Borrowers are fitting all the tighter requirements but lenders are not relaxing their property requirement. In fact banks are using the stricter Fannie Mae and Freddie Mac guidelines to underwrite a property which doesn’t make any sense; where in the country are there 3 months comps? Taos is seeing areas of declining markets and this is now being reflected on appraisals. I am sure many of you have spoken to our local appraisers who are also getting frustrated with the extra work and the lending industry in general.

Declining markets move appraisals up the corporate chain to desk reviews and requests for secondary appraisals. These cost the borrower more money and there are no guarantees for lender approval after the extra funds have been spent.

I have received concerned and confused calls from many clients who have initiated their own refinances with their existing lenders only to be declined on a property which was approved last year. Some of these properties have been improved upon since the initial loan and have increased values! Why are they being declined? The good Comps are farther away than the required 5 mile radius because of the slow down in the real estate markets.

Using private investors for our really good loans is no longer an option as so many of their portfolios have shrunk. We continue to shop our loans and push hard to get them closed and funded.

As is evident, there is no more give or common sense in the system.

News

As you know the markets have been erratic since the declaration of the GM bankruptcy and Treasuries and Bonds are on the rise. Panic sets in and reactions are as expected around the globe and within our mortgage markets, hence the higher interest rates. Obama’s home affordability stimulus plan is predicated on lower interest rates to help homeowners keep their homes so patience and standing by is in order if you have not already been locked in with a lower interest rate.

Below is a terrific article on Bernanke and the housing markets from Bloomberg.com.

Bernanke Conundrum Threatens Housing on Mortgage Rate (Update3)

June 8 (Bloomberg) -- The biggest price swings in Treasury bonds this year are undermining Federal Reserve Chairman Ben S. Bernanke’s efforts to cap consumer borrowing rates and pull the economy out of the worst recession in five decades.

The yield on the benchmark 10-year Treasury note rose to 3.90 percent last week as volatility in government bonds hit a six-month high, according to Merrill Lynch & Co.’s MOVE Index of options prices. Thirty-year fixed-rate mortgages jumped to 5.45 percent from as low as 4.85 percent in April, according to Bankrate.com in North Palm Beach, Florida. Costs for homebuyers are now higher than in December.

Government bond yields, consumer rates and price swings are increasing as the Fed fails to say if it will extend the $1.75 trillion policy of buying Treasuries and mortgage bonds through so-called quantitative easing, traders say. The daily range of the 10-year Treasury yield has averaged 12 basis points since March 18, when the plan was announced, up from 8.6 basis points since 2002, according to data compiled by Bloomberg.

“Volatility has increased dramatically and it seems to get more each day,” said Thomas Roth, head of U.S. government-bond trading in New York at Dresdner Kleinwort, one of the 16 primary dealers of U.S. government securities that trade with the Fed. “A lot of that has to do with uncertainty about whether the Fed will increase purchases of Treasuries. The market is looking for some change in the Fed’s plan.”

Greenspan’s Conundrum

The rise in borrowing costs in the face of record low interest rates, Fed purchases and a contracting economy is the opposite of the challenge Bernanke’s predecessor, Alan Greenspan, confronted when he led the Fed.

In February 2005, Greenspan said in the text of his testimony to the Senate Banking Committee that a decline in long-term bond yields after six rate increases was a “conundrum.” At the time, he was trying to keep the economy from overheating and sparking inflation. Now, Bernanke may be facing his own.

“The Fed is stuck in a very difficult place,” said Mark MacQueen, a partner at Austin, Texas-based Sage Advisory Services Ltd., which oversees $7.5 billion. “You can’t have it both ways. You can’t say I’m going to stimulate my way out of this problem with trillions of dollars in borrowing and keep rates low by buying through the other. I don’t think that is perceived by anyone as sound policy.”

The yield on the benchmark 3.125 percent 10-year Treasury due May 2019 ended last week at 3.83 percent, up from the low this year of 2.14 percent on Jan. 15, according to BGCantor Market Data. Last week’s 37-basis-point surge equaled the most since the increase of 37 basis points, or 0.37 percentage point, in the period ended July 17, 2003. The yield fell 3 basis points today to 3.8 percent at 8:22 a.m. in New York.

‘Don’t Do Anything’

Bernanke and other Fed officials say the improved economic outlook and rising federal budget deficit are the catalysts for higher borrowing rates, and see no need to increase purchases of bonds. Plus, the Fed has succeeded in shrinking the gap between 10-year Treasury yields and 30-year mortgage rates to 1.77 percentage points from 3.37 percentage points in December.

“To the extent yields are going up because the economic outlook is brighter, the answer would be, don’t do anything,” Federal Reserve Bank of New York President William Dudley said in a transcript of an interview with the Economist last week.

U.S. payrolls fell by 345,000 last month, the least in eight months, the Labor Department said June 5. The economy will likely expand 0.5 percent in the third quarter, according to the median forecast of 63 economists surveyed by Bloomberg.

Wider Deficit

The deficit should reach $1.85 trillion in the fiscal year ending Sept. 30 from last year’s $455 billion, according to the Congressional Budget Office. Goldman Sachs Group Inc., another primary dealer, estimates that the U.S. may borrow a record $3.25 trillion this fiscal year, almost four times the $892 billion in 2008.

While rising, 10-year yields are below the average of 6.49 percent over the past 25 years, and will likely remain below 4 percent through at least the third quarter of 2010, according to the median estimate of 50 economists surveyed by Bloomberg. The Fed’s holdings of Treasuries on behalf of central banks and institutions from China to Norway rose by $68.8 billion, or 3.3 percent, in May, the third most on record, data compiled by Bloomberg show.

Higher rates may deepen the two-year housing slump helped trigger the recession and sideline consumers planning to refinance or buy their first home. The median sale price for a U.S. home dropped in April to $170,000, down 26 percent from a record $230,000 in July 2006, according to the National Association of Realtors.

Refinancing Index

The number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, largely on cheaper financing costs, according to the realtors group. The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan fell 16 percent to 658.7 in the week ended May 29 as borrowing rates climbed.

“The more rates go up, the more we need home prices to go down to equalize consumers’ payments,” said Donald Rissmiller, chief economist at New York-based Strategas Research Partners. “It’s those payments that have brought about a level of stability” in home sales, he said.

Rising volatility, this exposes investors to bigger potential losses, risks pushing up rates on everything from mortgages to corporate bonds. Norfolk Southern Corp., the fourth-largest U.S. railroad, sold $500 million of 5.9 percent debt on May 27. The coupon was higher than on the $500 million of 5.75 percent notes due in 2016 that the Norfolk, Virginia- based issued in January.

‘The Big Question’

“When the Treasury market is moving around a lot more it becomes more risky to step in,” said James Caron, head of U.S. interest-rate strategy in New York at Morgan Stanley, another primary dealer.

Outside of Dudley’s remarks, the Fed has largely refrained from public statements about bond purchases. Traders find that confusing from Bernanke, a former economics professor at Princeton University who published research on central bank transparency and pushed for greater openness at the Fed.

“The big question is what the Fed does. Do they increase quantitative easing?” Caron said. “Do they buy more Treasuries or mortgages? That is why there is a lot more uncertainty.”

Investors are reining in the average maturity of their Treasury holdings to guard against higher yields. That may increase costs for the government, which intends to extend the average maturity of its debt after committing $12.8 trillion to thaw frozen credit markets and snap the longest economic slump since the 1930s. The Treasury will sell $65 billion in notes and bonds next week.

Shorter Durations

Over the past month, money managers overseeing about $100 billion shortened the durations of their portfolios, according to Stone & McCarthy Research Associates in Skillman, New Jersey.

Duration, a reflection of how long the debt will be outstanding, dropped to 100.9 percent of benchmark indexes in the week ended June 2, the lowest in almost four months and down from 102 percent in the week ended May 5. The ratio was as high as 103.7 percent in the period ended March 10.

Shorter-term Treasuries, whose lower duration means price swings are smaller relative to longer-maturity debt for the same change in yield, have performed better this year with the Fed keeping its target rate for overnight loans between banks at a range of zero to 0.25 percent.

Two-year notes have lost 0.4 percent, including reinvested interest, compared with losses of 11.5 percent on 10-year securities and 27.9 percent for 30-year bonds, according to Merrill Lynch index data.

‘Predictable Ways’

The Fed probably won’t make any adjustments to the size of the Treasury purchase program before its next policy meeting on June 23-24, in part to avoid reinforcing perceptions policy is reacting to swings in yields, according to Jim Bianco, president of Chicago-based Bianco Research LLC.

“The Fed wants to operate in predictable ways,” Bianco said. “They are also trying to not just look arbitrary, which makes people think ‘I can’t ever go to the bathroom because there could be a press release that the Fed changed the buybacks.’ That’s been a real concern: ‘Wow, I just went to the bathroom and lost $2 million dollars.’”

Summary

While we continue to be patient, it doesn’t appear that patience is really getting us any where. Being proactive and creative is how we continue to stay on top of this crazy and unpredictable industry.

Thank you for your time and consideration.

Sincerely,
Elisabeth Guillemin

Home Buying or Investing

Page Sullivan — Fri, 01 May 2009 21:43:00 GMT

National pundits think that the Real Estate Market is near the bottom. It would be a great time to think about buying properties.

Housing Analysts Predict the Bottom Is Near
The bottom of the housing decline is near, predicted analysts and home builders attending the National Association of Home Builders’ semiannual Construction Forecast Conference last week.

Mark Zandi, chief economist of Moody’s Economy.com, facetiously picked a date when home prices would stop falling: Dec. 15, 2009. Other observers weren’t so precise, but they did generally agree that the federal government’s efforts to shore up the market would take effect by the end of 2009 or early in 2010.

Analysts also predicted that consumers will spend less on remodeling. Eric Belsky, executive director at Harvard University’s Joint Center for Housing Studies, predicted that spending on remodeling would fall 12.3 percent by the end of this year compared to last.

Analysts project that the credit crisis will loosen, although people with blemished credit records may continue to have trouble getting mortgage loans.

Tips for buying and selling via email

Page Sullivan — Fri, 01 May 2009 21:39:00 GMT

Article from Realtor Magazine:Tips for Buying and Selling Via E-Mail
Buying property electronically — no matter how complex the deal — is becoming increasingly common.

Legal and communication experts offer some advice to those who rely on e-communication to buy and sell:

Be careful what you put in writing. “[E-mail is] a different type of written negotiation that people in the industry have never been trained for,” says Diane Levine, a lawyer and manager for Sotheby’s International. “I think [associates] should be careful to have a plan in mind and not just let it be about spitting everything out in the next e-mail.”
Arguments via e-mail can go wrong. If things get heated, pick up the phone or meet face-to-face.
The truth isn’t necessarily the truth. Terri R. Kurtzberg, an associate professor of management and global business at Rutgers Business School, conducted a study of online communications. She found that people aren't always as honest when they communicate via e-mail compared to other forms of communications. They don’t ask pointed questions well online and are sometimes reluctant to reveal their own interests, she said.
Sarcasm doesn’t translate. Flip remarks and off-the-cuff humor can kill a deal. It’s much smarter to write in formal language, advises Kathleen L. McGinn, a professor of business administration at the Harvard Business School, who is an expert is resolving conflict.

Source: The New York Times, Vivian S. Toy (04/24/2009)

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National news: house prices tumble but not to record extend

Page Sullivan — Tue, 28 Apr 2009 22:08:00 GMT

Interesting, but not boggling.

NEW YORK - In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record.

The Standard & Poor’s/Case-Shiller index released Tuesday showed home prices in 20 major cities tumbled by 18.6 percent from February 2008. That was slightly better than January’s 19 percent and the first time since January 2007 the index didn’t set a record.

But the good news was mixed. All 20 cities in the report showed monthly and annual price declines, but half recorded annual records. Prices fell by more than 10 percent in 15 cities, including Las Vegas, San Francisco and Phoenix. In fact, Phoenix home prices have lost more than half their value since peaking in July 2006.

Taos Parking

Page Sullivan — Tue, 28 Apr 2009 21:34:00 GMT

The free parking is gone: here is the article from the town. get your quarters ready!

) Parking Meter Program: Now that the Town of Taos two-hour free metered parking pilot program has been determined to be complete, attached is the proposed, revised parking program for the downtown historic district.

As of June 1, 2009, locals and visitors again need to “feed the meters”, with various scenarios about parking improvements to be part of the plan/revenues generated moving forward (see attachment).

The attached map also highlights the all-day free parking that the Town provides in various lots such as Loretto, Town Hall/Taos Library, and the TCA. The Town pays for these lots at an annual cost of $42,000. The revenue ‘lost’ by the Town through the two-hour free parking program and its loss of parking ticket revenues has been approximately $300,000 per year.

There are some additions to the plan out of today’s meeting that will potentially be part of the program – one of them being free parking to be allowed at the Town’s parking meters during lunchtime, from 12 to 1 p.m. (to specifically accommodate local shoppers). These will be further detailed by the committee that developed the attached plan and presented to Council for consideration. This plan was developed by a group comprised of the Town representatives, concerned citizens, Taos County Chamber of Commerce, representatives of the Central Business District Merchants, and others.

New faster paced loans

Page Sullivan — Fri, 24 Apr 2009 18:38:00 GMT

New information on loans.

FHA Streamlines
Get on the streamline train today! Get to the closing table in a few weeks. The FHA streamlines are closing fast and furious. This market continues to perform well. If you are looking for fast closing qualified streamlines candidates look no further. Wall Street List has FICO scored FHA streamlines candidates ready to close. Everyone on the list has a 620+ FICO with no late payments. These are pre approved FHA borrowers just waiting to have their rate lowered.

Fannie Mae Streamlines
These new to the market streamlines are going to be fast to the closing table. The recent drop in rates will make these a slam dunk for a fast closing. You can get these borrowers to the closing table quick and easy. Everyone on the list has NO LATE PAYMENTS in the last 12 months. Throw in a 680+ FICO and you will be closing real fast.

VA Streamlines
The Veterans have never seen rates this low. This is another slam dunk if you write VA loans. Get these Veterans the rates they deserve. These are also fast and easy to close. Try the Wall Street List scored VA data file. Everyone the list is pre approved to refinance.

Reverse Mortgage
Looking to ramp on the reverse candidates? Wall Street List has qualified reverse candidates with a late payment looking to get out of their mortgage and into a reverse mortgage. No need to waste time on borrowers that are not interested. Start talking to motivated borrowers who need your service.

Advice to Buyers and Sellers about Price

Page Sullivan — Wed, 08 Apr 2009 22:44:00 GMT

One of the hardest things a Buyer and/or Seller have to do is to IGNORE the opinions and advice about Real Estate from people who are not professionals in the market. Ask a Realtor for statistics about the current market and the current market value of properties.The statistics don't lie. Your friends and family can give you opinions about location or design but not about price. Market value is determined by what the current market will bear. In other words, what someone is willing to pay for a property. Last year's prices are not relevant in today's market. You want statistics which are current: In today's market ask for stats for the last three months, or if you are in a volatile market, ask for statistics for the last month.

Foreclosure Scam

Page Sullivan — Mon, 06 Apr 2009 22:25:00 GMT

Please read this article: scary

The rapid rise in home foreclosures has spawned a wave of 'rescue' scams that prey on vulnerable homeowners. Here's how to avoid becoming a victim.

How it Works

The pitch

Foreclosure rescue firms use a variety of tactics to find homeowners in distress: Some sift through public foreclosure notices in newspapers and on the Internet or through public files at local government offices, and then send personalized letters to homeowners.

Others take a broader approach through ads on the Internet, on television or in the newspaper, posters on telephone poles, median strips and at bus stops, or flyers or business cards at your front door.

The scam artists use simple messages and broad promises, like: "Stop Foreclosure Now!" or "We can save your home!" A legitimate housing counselor will explain the hurdles in stopping a foreclosure and the risk that it may not be possible.

The claims

"We guarantee to stop your foreclosure."

No one can guarantee to stop a foreclosure except the lender.

"We have special relationships within many banks that can speed up case approvals."

Scammers offering to contact lenders charge a fee for making a call any homeonwer can make for free. In most cases, lenders won't negotiate with a third party other than a homeowner's attorney or a HUD-certified credit counselor acting on behalf of a homeowner.

"We stop foreclosures every day. Our team of professionals can stop yours this week!"

Preventing a foreclosure, especially once the process has begun, is a lengthy, complex procedure that involves negotiations with a lender over a repayment plan or modification of the original loan terms.

Red flags

No legitimate housing counselor will:

• Guarantee to stop a foreclosure
• Tell you not to contact your lender or lawyer
• Collect a fee before providing you with services
• Ask for payment only by cashier’s check or wire transfer
• Encourage you to lease your home and buy it back over time
• Collect mortgage payments from you directly
• Tell you to transfer your property deed or title
• Offer to buy your house for cash
• Offer to fill out paperwork without explaining it in detail
• Pressure you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

The Scams

Phony counseling

The scammer offers to negotiate a deal with your lender to save your house in exchange for an upfront fee, often equal to one month's mortgage payment.

You may be told not to contact your lender, lawyer, or credit counselor, and to let the scam artist handle all the details. Once you pay the fee, the scam artist takes off with your money.

Sometimes, the scam artist insists that you make all mortgage payments directly to him while he negotiates with the lender. In this variation, the scammer may collect several months of payments before disappearing.

Bait and switch

The scammer offers to arrange a new loan to make a victim's existing mortgage current.

When the homeowner signs the "new loan," the scammer includes documents that turn over the title of the house to the scam artist. In some cases, the scammer uses the title to defraud a new lender by taking out a second loan on the property and pocketing the proceeds.

Victims of this scam often don't learn they've been cheated until they get an eviction notice.

Rent-to-Buy Scheme

The scammer offers homeowners a deal to let them stay in their homes as a renter and then buy it back over the next few years.

Victims are sometimes told that surrendering the title will allow a borrower with better credit rating to get new financing – and prevent the loss of the home.

But the terms of the deal are so burdensome it becomes impossible to buy back the house. Victims lose their home, and the scam artist walks off with all or most of the home’s equity.

When the scammer defaults on the new loan, the original homeowner is evicted.

Sometimes, the scam artist raises the rent over time to the point that the former homeowner can’t afford it. After missing several rent payments, the renter – the former homeowner – is evicted, leaving the “rescuer” free to sell the house.

Equity skimming

In this fraud, the scam artist offers to find a buyer for a homeowner facing foreclosure, but only if he or she signs over the deed and moves out. The scam artist promises to pay a portion of the profit when the home sells.

Once the deed is transferred, the scam artist rents out the home and pockets the proceeds while the lender proceeds with the foreclosure.

Victims of this scam lose their home - but they're still responsible for the unpaid mortgage. Contrary to the scammer's promises, transferring a deed to another party doesn't end a homeowner's responsiblity to pay back a mortgage.

Unauthorized bankruptcy

In this version, the scam artist promises to negotiate with the victim's lender or to get refinancing on his or her behalf in exchange for an upfront fee.

Instead, the scammer pockets the fee and enters a bankruptcy filing in the victim's name -- sometimes without the victim's knowledge -- by forging a signature or concealing the true nature of the paperwork.

Though a bankruptcy filing often suspends a foreclosure, it doesn't end it permanently. Once in bankruptcy, the victim faces additional legal costs and bears the burden of a credit record that will make it difficult to buy or rent a new home for as long as 10 years.

Get Real Help

Contact your lender

This is not always easy to do, but it’s the first step to take if you’re having trouble paying your mortgage. Start with the customer service number on your mortgage statement. Ask if the company owns your loan or is “servicing” – collecting monthly payments - for the lender that holds your mortgage.

One of the reasons rescue fraud is so prevalent is that lenders have been swamped with foreclosures and, until recently, not well prepared to work out loan modifications. The government’s Making Home Affordable program, which took effect March 4, sets aside $75 billion in incentives to try to spur lenders to refinance loans for borrowers in trouble.

If you’ve gotten a default or foreclosure notice, reply as soon as possible. Contact an attorney or HUD-approved counselor for help. The longer you wait the more difficult it will be to save your home.

Dealing with your lender

Before calling, get prepared. Lender agents will want to know your income and expenses and the equity in your home – the difference between what your home is worth and what you owe on any mortgages or home equity loan.

They’ll also want to know why you missed your payments. If you’ve had a temporary setback, they’ll want to know what steps you’re taking to get back on your feet.

Try to come up with a reasonable plan before you make the call. If you want to keep your home, work out a payment proposal that’s feasible. If you don’t think you can afford your mortgage, consider discussing options that prevent a foreclosure – even though you’ll lose your home.

Keep notes of all contacts with your lender or servicer, including the date and time, whether it was in person, or by phone, e-mail, fax or mail, the name of the person and the outcome.
Follow up any requests you make with a letter. Send it by certified mail, “return receipt requested,” so you can document what the lender or servicer received. Keep copies of your letter and any enclosures.

Meet all deadlines your lender or servicer gives you.

Stay in your home during the process, since you may not qualify for certain types of assistance if you move out. Renting your home will change it from a primary residence to an investment property and most likely disqualify you for any additional “workout” assistance from the servicer. If you choose this route, be sure the rental income is enough to help you get and keep your loan current.

Find a certified counselor

Foreclosure rescue scammers often pose as companies affiliated with legitimate housing and credit counselors. These real counselors, trained to deal with a variety of credit problems, usually provide help for free or a small charge and are certified by the Department of Housing and Urban Development.

You can find a certified counselor by clicking on this HUD Web site.

Other national groups. Like the National Foundation for Credit Counseling and Neighborworks America can also provide referrals.

Make sure you’re dealing with the right Web sites. Some scammers have set up Web sites designed to look like the real thing. Others have hijacked paid search terms using legitimate foreclosure counseling resources to steer victims to their sites.

HOPE NOW

You also can contact a credit counselor through the nonprofit Homeownership Preservation Foundation, which operates a 24/7 toll-free hotline (1.888.995.HOPE) with free help for homeowners at risk of foreclosure.

HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. More information about HOPE NOW is available at its Web site.

Report fraud

If you think you’ve been a victim of foreclosure fraud, do your neighbors a favor and try to put the scammer out of business.

To do so, file a complaint with one of these agencies:

Federal Trade Commission
You can file a complaint online or call toll-free, 1-877-FTC-HELP

Your state attorney general
Look for the Consumer Affairs office on your state’s Web site. Many states have set up special task forces to deal with mortgage fraud.

Real Solutions

Forbearance

This is a relatively uncommon solution in which your lender agrees to cut or suspend your mortgage payments until you can start paying again and make up the missed payments.

This is usually only a option if you can show that your income is reduced temporarily (for example, you are on disability leave from a job, and you expect to go back to your full-time position shortly).

Forbearance isn’t going to help you if you’re in a home you can’t afford.

Loan modification

Under this option, you and your loan servicer agree to permanently change one or more of the terms of the mortgage contract to make your payments more manageable for you.

Under the government's recent foreclosure relief plan, modifications typically start with reducing the interest rate and extending the term of the loan to reduce monthly payments.

Missed payments are added to the new loan balance. A modification also may involve reducing the amount of money you owe on your primary residence by forgiving, or cancelling, a portion of the mortgage debt.

A loan modification may be necessary if you are facing a long-term reduction in your income or increased payments on an ARM.

Before you ask for forbearance or a loan modification, be prepared to show that you are making a good-faith effort to pay your mortgage. For example, if you can show that you’ve reduced other expenses, your loan servicer may be more likely to negotiate with you.

Selling your home

Depending on the real estate market in your area, selling your home may provide the funds you need to pay off your current mortgage debt in full.

Your lender or servicer may postpone foreclosure proceedings if you have a pending sales contract or if you have put your home on the market.

This approach works if proceeds from the sale can pay off the entire loan balance plus expenses such as agent fees.

A sale can allow you to avoid legal fees and damage to your credit rating, and protect your equity in the property.

Bankruptcy

Personal bankruptcy generally is considered the last option. A bankruptcy stays on your credit report for as long as 10 years, and can make it difficult to get credit, buy another home, get life insurance or even get a job.

Still, the process was created to offer a fresh start for people who can’t satisfy their debts.

If you have a regular income, Chapter 13 may allow you to keep property, like a mortgaged house or car, that you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income toward payment of your debts during a three-to-five-year period, rather than surrender the property.

After you have made all the payments under the plan, you receive a discharge of certain debts.

Short sale

Your lender or servicer may let you sell your house before foreclosing on the property and forgive any shortfall between the sale price and the mortgage balance.

This approach avoids a damaging foreclosure entry on your credit report. Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence may be excluded from income when calculating the federal taxes you owe, but it still must be reported on your federal tax return.

If you decide on this option, make sure you get the lender's approval and settle on a short sale price before trying to find a buyer. Many short sales fall through because the buyer isn't willing or able to wait for the sometimes lengthy approval process.

Deed in lieu of foreclosure

With your lender or servicer's permission, you transfer your property title to them in exchange for cancellation of the remainder of your debt.

Though you lose your home, a deed in lieu of foreclosure can be less damaging to your credit than a foreclosure. You will lose any equity in the property, although under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence can be excluded from income when you file your federal tax return. (You still have to report it.)

A deed in lieu of foreclosure may not be an option if you have more than one loan secured by your home.

Source: Federal Trade Commission, Dept. of Housing and Urban Development

URL: http://www.msnbc.msn.com/id/30071125/

Real Estate: Where housing is heading.

Page Sullivan — Fri, 03 Apr 2009 17:24:00 GMT

Where Housing is Headed

We received an important indicator of where housing is headed last month, when new mortgage applications for home purchases and refinances suddenly surged as they hadn't in months.

Applications for FHA loans to buy houses were up by 10.4 percent. And overall home purchase applications jumped by 7.1 percent.

Meanwhile mortgage interest rates dropped to their second lowest level in nearly two decades, according to the Mortgage Bankers Association. Thirty year fixed rates averaged 4.96 percent and fifteen year rated dropped to just 4.5 percent.

Why's this important? New financing applications to buy homes obviously point to rising purchase contracts and closed sales in the months ahead. They also suggest that prices have hit a level in many markets that is attracting once-hesitant buyers off the sidelines.

There's still another factor that's likely at work here as well: Congress's recent improvements to the home purchase tax credit -- pushing it to $8,000 from $7,500 and making it non-repayable. George Ratiu, research economist for the National Association of Realtors, says the big jump in loan applications could be tied to the improved credit in the stimulus package signed into law last month.

"Consumers may be responding to the stimulation" effect of the better credit for 2009, he said.

But let's be clear here: A rise in home purchase applications does not suggest we've turned the corner in the cycle or have solved the multiple challenges facing markets around the country -- high foreclosure levels, continuing domination in some areas of REO and short sales, and continuing increases in the unemployment rate.

Even amid these problems, however, there are some hints of possible improvements ahead. For example, a new study by research firm Realty Trac and USA Today found that despite the constant headlines about record levels of foreclosures, the more closely you look, the more you find that those numbers are highly concentrated in a relatively small number of counties.

More than half of the nation's foreclosures in 2008, researchers found, were concentrated in just 35 counties in 12 states. You can guess where: California, Las Vegas, Phoenix and Florida.

But the really eye-opening finding: In more than 650 other counties, representing one fifth of all markets in the U.S., foreclosure numbers have actually declined since 2006.

Foreclosures are horrible no matter where they occur. But the fact is: Huge portions of the United States have NOT been seeing record foreclosures, short sales or even serious property value declines. They're doing better.

Written by Kenneth R. Harney

Taos: How to wow Buyers for your home.

Page Sullivan — Fri, 03 Apr 2009 17:20:00 GMT

These are some hints about preparing you home for sales and what buyers might like.

These days, tax credits and high housing inventory make it a buyers' market. If you're a seller, don't despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.
Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other

Mortgage Rates
U.S. averages as of March 26, 2009:

30 yr. fixed:   4.85%
15 yr. fixed:   4.58%
1 yr. adj:        4.85%
30 yr. jumbo:  6.98%-->

View current rates

creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.

Taos Real Estate Market Statistics for February, 2009

Page Sullivan — Wed, 01 Apr 2009 20:59:00 GMT

These statistics show information about Residential Listings in different price ranges. There is a small section on land and commercial listings as well. If you have any questions about these, call me.

Market Statistics for March 2009

Type of listing	# Listed	New on the Market in March	Pend ing	Sold in March	Sold in the Past Year	Sold Avg. DOM*	Years of Inventory
ALL RESIDENTIAL	908	50	55	16	345	276	2.63

100,000 - 200,000	162	12	16	4	83	318	1.95
200,001 – 300,000	198	10	13	4	90	297	2.2
300,001 – 400,000	147	6	11	2	62	221	2.37
400,001 – 500,000	121	5	5	0	27	304	4.48
500,001 – 600,000	61	5	2	2	17	261	3.58
600,001 – 700,000	49	1	2	0	12	294	4.08
700,001 – 800,000	35	2	0	0	5	492	7
800,001 – up	84	5	4	0	12	289	7

LAND	1116	41	19	5	176	306	6.34
COMMERCIAL	94	6	3	1	10	350	9.4

Note: *DOM = Days on the market.

Taos Art Opening April 3, 2009

Page Sullivan — Wed, 01 Apr 2009 20:51:00 GMT

This should be great. If you are in town, go by to see some of the fabulous fiber arts.

Woven connections: Artists from 'Beyond the Fringe' explore nontraditional use of fiber

When reverence for artistic tradition meets raw passion, courageous innovation is born. "Beyond the Fringe," a fine fiber art exhibition featuring 13 local artists, is a celebration of this journey.

Curated by Merce Mitchell, the show opens with a reception Friday (April 3) from 5-7 p.m. at the Stables Gallery of the Taos Center for the Arts, 133 Paseo del Pueblo Norte.

It includes works by Mitchell, Abigail Z, Twilight, Nina Silfverberg, Carolyn Hinske, Kimberly Hamill, Lizzie Gulick, Faith Welsh, Connie Fernández, Mary K. Lyon, Pat Dozier, Noel Anderson and Violette Alby.