MI Earth Day

The MI Earth Day Fest in Rochester, April 23-25, offers a wide variety of fun, informative, healthy and earth-friendly experiences. Throughout the weekend, you'll enjoy over 200 green and wellness exhibits, displays, presentations, networking roundtables, organic food service, entertainment, kids' corner, a farmers market, petting farm, and many special activities including a parade and trail race. On Friday and Saturday evenings, a Party for the Planet organic beer/wine tent will round out the festivities.
Earth Day Fest website

ROLLERCOASTER RIDE!!!

The residential real estate market went on quite a roller-coaster ride in the past decade, rising to mid-decade peaks only to fall into the trough it remains in as of late 2009. While it may seem like real estate prices will never rise again - just like it seemed that they would never stop rising earlier in the decade - the real estate market is, at its heart, cyclical, and what goes down is bound to rise again.

Many experts believe that the market will continue to fall through mid-2010 but will find a bottom by the end of the year. The exception: extremely distressed real estate markets in California, Nevada, Arizona and Florida, which are likely to continue to fall into 2011. In the longer term, a number of factors - including interest rates, foreclosures, currency valuations and unemployment rates - will determine how quickly home prices begin to appreciate again.

BUNNYVILLE AT THE ZOO

Bunnyville at the Detroit Zoo is the perfect way to hop into Spring. The event will take place this year on April 3, 2010 from 10 a.m. to 4 p.m.Sponsored by Meijer, Bunnyville will feature games and prizes, costumed characters, treats, crafts and plenty of entertainment. Kids and adults will have plenty of opportunities to visit and take pictures with the Easter Bunny at photo stations throughout the zoo. Bunnyville guests are encouraged to bring a canned or other non-perishable food item to be donated to Gleaners Community Food Bank. Admission for guests with a food donation is $5, parking not included. Zoo members are free but are also encouraged to bring a canned food donation. For more information visit the Detroit Zoo's Web site.

Is Home Equity Retirement Value Gone?

Moody's prediction could mean that hundreds of thousands of Americans may find it impossible to sell their houses without making payments to their banks to cover underwater home loans. In many parts of the country, which include large states like New York and Illinois, home prices will not rebound to 2006 levels until 2018 to 2022. In the states where prices have fallen the most values may not rebound until 2024, The prediction, if correct, means that Baby Boomers & even some of their older children may not be able to sell their home to help finance retirement.
Home equity loans will be out of the question. Some homeowners will have to give banks money to get out from under their houses, default because they cannot afford to sell their homes at a loss, or stay in homes that they no longer need. The housing crisis, it seems, still has at least 15 years to go and for some older Americans that is a lifetime.

MOODY'S IS BEARISH ON HOUSING RECOVERY

Moody's Investors Service threw cold water on optimistic projections of a V-shaped recovery in the battered U.S. housing market, predicting it could take more than 10 years to get back to boom-level prices. "For many reasons, the rebound will be disproportionately small compared to the decline," Moody's said this week in its latest outlook on the residential market. "It will take more than a decade to completely recover from the 40% peak-to-trough decline in national home prices."

The housing market is in the third year of the current downturn, one of the worst corrections in U.S. history as a result of the economic recession and the mortgage industry nearly grinding to a halt during the credit crunch.

"The bursting of the housing bubble precipitated a crisis in financial markets the likes of which have not been seen since the Great Depression and plummeted the nation into recession," Moody's said.

"The scars that this downturn will leave on the economy and the housing market will be long lasting and persist in nearly all facets of the housing industry, including the demand for homes, ownership patterns, homebuilding, and house price appreciation," the analysts forecast.
"It will take more than a decade for many measures of housing activity to regain ground that has been lost as a result of the correction: The intense downturn will overcorrect for the excesses in the housing market generated by the boom years," they added.
Complete article at: Moody's is Bearish

LOOKING FORWARD TO AN IMPROVING SPRING MARKET

February has picked up speed, indicating that the tax credits may be having a more significant impact than we had first projected. I am hearing stories of move-up buyers acting as a direct result of the $6,500 credit, which we had not expected. In addition, with inventories shrinking, we are moving towards a balanced market in some price ranges. Behind that good news there still continues an underlying weakness with inventories still in the Buyer's Market range for most price ranges (Months Supply of Inventory moving from 8 months to 4 months under $100,000 and from 24 to 9 months over $100,000 Feb 09' vs. Feb 08').

We still project a slowing market the second half of this year and it will feel even slower than it really is because of comparisons to a very strong second half of 2009.

A new wild card in the process is the implementation of HAMP (Home Affordable Modification Program - for loan modifications) and HAFA (Home Affordable Foreclosure Alternative Program - for short sales) in April. These two Federal initiatives are designed to reduce the number of foreclosures and stream line the Short Sale process. Their success will depend on the lenders ability to shift, staff up and train to the new program. We expect it to be a slow start, but, if effective, they do offer the opportunity to help offset the effects of the growing "Shadow Inventory" of delinquent, bank inventory and not yet foreclosed properties.

Although the market is by no means robust, this will be the best spring in the past three years for Sellers and in relative terms the best values in years for Buyers. A rare perfect moment for all parties!

The article is from our real estate company blog: "Lets Talk Real Estate"

5 Questions to Ask Before Considering a Reverse Mortgage

1. Do you really need a reverse mortgage? Why are you interested in these loans? What would you do with the money you would get from one? Are the needs you intend to meet really worth the high total cost of these loans?
2. Can you afford a reverse mortgage? These loans are very expensive, and the amount you owe grows larger every month.
3. Can you afford to start using up your home equity now? The more you use now, the less you will have later when you may need it more, for example, to pay for future emergencies, health care needs, or everyday living expenses.
4. Do you have less costly options? Do you have other financial resources that you could use instead of taking out a loan?
5. Do you fully understand how these loans work? Reverse mortgages are quite different from any other loans, and the risks to borrowers are unique. Before considering one, you need to do your homework carefully and thoroughly.

False Advertising & Unsuspecting Seniors

False advertising, while not new, is cropping up often enough in direct mail pieces to prospective reverse mortgage customers that public and private authorities are expressing concern. Often appearing as if it is coming from an official (i.e. government) source, the appeals offer to help unsuspecting recipients - usually seniors - take the necessary and proper steps to obtain this specialty financial product. "It is a source of concern," says Peter Bell, president of the National Reverse Mortgage Lenders Association, who notes that the mailings "are not coming from lenders, but lead generation companies that don't understand the product." He adds that the most common mailings "are impersonations of government agencies which are not stating that HECM/reverse mortgages are a loan program."

PROS & CONS OF REVERSE MORTGAGES

These loans come with onerous expenses, but they do have some redeeming value. Read about the pros and cons, and check out the link provided below.

1. You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.

2. Income from reverse mortgage generally does not affect Social Security or Medicare benefits.

3. Debt isn't passed on to heirs. Loan balance is deducted from proceeds of home sale.

4. If you "outlive the loan," meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.

5. Loan advances are generally not taxable.

6. Most loans do not have income requirements.

7. Homeowner retains title to home.

8. No payments are due until last surviving borrower dies, sells the home or no longer lives in home as primary residence.

9. HECM programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.

10. After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.

The downsides of reverse mortgages

1. Reverse mortgage proceeds could impact Medicaid eligibility.

2. Borrowers must be at least 62 years old to qualify.

3. Lenders generally charge origination fees and other closing costs that are usually steep.

4. Lenders require free debt counseling prior to loan application.

5. Lenders may charge servicing fees during term of the mortgage.

6. Debt increases over time as interest is charged to outstanding balance of loan.

7. Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR.

8. As home equity is used up, fewer assets are available to leave to heirs.

9. Interest is not tax deductible until the loan is paid off.

10. Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don't, the loan may become due.

DO YOUR HOMEWORK. Determine what type of reverse mortgage you might need. Do you need a one-time payment to help pay for home improvements or property taxes? Consider a single-purpose reverse mortgage. Call the Area Agencies on Aging to explore this option at 1-800-677-1116. Ask for information about loan programs for home repairs or improvements or for property tax postponement. To find an agency near you, visit www.eldercare.gov. Do you need money for another purpose altogether? Do as much homework as possible before contacting an HECM or proprietary lender.
Complete Article

REVERSE MORTGAGES - LOAN TYPES & COSTS

The most well-known and widely available reverse mortgage is the federally-insured Home Equity Conversion Mortgage (HECM). This loan is backed by the U. S. Department of Housing and Urban Development (HUD) and can be used for any purpose. It is generally offered by mortgage companies or banks.

Some state and local governments offer low-cost reverse mortgages that generally must be used for one specific purpose only, for example, to make home repairs or pay property taxes. Many of these "public sector" loan programs are only available to homeowners with low or moderate incomes.

"Proprietary" reverse mortgages are owned and backed by the private companies that develop them. These loans can be used for any purpose and are generally the most expensive type of reverse mortgage.

Loan costs can vary by a lot from one type of reverse mortgage to another. Not all reverse mortgages include the same types of loan costs. As a result, the true total cost of reverse mortgages can be difficult to understand and compare. This is the reason federal Truth-in-Lending law requires lenders to disclose a "Total Annual Loan Cost" for these loans.
AARP Loan Types article