Conditional Rescission of a Principal Residence Exemption

Governor Granholm signed a legislation enabling sellers to retain two principal residences exemptions under certain circumstances. The Conditional Rescission of a Principal Residence Exemption (PRE) allows sellers to receive a PRE on their current property as well a property they are selling for up to three years. The property has to be for sale, not leased, not used for any business or commercial purposes and not occupied.

Because of a difficult economy and employment hardships, some sellers have had to relocate out of necessity and put their house on the market. If a seller has been trying to sell his/her home for over a year, the property is no longer treated as a principal residence. This causes the tax rate to increase causing additional burden for the seller. This legislation is a huge step in aiding these sellers transition without additional tax burdens. It also helps them market their home because buyers want to pay a homestead rate in the first year of ownership instead of taking over the non-homestead rate until the property converts back to homestead.

If you think you qualify, contact The Buckley Jolley Real Estate Team. We will email or fax the one page form with instructions for filing. The deadline is April 30th this year.

Fannie Mae Creates Stricter Loan Requirements

Fannie Mae, the largest U.S. home funding company, announced on Monday that it will require a minimum credit score for loans it buys individually.

Fannie Mae uses credit scores as an indicator of how likely a customer will pay on timely basis. Fannie Mae is now requiring a minimum of a 580 credit score for most loans, and a few loans under special circumstances for under that score.

They are also lengthening the period needed for borrowers to reestablish their credit history after a foreclosure to five years from four years. If borrowers have "documented extenuating circumstances" which caused the foreclosure, that time might be shortened.

Fannie Mae is the largest provider of money for U.S. home loans.

For more information click here

For tips on raising your credit score, see our previous blog post:
Raise Your Credit Score Before You Apply For A Loan

Spring Forward With Daylight Savings This Weekend

Prepare to lose an hour's sleep this weekend, but in return get the trade-off of more sunlight in the evenings.

Officially the change to daylight-savings time should be made at 2 am on Sunday morning.

The shift also serves as a reminder to check the status of your batteries in your home's smoke detectors.

"Home sellers adjusting to today's 'new normal'"

On Friday, February 29, 2008, The Livingston County Community News features quotes from The Buckley Jolley Real Estate Team's own Todd Buckley & Karen Jolley in it's article "Home sellers adjusting to today's 'new normal'". Also featured are Buckley Jolley's clients Amanda and Mark Prince, who are selling their condo in the South Lyon area.

Check out the article on-line here.

Or click here to download in .pdf

9th Annual GOT ART Exhibit Coming This Weekend

The Livingston Arts Council is hosting their 9th Annual GOT ART Exhibit on March 8, 9, and 10th at The Opera House in Howell.

GOT ART is a diverse mix of youth art from Howell and Brighton schools. Last year more than 350 pieces of art were displayed, in many medias- oil, watercolor, sculpture and photography to name a few.

Admission is free of charge and the exhibit will be open Saturday, March 8 from 1 pm - 3pm; Sunday, March 9 from 11 am to 3pm; and Monday, March 10th from 3pm to 7pm.

Good News for Michigan as Foreclosures Decline

After seemingly endless bad news regarding Michigan's housing and economy woes, The Detroit News reports this morning that foreclosures in our state may possible have hit their peak and are in decline. The article indicates that Michigan foreclosure filings in January declined 7.03 percent compared to the same month a year ago.

The decline in foreclosures in Michigan contrasts with rising numbers throughout the rest of the country, with January filings up 57 % from a year ago,

In the date just released, Michigan finished 10th nationally in its foreclosure rate, the lowest ranking for the state in months.

To read the article click here.

Property Assessments Are Decreasing Locally

The Ann Arbor News this week reported all but two municipalities in Washtenaw and Livingston counties will see property assessments decrease this year. The declining assessments could mean lower taxes for some, and higher for others.

You can read this informative article here.

Housing Market Stimulants

There is a lot of controversy right now regarding whether the Federal Government is on the right path in creating stimulus packages to assist in-over-their-heads homeowners.

The Motley Fool web site recently published an interesting article in support of the assistance, and you can read it here.

"Project Lifeline" To Be Announced Today for Overdue Homeowners

USA Today reports this morning that six of the major home lenders have signed on to join the Federal Government in a program called "Project Lifeline". Borrowers with all types of mortgages, not just those with high-cost subprime loans, could now be eligible for help.

The plan will allow seriously overdue homeowners to suspend foreclosures for 30 days while lenders try to work out more affordable loan terms.

More on this plan is expected to be announced by the Treasury Department and the Department of Housing and Urban Development today.

Click here to read the article.

National Association of Realtors Praises Interest Rate Cut

NAR, the National Association of Realtors, has lauded the Federal Reserves Board's rate cut to 3.50 yesterday. The cut is expected to lower mortgage rates and ease the weight of re-setting adjustable loans.

For more information, you can view the statement in it's entirety at:

NAR Commends Federal Reserve Board on Timely Interest Rate Cut

Mortgage Forgiveness Debt Relief Act of 2007

In late December 2007 President George Bush signed the Mortgage Forgiveness Debt Relief Act of 2007 into law.

This new legislation is to help homeowners avoid foreclosure by allowing them to refinance without any tax consequences or have their lender agree to a short sale on their home. The Mortgage Forgiveness Relief Act allows for the homeowner to reduce the basis in their house (as reported by the mortgage company on a 1099C) and not reporting this forgiven debt as a capital gain or taxable income, therefore not creating any additional taxes due for the homeowner.

To get a summary of this bill go to http://www.govtrack.us/congress/bill.xpd?bill=h110-3648 .

Housing Market Influences State Population Levels

USA Today has recently reported on how the housing and mortgage crisis is impacting population levels across the States.

With the housing market cooling, the shifting that occured when people were able to enter hot markets has tapered off. In many markets, fewer people are moving, creating less change.

In other states, like Michigan, hit by a declining auto industry, population can decrease as less jobs and opportunities become available.

Population makes a significant impact on the number of House seats allocated to each State. Already based on 2007 estimates, seven seats could be reallocated among thirteen states.

Check out the article for more information.
Housing Woes Reshape USA

Howell to Possibly Get New Ice Rink

Planners for the City of Howell and their Downtown Development Authority have been moving ahead in plans to build a new ice rink next to the Livingston County Courthouse.

The plan is still in development but the proposed rink would be 125 by 70 feet. It could possibly include a fabric roof supported by beams modeled after old train stations. The project would also include a building attached to the county Administration Building, which would house skate rentals and public bathrooms.

The rink will cost $750,000 to $1 million to build. Funding for the rink would come from the city, the DDA, state and federal grants as well as donations from private citizens.

The Howell City Council and DDA are seeking public comments on the plans, which can be e-mailed to marnold@downtownhowell.org or sent in writing to 207 N. Michigan Ave., Suite 100, Howell, MI 48843.

State Moves to Help Foreclosers

Amidst the Federal Government's plans to help those heading towards foreclosure, Michigan legislators are also moving towards creating a package of bills to help homeowners as well.

Two new refinancing programs are being developed through the Michigan State Housing Development Authority’s Save the Dream campaign.

The Adjustable Rate Mortgage Refinance Plan will assist borrowers who have an ARM mortgage refinance at a lower-interest, fixed-rate loan.

The Rescue Refinance Program will help borrowers who are late on their payments and at risk of losing their homes.

The programs are being funded through taxable bonds and homeowners will eventually be responsible for paying off the full value of their mortgages.

The qualifications for the programs are a household income of less than $72,250 and the purchase price of the home cannot exceed $216,750.

For more information contact the Michigan State Housing Development Authority Save the Dream office at 1-866-946-7432.

Mortgage Bailout Agreement Reached

As we posted yesterday, a deal has indeed been made to freeze rates on some adjustable mortgages.

However, the freeze has some limitations.

Of the perhaps 2 million sub prime adjustable rate mortgages (ARMs) that are expected to reset through the end of 2009, perhaps only as many as 240,000 of these qualify.

It excludes anyone more than 30 days late at the time the mortgage would reset or anyone who has been more than 60 days late at any time within the previous 12 months.

It also only covers borrowers with ARMs resetting beginning in 2008 and leaves out any borrowers judged capable of continuing to make mortgage payments at the higher reset rates.

Borrowers who can't afford the loan even at low introductory rates also will be ineligible.

The aid will be available only to those who ask for it. A hot line has been set up for those in need of the assistance: 1-888-995-HOPE

Bush said Thursday, “We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could never afford. But there are some responsible homeowners who could avoid foreclosure with some assistance”.

Plan in Place to Freeze Subprime Loans

It was announced yesterday that the Bush administration has worked out an agreement with the banking industry to freeze industry rates for certain subprime mortgages for the next five years.

Details have not been released, but it is believed the plan would apply to borrowers with loans made from 2005 to July 30, 2007, with rates expected to rise between Jan. 1, 2008 and July 31, 2010. The plan would only apply to owner-occupied homes, leaving out real estate speculators who have over extended.

It is estimated that as many as 2 million subprime mortgages are looming to reset from low introductory rates to higher rates that could increase monthly payments by as much as 30 percent.

Through October 2007 there were over 1.8 million foreclosure filings across the U.S., compared to 1.3 million in all of 2006.

For more information:

Bush set to unveil plan to battle mortgage crisis

Bush and mortgage industry work out plan to help subprime loan-holders

Bush's mortgage plan - MSN Video

Michigan Foreclosure Rates

Source: www.detnews.com

Number of Realtors Decreasing in Livingston County

The Livingston Community News reported this week that the number of agents working in Livingston County is down 10% from one year ago. With home sales in the county down 14 percent from the year before, the decrease comes as no surprise. The average sale price is also down more than $22,000 from a year ago.

The number of agents last year was 800, and this year the number is 725.

Buckley Jolley In The News

In case you missed the Sunday, November 4, 2007 edition of the Detroit Free Press, here is an excerpt that featured Karen Jolley and the Buckley Jolley Real Estate Team. The article focused on the community of Brighton Township.

WHERE WE LIVE LIVINGSTON COUNTY: BRIGHTON TOWNSHIP
BRENDEL HIGHTOWER Free Press staff writer

APPEAL:
Brighton Township, a rural community in southeast Livingston County with a number of farms and many grand houses on large lots, has experienced steady growth in the past several years.
Its population tripled in the past 30 years, giving it the second-highest population in Livingston County, behind Hamburg Township.

More than 650 residential building permits have been issued since 2000, according to Housing Consultants in Clarkston. Most of the development has been in subdivisions scattered throughout the township and around its many lakes.

The township has gentle rolling hills, woodlands and more than 20 lakes used for recreation. The majority of the township is served by wells and septic tanks.

Brighton Township has a variety of homes priced as low as $100,000 to those with nearly 6,000 square feet and four-car garages on 1- to 2-acre lots costing more than $1 million, says Karen Jolley from the Buckley Jolley Real Estate Team in Brighton.

The city of Brighton is at the southwest border of the township. It has restaurants, shops and a walkable, old-fashioned downtown along Main Street and Grand River.

Brighton Township is in the greater Brighton area, which, in addition to the city of Brighton, encompasses Green Oak and Genoa townships.

FACTS:
This 32-square-mile community is about an hour from downtown Detroit. I-96 and U.S.-23 run through it. Go to www.brightontwp.com.

PREVALENT ARCHITECTURE:
The majority of homes (78%) have been built since 1970. They include two-story, 1 1/2 -story and ranch styles. Condominiums are also in Brighton Township.

Last year, houses sold from less than $100,000 to more than $850,000, according to multiple listing services.

POPULATION:
17,673 in the 2000 U.S. census; about 97% white, 1% Asian, 1% Hispanic. The population increased 19% between 1990 and 2000.

EDUCATION:
Math and reading MEAP scores for the Brighton Area Schools district run about 16% above state averages. Other districts are Hartland Consolidated Schools (15% above), Howell Public Schools (10% above) and Huron Valley Schools (10% above).

TAXES:
$21.20 per $1,000 of a property's taxable value in the Brighton district, $23.51 in Hartland, $21.70 in Howell and $25.98 in Huron Valley. A $285,702 (average price) house with a taxable value of $142,851 would have annual property taxes of $3,028 in Brighton, $3,358 in Hartland, $3,099 in Howell and $3,711 in Huron Valley.

PUBLIC TRANSPORTATION:
L.E.T.S. (Livingston Essential Transportation System), 517-546-6600.

PUBLIC SAFETY:
Livingston County Sheriff's Department reported 63 burglaries, 34 vehicle thefts, 13 cases of criminal sexual conduct, two armed robberies and no homicides in 2006.

SHOPPING, DINING AND ENTERTAINMENT:
Shopping and dining are available in nearby Brighton. There are no township-owned parks, but residents rely on county or state parks, schools, privately owned facilities or township lakes and streams for recreation. Some lakes offer fishing, boating and jet skiing. Island Lake State Recreation Area, Brighton State Recreation Area and Kensington Metropark have beaches, trails and campgrounds.

MAJOR EMPLOYERS:
GM Proving Grounds, Delphi Automotive, Kroger.

WHY I LIVE HERE:
Donna Alberta, 59, has lived in Brighton Township for 20 years. She says the location, recreation opportunities and country feel are the main reasons she lives in the township.
"There's great mobility, which makes it easy for a dual-income family where people are commuting in separate directions," Alberta says. She also says she enjoys the shops in downtown Brighton. She calls herself a people person and likes the restaurants, too.
"I love the sense of being out in the country, but yet not so far out," she says.

Foreclosure Filings in the Third Quarter of 2007

USA Today is reporting the top 100 largest metropolitan area for foreclosure filings in the third quarter of 2007 (July-September).

Click here to view the results:
Table: Foreclosure filings in Q3

For Michigan, the Detroit/Livonia/Dearborn, MI metropolitan area ranks second in the country and Warren/Farmington Hills/Troy, MI is 28th.

The study was released by RealtyTrac which calculated the foreclosure rates by looking at the number of households in an area with the number of foreclosure filings.