Secondly, I found it notable that President Obama made it abundantly clear that America’s housing market is important to the fabric of America.  Some have even proposed  to me that it is the first time that the issue of housing has taken such a prominent position in a President’s State of the Union address.

As leading advocates for homeownership, Realtors® know that restoring the health of the housing market is the only way to achieve a broader economic recovery.  For one, a typical home sale pumps a total of $60,000 into the economy over time because when a
house sells, jobs are created. The importance of the housing market in relation to our state’s and nation’s well-being couldn’t be more evident than it is right now.

In that most recent report, the ARA announced that the average sales price of homes in Arkansas rose for the fourth straight month in December. Average prices of homes in the 43 county area monitored by the Association increased more than 2 percent from
$144,842 in December 2010 to $147,842 in 2011.

The number of units sold in December decreased 6 percent from 1,903 in December 2010 to 1,785 for the same month in 2011.

For the year, the number of homes sold as compared to 2010 decreased less than 1 percent while average prices decreased slightly more than 1 percent.

These are encouraging numbers and early signs of a possible recovery in the housing market.  In our opinion what is important to sustain this recovery are continuing low mortgage interest rates, job creation and a renaissance in America’s belief that the American Dream of home ownership is still possible.

“We would describe 2011 as a rebuilding year, as well as one full of tremendous achievements,” said Dana Powell, 2012 President of the Arkansas
REALTORS®Association. “The market is showing signs of improvement, and more than ever, people aspire to become homeowners. Throughout the past year
REALTORS® have worked hard to make sure everyone who is willing and able to assume the responsibilities of owning a home should have the opportunity to
pursue that dream.”

“Realtors® stand ready to help Congress and the administration implement President Obama’s proposal to significantly reduce monthly mortgage payments by streamlining the refinancing process,”  said 2012 National Association of REALTORS® President Moe Veissi in a recent news release.  “But beyond that, we must make housing a national public policy priority. REALTORS® believe that more must be done to stem the rising inventory of foreclosed homes and address the lack of available and affordable mortgage financing, which is inhibiting a meaningful housing market recovery.

Viessi continued by saying, “Our families, communities, the housing market and economy all suffer when people lose their home to foreclosure. Realtors® are calling upon the Obama administration, Congress and lenders to help keep more people in their homes by taking more aggressive steps to modify loans and help homeowners significantly reduce their monthly mortgage payments.”

To view the entire State of the Union address, readers can visit http://www.whitehouse.gov/state-of-the-union-2012.

For more information, readers may visit www.ArkansasRealtors.com

This post syndicated from Arkansas Realtors Association Blog: Arkansas REALTORS® Association

“This support is critical for families needing assistance to pay their home energy costs,” said George Sheldon, HHS acting assistant secretary for children and families. “We are releasing these funds today to help ease the burden for those vulnerable families and aid them in getting through the remaining winter months and the summer months ahead.”

LIHEAP assists low-income households, including families with children and seniors, with their home energy needs such as heating in the winter, cooling in the summer, and insulating their homes to make them more energy-efficient and to reduce their energy costs. The $863 million in regular block grant funds released today is in addition to the $2.6 billion released since October 2011. Including funds released today, grantees will receive a total of $3.4 billion in LIHEAP block funds for Fiscal Year 2012.

“Many Americans make difficult decisions whether it’s paying for rent, food and heating costs, which can add a real strain on families,” said Jeannie Chaffin, director for the Office of Community Services. “We are releasing these funds today to help as many families as possible get through this winter season safe and warm.”

Individuals interested in applying for energy assistance should contact their local/state LIHEAP agency. In Arkansas, that is Ms. Cathy Rowe, Manager, Home Energy Assistance Program, Office of Community Services, Department of Human Services.  She can  be reached at 1-800-482-8988 or by email at cathy.rowe@arkansas.gov.  For more information, readers can also visit  http://www.acf.hhs.gov/programs/ocs/liheap or http://www.acf.hhs.gov/programs/ocs/liheap/brochure/brochure.html.

According to their Web site, in Arkansas the Home Energy Assistance Program provides financial assistance to approximately 60,000 households each year to help them meet the costs of home energy i.e. gas, electricity, propane, etc.  It also offers weatherization services and case management activities which are designed to encourage and enable households to reduce their energy costs and thereby, their need for financial assistance.
Eligibilityis based on 150 percent of current the Office of Management and Budget  (OMB) income poverty guidelines for all households for Regular Assistance. Crisis Assistance is based on 150 percent of current OMB income poverty guidelines for all households.

Assistance is available at your local Community Action Agency.

For more information on eligibility, guidelines and an Arkansas Community Action Agency Directory, readers can visit the Arkansas Department of Human Services web site at http://humanservices.arkansas.gov.

This post syndicated from Arkansas Realtors Association Blog: Arkansas REALTORS® Association

LITTLE ROCK (January 26, 2012) – The Arkansas REALTORS® Association, the
voice of real estate in Arkansas, announced that existing-home prices rose
for the fourth month in December.   Average prices of  homes in the 42
county area monitored by the Association increased more than 2 percent from
$144,842 in December 2010 to $147,842 in 2011.

The number of units sold in December decreased 6 percent from 1,903 in
December 2010 to 1,785 for the same month in 2011.

For the year, the number of home sold as compared to 2010 decreased less
than 1 percent while average prices decreased slightly more than 1 percent.

“We find these to be very encouraging numbers and early signs of a possible
recovery in the housing market,” said Amy Glover Bryant, Director of
Communications for the Association.  “What is important to sustain this
recovery are continuing low mortgage interest rates, job creation and a
renaissance in American’s belief that the American Dream of home ownership
is still possible for them.  More buyers coming into the market mean
additional benefits for the overall economy in Arkansas.  A typical home
sale pumps a total of $60,000 into the economy over time because when a
house sells, jobs are created.  The importance of the housing market in
relation to our state’s well-being couldn’t be more evident than it is right
now.”

“We would describe 2011 as a rebuilding year, as well as one full of
tremendous achievements,” said Dana Powell, 2012 President of the Arkansas
Realtors®Association. “The market is showing signs of improvement, and more
than ever, people aspire to become homeowners. Throughout the past year
Realtors® have worked hard to make sure everyone who is willing and able to
assume the responsibilities of owning a home should have the opportunity to
pursue that dream.”

Excel and pdf versions of the December report can be found on the Arkansas
REALTORS® Association website at
http://www.arkansasrealtors.com/news-events/housing-market-reports

For information on national numbers from the National Association of
REALTORS®, please visit
http://www.realtor.org/press_room/news_releases/2012/01/ehs_dec

For more information, contact Glover Bryant at the Association at
501.225.2020 or on her wireless at 501.786.9415.

This post syndicated from Arkansas Realtors Association Blog: Arkansas REALTORS® Association

“The best way to prevent yourself from falling victim to a scam is to be educated about the scammers’ tactics and be ready to say ‘No’ to any deal you’re unsure about,” says Arkansas Attorney General Dustin McDaniel. “We encourage consumers to ask questions, go online to check the legitimacy of the party you’re dealing with, or contact our Consumer Protection Division if they are concerned.”

Common Loan Modification Scams

According to the National Association of REALTORS® and its partner NeighborWorks America, a national, nonprofit organization created by Congress to provide financial support, technical assistance and training for community-based revitalization efforts, the following are some of the most common loan modification scams out there today.

Phony Counseling or Foreclosure Rescue Scams
The scam artist poses as a counselor and tells you he can negotiate a deal with your lender to modify your loan or save your house—if you pay him a fee first. The fee may be called a processing fee or administrative fee. He may even tell you not to contact your lender, lawyer or housing counselor—that he’ll handle all details. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender. Once you pay the fee, or a few mortgage payments, the scammer disappears with your money.

Fake “Government” Modification Programs
Some scammers may claim to be affiliated with, or approved by, the government, or they may ask you to pay high, up-front fees to “qualify” for government mortgage modification programs. The scammer’s company name and Website may sound like a real government agency, but the Website may end with .com or .net instead of .gov. You may also see terms like “federal,” “HAMP,” “MHA,” “HARP” or other words related to official U.S. government programs.

Contact your lender first. Your lender will be able to tell you if you qualify for any government programs to prevent foreclosure or modify your loans. And you do not have to pay to benefit from these programs.

Forensic Loan Audit
The scammer who may be called a forensic or mortgage loan “auditor” offers to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The scammer will usually require that you pay a fee to start the process. The scammer may say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

There is no proof that a forensic loan audit can save your home from foreclosure although it’s conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer. Even if you sue your lender and win, your lender is not required to modify your loan to make it more affordable. If you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

Bait-and-Switch
The scam artist convinces you to sign documents for a “new loan modification” that will make your existing mortgage current. This is a trick. You actually just signed documents that surrender the title or deed of your house to the scam artist in exchange for a “rescue” loan. Thoroughly read any document before you sign it.

Rent-to-Own or Leaseback Scheme
A scammer urges you to surrender the title or deed of your home as part of a deal that will let you stay in your home as a renter and then buy it back in a few years. He may tell you that surrendering the title will permit a borrower with a better credit rating to get new financing—and keep you from losing your home. However, the scammer may have no intention of ever selling the home back to you.

But the terms of these deals usually make buying back your home impossible. Worse yet, when the new borrower defaults on the loan, you’re evicted.

Short Sale Scam
Scammers, sometimes called “short sale negotiators” or “short sale processors,” may promise to expedite a short sale and usually require you to pay a fee, which is illegal in many states. Some scammers may even include surcharges or hidden fees before the transaction closes, which are also illegal in many states. The scammer may also misrepresent the value of the home to the lender.

A short sale may be a legitimate option for a homeowner in default or homeowner who is current yet the value of the home has fallen — if the lender agrees to the short sale. Homeowners should work with a REALTOR®  since the law requires that the person be properly licensed to negotiate the short sale with your lender.  Arkansas homeowners can verify licenses with the Arkansas Real Estate Commission by visiting their website at www.arec.arkansas.gov.

Bankruptcy to Avoid Foreclosure
The scammer may promise to negotiate with your lender or get refinancing on your behalf if you pay a fee up front. Instead of contacting your lender or refinancing your loan, he pockets the fee and files a bankruptcy case in your name—sometimes without your knowledge.

A bankruptcy filing often stops a home foreclosure, but only temporarily. Filing bankruptcy stops any collection and foreclosure while the bankruptcy court administers the case. But, eventually you must start paying your mortgage, or the lender will be able to foreclose.

You could lose the money you paid to the scammer and your home. Worse yet, a bankruptcy stays on your credit report for 10 years, which makes it difficult to obtain credit, buy a home, get life insurance or even get a job.

Next week, I’ll focus on 6 signs you can look for to indicate you may be dealing with a loan modification scammer.

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House to House is distributed weekly by the Arkansas Realtors® Association.

This post syndicated from Arkansas Realtors Association Blog: arkansasrealtors