The U.S. Mortgage Bankers Association announced today that they will ask Congress to transform Fannie Mae and Freddie Mac into several smaller, privately held companies. These companies would issue mortgage securities with a government guarantee. Successor entities would give Fannie Mae and Freddie Mac the authority to create securities backed by certain types of mortgage. This break into smaller companies would certainly make people feel more protected, and there would really be no risk. It is so important for the government to ensure stability in funds for mortgages, and it is time something is done. I will be curious to hear what Fannie Mae and Freddie Mac have to say about this proposal, I have not heard of them releasing a comment yet. What do you think? Could this be the turnaround we all need to see? It is good to hear that some effort is being made, since it seems that this issue has been sitting around for a while. It is also a good to hear news about them, especially today when shares for both companies are showing consistent decline.

The skinniest house in New York City is now on the market, and it has made national news. This home is 9 1/2 feet wide and 42 feet long; in other words, Shaquille O’neal could lay horizontally in this place with little room left above his head! But there is nothing skinny about the asking price, nope; this house has a fat asking price of $2.7 million. The buyer of this home will most likely buy it as a novelty, it is sort of iconic in that it is one of the most photographed homes in New York, and that is saying a lot. Not to mention the one of a kind address they will have, 75 1/2 Bedford Street. It is great to hear of real estate that is more than just price per square footage; so awesome that such a small piece of property can have such a large impact on people.

Real estate has it’s own program within the economic stimulus package that did not get quite the hype that Cash for Clunkers did, but honestly, it could be considered a little better. This information may have escaped you, the deal is that if you are a first-time homebuyer you can claim an $8,000 tax credit (or 10% of the purchase price). This credit that you receive does not even have to be repaid! With cash for clunkers in the spotlight, this part of the package was not talked about as much, and it is a shame because many people are just finding out about it, with only 3 months left. The worst part, people who are thinking of taking advantage of the deal now have to start searching and act immediately because we all know it takes around 90 days to close on a house after the contract is signed. Most of the properties that have been taken advantage of with this plan are actually short sales. What a great deal. But this is causing a feeding frenzy because as soon as a repossession listing hits the market, there are several bids within a couple of days. The odds of getting a contract are slim, and so are the pickings depending on your standards. There has been a lot of recent activity in real estate and you can’t help but wonder if most of the credit goes to this stimulus package. We will soon find out come November 20^th when it ends. Let’s make sure activity stays up, make some deals and work on some short sales. Real estate investing is the place to be right now.

JT taking the ferry to NYC, always on the phone and negotiating. JT, put the phone down already and enjoy the view!

Yes? Then you should look into buying a house. A small town in Minnesota is making national news this week with an announcement that has many people asking “HOW MUCH?!!?!” The city of St. Paul has purchased (with the help of federal funds) eleven foreclosed upon homes in the well-known neighborhood of Dayton’s Bluff. They plan on selling these homes, and they will go for as high as $50K, and as low as…wait for it…ONE DOLLAR. The city decided to get into the business of residential real estate with hopes of fighting foreclosure and revitalizing these old homes. Difficult times call for creative solutions, and this city has certainly done that. With over 2,000 vacant homes, St. Paul needed to do something drastic. This is a large investment on the city’s behalf, and you can’t help but to root for them. Buying one of these houses does not come without strings, let’s face it, how could it? If you decide to purchase one of these “Diamonds in the rough”, you must commit to residing in the home. The city’s focus is to have the buyers invest not only their money, but also themselves into the house and community. This is a long-term effort to turn around the neighborhood. Other requirements also include being able to “demonstrate the financial resources needed to undertake successful rehabilitation of the property and they should be able to qualify for a mortgage in the range of $140,000 – $190,000.” And, they will be “required to incorporate the development principals and historic preservation goals created through the neighborhood planning process described in the application.” I would assume it will be a long application process, but hopefully not too long so the neighborhood can get back on track! Best of luck to St. Paul!

CLICK HERE if you would like to check out pictures and more info on these eleven homes

Yesterday was the last day of the popular government funded program, Cash for Clunkers, and today the auto dealers must be asking “Now What?” The response was overwhelming up to the last minute. Now it seems almost impossible to imagine people going out to buy cars. Auto sales were down to record lows before this program began, and now it is time for the dealers to face the economy again. Now that all of the excitement is over, we have to look ahead and wonder how this program will have affected the auto industry. Were some of the sales over the past month stolen sales from the fall and winter? Or maybe the whole program will have a lasting affect and keep people in the car-buying mode. With sales increasing up to 30% in one month, no one can really complain. After all, that is MUCH better than nothing. Everyone seems to be happy right now, but all eyes will be on the auto industry to see what will happen next.

Home appraisers are coming under fire yet again, and they are each feeling the burn. There is a new code of conduct for appraisers, and they are being forced to drop their prices, which have led many to search for work outside of their usual areas. This is causing people to second-guess appraisals because it is not safe to assume that the out of town appraiser knows the surroundings. Many are claiming that inspections are being done carelessly and many are challenging the final appraisals. Appraisers are being asked to do a lot more, for a lot less, resulting in possible sloppy appraisals. No one wins in this situation, and there doesn’t seem to be a solution on the horizon.

Check out this article to learn more.

The class of 2009 is finding it more difficult than ever to land a job, as they face job-hunting in the worst economy since the depression. It was recently reported that less than a fifth of graduating college seniors have even received offers. This is an incredibly intimidating statistic that is causing this generation to be skeptical, which is a horrible way to approach a career. This is a time when people are being let go from their jobs, and available jobs are scarce. And since there are so many people without jobs, the competition is broadening, with more experienced candidates up against recent graduates. The state of the economy has led many college students to re think their direction, many deciding to comfortably continue on to graduate school. I am hoping that those who go immediately out into the job market don’t give up on their dreams and continue to pursue their passion. We need more pioneers; we need more entrepreneurs. I would encourage them to use their new education to really go out on their own, not working for someone else. There is so much opportunity, and so much that has not been done. There has been a lot of talk about how it is impossible to find jobs; someone needs to be reminding these graduates that they can create their own jobs! It usually turns out better that way anyway. Good luck class of 2009, do something great!

Click here to read (or watch) a great story on what these graduates are facing, and how most are dealing with it.

The class of 2009 is finding it more difficult than ever to land a job, as they face job-hunting in the worst economy since the depression. It was recently reported that less than a fifth of graduating college seniors have even received offers. This is an incredibly intimidating statistic that is causing this generation to be skeptical, which is a horrible way to approach a career. This is a time when people are being let go from their jobs, and available jobs are scarce. And since there are so many people without jobs, the competition is broadening, with more experienced candidates up against recent graduates. The state of the economy has led many college students to re think their direction, many deciding to comfortably continue on to graduate school. I am hoping that those who go immediately out into the job market don’t give up on their dreams and continue to pursue their passion. We need more pioneers; we need more entrepreneurs. I would encourage them to use their new education to really go out on their own, not working for someone else. There is so much opportunity, and so much that has not been done. There has been a lot of talk about how it is impossible to find jobs; someone needs to be reminding these graduates that they can create their own jobs! It usually turns out better that way anyway. Good luck class of 2009, do something great!

Click here to read (or watch) a great story on what these graduates are facing, and how most are dealing with it.

Gas prices have been rising like crazy lately, so naturally, driving seems to look less and less appealing to people across America. Oil prices jumped to a new high today which led Federal Reserve Chairman Ben Bernanke to say that the U.S. economy is nearing a recovery and that other economic data backed him up. The news of the price rise in oil came after the financial information company Markit said its composite purchasing managers index showed the European economy was stabilizing. The European recession seems to be coming to an end, which means that the euro could become even stronger, so more demand for oil. Because the weeks end showed the dollar falling to the euro, dollar-based oil was made cheaper across the world. Therefore, investments went into oil, which sets up the prices for gasoline and other fuels to rise even more. While gas prices show about a 16 cent rise from last month, there is still good news. Our prices are $1.077 cheaper than last year! With all of this talk about gas prices, new housing data has shown that people are buying. The National Association of Realtors has stated that home re-sales posted the largest monthly increase in at least 10 years, which may have had a hand in the higher energy prices. It is not clear where our oil prices are headed next, but it is almost funny to reminisce about the days when we were shocked that gas prices were about to hit two dollars.