Getting Paid To Buy A House Ends Today....Or Does It?

The deadline for earning federal tax credits associated with the American Recovery and Reinvestment Act is today. To qualify for the credits of up to $8,000, most home buyers must "enter in to a binding contract" by the end of the day today and close on their purchase by June 30.

There is an exception however. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community have another year to qualify.

Not a soldier, foreign diplomat or government spy? Don't fret. There is another little known method you can take advantage of to have the government give you money for buying a house.

Home buyers who purchase a Fannie Mae foreclosure may be eligible for a credit of up to 3.5% of the purchase price to pay for closing costs and/or new appliances. That's $8,050 for a purchase of $230,000; more than the expiring tax credits!

There are many Fannie Mae-owned houses currently for sale in Central Oregon that are in great shape and priced to sell quickly. Combined with historically low interest rates in the 5% range and thousands of dollars in incentives being offered to purchase them, now really may be the best time to buy a new home for you and your family.

Please call me for more details about these and other money saving opportunities available to you for purchasing a home.

Bend Home Sales Up, Prices Stable in March

Sales of stick built houses on less than one acre in Bend increased 46.8% from a year earlier in March. Prices declined just 1.5% year-over-year.

138 houses were reported sold last month compared to 94 in March 2009.

The median sale price per square foot was $109.83, versus $111.53 a year earlier.

With 739 houses currently listed for sale, the inventory of homes for sale is currently 5.36 months. 6 months of inventory is generally considered to indicate a balanced market.

Short Selling May Help You Get A Job

One of the primary reasons people choose to short sell a property rather than simply letting it go to foreclosure is to minimize the hit to their credit score.

Most of us try to maintain or improve our credit score in order to qualify for or get better rates on home and car loans, credit cards and insurance premiums. But did you know it could also impact your chances of getting a new job?

Following is an article from online.wsj.com

Bad Credit Derails Job Seekers

After three rounds of interviews for a sales position with Prudential Insurance Co. of America, Patricia Rosa received a letter in February saying her job application was denied based on information from a background check she authorized the company to conduct. The only blemish on her record, she says: Poor credit that built up since she lost her job two years ago.

Unemployed and in debt, Ms. Rosa is among a growing number of job hunters who find their financial past interfering with their professional futures.

Concerned about rising rates of employee theft and fiduciary issues, more employers are conducting credit background checks on applicants for some positions. Companies say the financial information can offer insight into a candidate's level of responsibility. But people whose previously solid credit has been damaged by the economic downturn say they are victims of circumstances beyond their control.

Ms. Rosa believes her credit woes lost her the opportunity at Prudential. A company spokeswoman said Prudential doesn't comment on specific job applicants but that each candidate authorizes the company to conduct a background check, which may or may not include a credit check.

A 49-year-old single mother of three, Ms. Rosa fell behind on her mortgage and other bills a handful of months after losing her job as a New York City office manager for a mortgage company in early 2008. "My house is in foreclosure," the Nyack, N.Y., resident says. Ms. Rosa is now searching for positions outside financial services, believing other industries will be more tolerant of her debt.

The federal Fair Credit Reporting Act gives employers the right to conduct background checks on current and potential employees through third-party companies, with the individual's approval. Some 47% of employers say they check the credit history of applicants for certain positions, according to a survey by the Society for Human Resource Management of more than 430 organizations in late 2009. That's up from 42% of employers in 2006. Just 25% of employers in 1998 said they regularly or sometimes checked applicants' credit histories.

Companies typically look back over a period of years for patterns in applicants' behavior, says Mike Aitken, the professional group's director of government affairs. "It's a longer-term snapshot to see if that's indicative of fiscal responsibility," he says.

The vast majority of employers who conduct credit background checks do so for jobs with fiduciary or financial responsibility, such as accounting, budgeting or those involving cash or sensitive credit-card information. Nearly half the respondents also consider the credit of candidates for senior executive positions.

Lawsuits or other judgments outstanding, or multiple accounts in debt collection, were the types of credit information most likely to keep an organization from extending a job offer, according to the survey.

Legend Financial Advisors Inc., which has about 20 full-time employees, conducts a background check that includes credit for all new job finalists, says Diane Pearson, a financial adviser at the firm.

The Pittsburgh wealth-management firm had its first encounter with a candidate's poor credit last year, she says. A college student applying for a summer internship had a history of unpaid bills and bounced checks. The firm decided to bypass the candidate. If he had been a candidate for a full-time position, "we may have spent more time and energy" examining the circumstances, Ms. Pearson says.

Knowing what is on your credit report and offering an explanation for debt caused by a specific event could keep negative information from derailing your employment chances.

First, be sure you understand what employers can see on a credit check and make sure you understand your report so you can explain any problem areas. Employers receive a credit report, not credit score, from consumer reporting companies. A report includes debt, bill-paying history, number and types of accounts, how long you've had them, and whether you've been sued or have filed for bankruptcy, among other factors. Information can go back seven years—or 10 for bankruptcies. Credit scores, on the other hand, are used by lenders to help determine if you are financially worthy of a loan.

Certain factors that could hurt your credit score, such as a recently reduced credit-card limit, would be unlikely to hurt your job prospects. Employers focus on issues like collections and defaults, says John Ulzheimer, president of consumer education for Credit.com Inc.

You might be tempted not to sign a waiver allowing for a potential employer to conduct a background and credit check. But refusing is likely a deal breaker, career counselors say. Employers will assume you are hiding a serious problem, and in today's job market, they won't have trouble finding a more forthcoming candidate. Most employers don't seek permission for a background check until they've narrowed down the pool of candidates to a group of finalists, or have made an offer contingent on such a check, the SHRM data show.

"You really need to explain your circumstances," says Tammy Kabell, of Career Resume Consulting, based outside Kansas City, Mo.

Sandy Gross, founder of Pinetum Partners, an executive search firm in Greenwich, Conn., focused on financial services, also suggests explaining the circumstances surrounding the negative information that will turn up and the steps you took to address the situation before employers run a check. "No one likes a surprise," Ms. Gross says.

Critics of the credit checks say they create a vicious cycle that prevents those who most need jobs from getting them. Lawmakers are pushing for change. U.S. Rep. Steve Cohen (D., Tenn.) has proposed a bill to prohibit the use of credit checks during the hiring or firing process, with certain exceptions. And some states have passed or proposed laws to restrict employers' use of credit checks.

Consumers can request one free credit report each year from each of the three nationwide credit-reporting companies—Equifax, Experian and TransUnion—through AnnualCreditReport.com. You are also entitled to a free report in certain situations, including if you are unemployed and plan to look for a job within 60 days, or if a company says it didn't hire you because of your credit history.

If you find mistakes, alert the credit-reporting bureaus and creditors in writing. The process takes time, so review your history at least a month or two before you expect employers, or lenders, to request it, says Experian vice president, Michele Bodda.

Write to Kristen McNamara at kristen.mcnamara@dowjones.com

Home Sales See Big Jump In 2009

The number of houses sold in the Bend/Tumalo/Alfalfa area increased nearly 40% in 2009 from a year earlier.

A total of 1563 houses were sold in last year versus 1123 in 2008, when prices really started to decline and the financial market was on the brink of imploding.

The increase in sales is attributable to drastically lower home prices, historically low interest rates and federal tax credits for home buyers.

The median price for all homes sold in Bend last year was $212,500, down more than 26% from 2008, when the median sale price for the year was $289,000. The median price per square foot fell by roughly the same percentage, from $153.2/sf in 2008 to $112/sf in 2009.

Continued low interest rates also played a role, with 30 year fixed rates staying below 5.5% and even dipping below 5% several times thoughout the year.

In addition, a federal tax credit of up to $8,000 for home buyers is leading some to buy now, before the incentive ends (Unless extended, the tax credits are set to expire at the end of April).

If you've been considering buying a home and haven't seriously looked in a while, I know you'll be surprised to see just how affordable homes are now compared to just a few short years ago. Give me a call today to get started.

Graffiti Removal Hotline

Until just a few minutes ago, I didn't even know Deschutes County had a Graffiti Removal Hotline. It's run through the county Juvenile Community Justice Department and the work is apparently done by youthful offenders. This sounds like an excellent program. Please copy this number and pass it along: 541.385.1720

Home Prices Up In 4th Quarter

In yet another sign of stability in Bend's housing market, the median price of homes sold in the 4th quarter rose by 6.1% from the 3rd quarter. Probably even more meaningful is that the median sale price per square foot for homes sold over the last 3 months of the year was 2.9% higher than those sold in the July through September period. (These numbers do not include manufactured homes, houses on more than 1 acre of land or condos and townhouses).

High End Homes Beginning To Move
And as I've noted here before, sales of more expensive properties have seen a resurgence lately as well.

There were more sales from $750,000 to $1.5 million in the 4th quarter alone (23) than there were in the previous 3 quarters combined (18)!


Inventory Continues To Shrink
Believe it or not, the overall market in Bend could now be classified as a seller's market! With 673 houses currently listed for sale and 163 closed sales last month, there is only slightly more than 4 months worth of housing inventory available. (6 months is generally considered a "balanced market.") Of course, different price segments of the market yield different results but the lower inventory is good news for Bend's real estate market overall.

Bend December Home Sales More Than Double From Year Earlier

More than twice as many homes in Bend were reported sold last month than in the same month a year earlier.

158 homes on less than one acre in Bend were reported sold to the MLS of Central Oregon last month, an increase of 122.5% from December 2008, when 71 sales were reported in the midst of the worst financial chaos since the Great Depression.

December marked the 3rd straight month that sales activity reached levels not seen since the height of the market in 2005, and the 5th consecutive month sales activity exceeded numbers reported in 2008 and 2007.