4.5% interest Rates?

While the federal government has little control over mortgage rates, a proposal floated yesterday might help. Financial industry lobbyists want the U.S. to buy mortgage-backed securities from Fannie Mae and Freddie Mac, projecting that it could lower the 30-year mortgage rate to at least 4.5 percent and jumpstart home sales.

(Atlanta) Lighting of the Macy's Great Tree

Lighting of the Macy's Great Tree
7-8 p.m., Nov. 27 (Thanksgiving night)Lenox Square MallAtlanta, GA 30326Kick off the holiday season with this ceremonial tree lighting at Lenox Square. Pre-show festivities begin at 6:30 PM. Make a memory that will last forever, and enjoy the spirit of Christmas.

Short Sales

When families lose their homes to foreclosure, communities, the housing market and the economy all suffer. Short sales are one way that some troubled homeowners can avoid foreclosure, a topic discussed by Realtors at the Short Sales Solutions session, part of the National Association of Realtors® (NAR) 2008 Conference & Expo in Orlando.“Homeowners who are struggling to make their mortgage payments must have more options available to them to avoid foreclosure,” said NAR President Richard Gaylord. “Short sales can benefit not only the homeowner in question, but also buyers, lenders and the surrounding community. With their established lender relationships and insights into complicated real estate transactions, Realtors can add real value for both sellers and buyers interested in short sales.”A short sale is a transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. The lender often receives a higher amount of the remaining loan balance than it would from the sale of the property after a foreclosure. This helps support home values in the surrounding community. Short sales also help homeowners maintain some level of credit.According to Freddie Mac, 50 percent of homeowners entering the foreclosure process did not have any contact with the lender first. One of the most valuable services Realtors can provide to clients who may be facing a foreclosure is guiding them through the lender’s short sale process and facilitating communication, according to session panelists Michael and Stacey Spikes of America’s Home Rescue.“The process for short selling an FHA loan is different than the process for shorting a Veterans Administration or conventional loan,” said Stacey Spikes. “Knowing the type of loan the seller has, and understanding the proper steps for short selling that loan and the order of those steps, is critical.”Homeowners who are having difficulty making their mortgage payments and who may be considering a short sale must generally meet three qualifying criteria: they must be behind on their payments, be able to prove a legitimate hardship, and have little or no equity in their home.While a typical real estate transaction involves two real estate professionals, a seller, a buyer, and the buyer’s lender, a short sale can include all of these parties in addition to the seller’s loan servicer, housing counselor, junior lien holders, mortgage investors and mortgage insurers. In addition to the number of parties involved, Realtors say that other challenges can make short sales difficult. These include burdensome paperwork, appraisals that do not consider the sellers’ duress or the number of foreclosures in a community, over-burdened loss mitigation departments, and complications created by second mortgages.NAR has created a working group to examine the problems and difficulties surrounding short sales and to educate its members on how to best work with their clients through this process. NAR is also reaching out to its partners in the housing and mortgage industry to encourage adoption of principles and practices to streamline the short sale process.“Short sales give many families in financial difficulties the possibility of salvaging their credit and avoiding the embarrassment of a foreclosure,” said Gaylord. “Realtors across the country stand ready to help.”

Our Market

Free fall describes market behavior last week, as we watched one of the biggest declines in market history take place. By the numbers, for the week ended Friday, October 10, 2008, the Dow Jones Industrial Average closed at 8451, down 1874 points, or 18.2%. The Standard & Poor's 500 closed at 899, down 200 points, or 18.2%, and the NASDAQ Composite closed at 1649, down 298 points, or 15.3%.As we have noted before, a substantial part of the problem in the US is debt. Congress, in its wisdom, provides deductibility of interest paid, and taxes interest earned. Two simple changes, non-deductibility of interest paid, and no taxes on interest, dividends, and cap gains, would make a big difference. The challenge is that would put some control back in the hands of voters, and loosen the bonds that tie the voters to those elected officials and their friends gorging at the government trough.Retailers reported soft sales, and 71% of retailers missed their earnings targets. IBM posted a 20% gain in quarterly earnings, and reaffirmed its earnings forecast. GM is trading at about $4.65. The last time that happened, the average car was $3000, gas was 20 cents a gallon, and your average home cost $16,000.Most of us have been attempting to sort the world out, and figure out what is going on. We have a strange election year, housing and construction is quiet, and banks appear to be out of money.In terms of lack of funds, this in my opinion is simply years of too many households, companies, and governments financing their futures with debt. The government has no place nationalizing financial institutions, yet it appears from the response of most Americans that we prefer security to freedom.On the housing front, real estate is moving through a traditional cycle. The cycle is made more difficult due to the lack of liquidity. This cycle will turn, and the survivors will be stronger for it.

Johns Creek/Alpharetta Roads

October 16, 2008JOHNS CREEK - Several road improvement projects in the city are about to get underway in the next few weeks and at the start of the new year.Intersection improvements will begin soon at Old Alabama and Haynes Bridge roads, according to Ken Hildebrandt, public works director for the city.He also said at the Oct. 6 City Council work session that striping improvements will be made on Abbotts Bridge at Boles Road and Medlock Bridge at Parsons Road.The traffic signal installation on McGinnis Ferry Road at Seven Oaks Parkway will be up and functional in November, he said.Six sidewalk construction projects along Old Alabama Road (three projects total), Taylor Road and Findley Road will save the city $48,000, since the project bids came in under budget.Hildebrandt said the $48,000 will be combined with money that City Council already approved for sidewalk construction projects; the next phase will begin in the spring.Drivers may feel safer knowing guardrails will be repaired in 12 locations around the city. However, the guardrail replacement projects does not include new guardrails, only existing ones around Johns Creek.Hildebrandt said the Buice Road full reformation project will begin soon and construction on the Johns Creek Greenway will begin in the spring.

10 Undeniable Truths about Real Estate

1. People have to have a place to live. -- It's basic but it speaks volumes
about the real estate profession. Today there are 4.78 million people in the
metro Atlanta area; it's predicted there will be over 8 million by 2025.
That's a lot of people coming in who will need a place to live.

2. Well-selected residential real estate will always go up in value. --
According to the most recent report (2nd quarter, 2008) from the Office of
Federal Housing Enterprise Oversight (www.OFHEO.gov
), home prices/values in Georgia continue to rise. There has not been a
12-month period in which home values have declined in Georgia. Click here
for that report.

3. All of us face challenges in our lives at one time or another. -- A
challenging market makes you appreciate the good times. It's as simple as
that.

4. Interest rates go up and interest rates go down, but you can always
refinance when the money is cheap. -- We are in a temporary situation in
which it's hard to find money for non-owner occupied properties and in which
the public's perception is that interest rates are high. But they will still
buy.

5. The greatest expense you will have in your lifetime, without a doubt, is
taxes. -- The level of taxation we experience in this country is remarkable.
Real estate is an investment that allows you to reach financial freedom and
reduce your tax burden.

6. The tax benefits of real estate are, indeed, too good to be true. But
they are true. -- We need to constantly tout to our customers the exclusion
from taxation of gain on a primary residence as the number 1 reason to own a
home.

7. Inflation is our friend. -- Sounds crazy, but controlled inflation can be
helpful in growing our economy.

8. You can retire comfortably on as few as 8 - 10 rental houses. -- Eight to
ten rental properties, paid off, can be a substantial retirement income.

9. Investing in real estate is simple but it's not easy. -- Seek the advice
of those who have 'been there, done that' but don't be afraid to jump right
in.

10. In the words of John McCain [and this is coming from John Adams,
lifelong Democrat!], 'Our economy is fundamentally sound.' -- We are in a
financial crisis, not an ecomonic crisis. Some of the media is comparing our
current ecomony to the Depression; however, the unemployment rate during the
Depression was over 25%, whereas our current national unemployment rate is
around 6%. Also, compare our GDP to that of the Depression and they are
nowhere near the same. We will overcome the current financial crisis and
move on with a healthy economy.

North Georgia Winery's

The North Georgia Mountains are filled with vineyards and quiet bed and breakfast inns .
http://www.persimmoncreekwine.com/ Persimmon Creek Winery is situated on over 100 acres and located near Lake Bruton.
http://www.montaluce.com/ Located minutes from Dahlonega, Montaluce has not yet produced a vintage. However, you will not be disappointed with the wines served and the activities available.
http://www.wolfmountainvineyards.com/index.htm Also located close to Dahlonega, Wolf Mountain Vineyards produces award winning wines.
After your day at the vineyards, relax at one of the following bed and breakfast inns:
http://www.smithhouse.com/
http://www.mountainlaurelcreek.com/
http://www.barninn.com/