$700 Billion Government Bailout

The National Association of REALTORS has been working closely with policy makers and elected officials to alleviate the country's financial troubles and ensure that there is a robust secondary mortgage market -- all to help keep the housing industry afloat. Lawrence Yun, Chief Economist of NAR, posted his comments on the $700 billion proposed bailout at NAR's site.

NAR employs an entire research department that conducts all kinds of analysis and comments on issues affecting the industry. To read more about other housing-related research commentaries, click here.

Learn About the Benefits of Owning a Home

The National Association of Realtors has created a site to promote the benefits of owning a home. The site provides you with statistics and links to additional research and reports. If you're thinking of buying a home, but are hesitant in light of the recent news regarding the economy, visit the site to get the facts. It's a great time to buy real estate, especially here in the Greater Rochester region!

Mike Smith Named 2008 NYSAR Realtor of the Year

The New York State Association of REALTORS® honored Michael S. Smith, ABR, CEA, EMS, e-PRO, GRI, SRES, as the 2008 REALTOR® of the Year during the association’s Fall Business Meetings in Saratoga Springs, NY.

He is the 51st recipient of the REALTOR® of the Year award, which recognizes outstanding service to the REALTOR® organization at the local, state and national levels, a strict adherence to the high principles of the National Association of REALTORS® Code of Ethics, a commitment to civic activity and business accomplishments.

A REALTOR® for 30 years, Smith is an associate broker and assistant office manager with Nothnagle REALTORS® in Lakeville. He also serves as the brokerage’s company trainer.

Smith is a past president of the Genesee Valley Board of REALTORS® and sat on the GVBR Board of Directors for more than 15 consecutive years. As a New York State Certified Real Estate Instructor, he has written and taught numerous local board courses. He currently serves as the chair of GVBR’s Education Committee, and serves on the finance, MLS and orientation committees.

At the state level, Smith serves as the vice chair of both the Legislative Steering Committee and the Legislative Policy Forum. He has served on or chaired numerous other committees including organizational planning, member services, communications and public relations, and strategic planning. In addition, Smith has been an RPAC New York Life Member since 2002.

Smith is a dedicated member of the National Association of REALTORS®, regularly participating in NAR’s Calls for Action. In addition, he teaches the NAR Quadrennial Code of Ethics training for members of three local REALTOR® boards in New York State.

Active in his community, Smith is an advisor to Please Don’t Destroy Geneseo, a local citizens group dedicated to fostering smart growth initiatives. He is also a member of the Genesee Valley Conservancy, an open space preservation group.

In acknowledgement of his outstanding achievements, Smith will be honored at the REALTOR® Recognition Program during the 2008 REALTORS® Conference and Expo in Orlando, FL in early November.

The New York State Association of REALTORS® is a not-for-profit trade organization representing more than 64,000 of New York state’s real estate professionals.

Nothnagle Realtors Raises Money for VOA

Proceeds raised from Nothnagle's annual golf tournament were donated to the Volunteers of America Children's Center, which supports programs for children age 6 weeks - 12 years. All proceeds raised were donated along with a matching corporate contribution. Click here to read more about the event and the many benefits the Children's Center brings to our community.

Obtaining a Mortgage

With the tremendous losses experienced by the mortgage industry, it is true that some of the lending guidelines have been tightening up. Lenders have slightly increased their credit score requirements and many are requiring a 10-15% downpayment on a conventional loan here in Rochester. However, many programs are still out there -- especially if you're a first-time home buyer -- that may be less stringent.

One of the best things you can do to prepare if you're in the market to buy (aside from hiring a Nothnagle agent!) is to get pre-approved for a mortgage. Pre-approval has more significance than a pre-qualification. Nearly anyone can get a pre-qualification letter; a pre-approval letter is only issued after the lender has run a credit report and verified your financial circumstances. A pre-approval letter may also provide you with some conditions that must be met in order to obtain a mortgage. One common example would be if you own a home now, your lender may condition a mortgage approval on you selling your home first before they will lend you money for your new home.

Rochester continues to fair well, especially in comparison to other parts of the country. I have read stories of some borrowers being required to put 20%+ down in parts of the country hardes hit by the mortgage/foreclosure crisis. The issue being that in some of these areas that experienced tremendous appreciation and inflated price, if a buyer had a low downpayment coupled with plummeting home values, it makes it much easier to "walk away" from the property and go into foreclosure. The buyer doesn't have much to lose. By requiring a substantial downpayment, it makes it more difficult to simply walk away because a borrower may not want to lose a substantial cash investment.

Short Sales

The basic definition of a "Short Sale" is when the amount owned on a mortgage is higher than the value of the home. Therefore, there isn't enough money to pay the bank back -- i.e., you're "short" funds -- when you sell the property.

We continue to read about the foreclosure crisis in the country. However, many foreclosures have been averted when a "Short Sale" is successful. It benefits everyone involved when the only option is to go this route.

Ideally, this is an option for homeowners who a) may be having difficulty making payments; or b) have just started falling behind, because it can some times be a timely process -- especially if there is more than one bank involved. It is an option sometimes for homeowners who have had foreclosures proceedings initiated; however time is of the essence at this point.

The key to a successful transaction is that the lender must agree to accept less money than they are owed. Why would a bank do this??? Because they don't want to be in the business of owning your home. Banks lose money having to foreclose, possess and re-sell these properties. They can sometimes cut their losses before having to invest the additional time and expense required by the foreclosure process.

If you find yourself in financial trouble and you owe more than your home is worth, contact a Nothnagle agent to find out if a "short sale" is an option for you. Also, The Housing Council of Monroe County is a FREE service available to homeowners facing potential foreclosure. Call The Housing Council at 546-3700 or visit their website for more information.

Find Your Next Home on Nothnagle.TV

This past weekend's Page 3 column in the Democrat and Chronicle was dedicated to one of our exclusive services offered only through Nothnagle Realtors -- Nothnagle.TV.

Nothnagle.TV added some updates from the original version and we now have made it easier than ever to use to find your next home.

Click here to read other past editions of our Page 3 column.