White House approves Fargo-area diversion project

North Dakota Sen. Kent Conrad says the White House has approved the plan for a Red River diversion project around Fargo and Moorhead, Minn. The U.S. Army Corps of Engineers designed the flood control project, which is currently estimated to cost about $2 billion.

Conrad says the White House's Office of Management and Budget determined that the plan is "consistent with the policies and programs of the president." The plan still needs approval from Congress.

More Americans Pay Car Loans Before Mortgages

Americans are prioritizing their debt payments by opting to pay their car loans before mortgages and credit cards, according to an analysis by credit reporting bureau TransUnion.  TransUnion analyzed the payment patterns of 4 million consumers who had at least one car loan, bank card, and mortgage payment.

"With unemployment remaining high and real estate values remaining stagnant or further depreciating, consumers continued to pay their credit cards ahead of their mortgages,” says Ezra Becker, vice president of research and consulting in TransUnion’s financial services unit. “However, the importance of their auto loans appears to have trumped even the value they place on their credit cards."  TransUnion found in its analysis: Read More Here: More Americans Pay Car Loans Before Mortgages

Real Estate Ads ‘Hijacked’ Online in Scams

Scammers are increasingly taking actual online listing ads of homes for sale from real estate agents’ sites and reposting them on sites such as CraigsList as rentals, duping a growing number of renters.

Tug Pierson, a RE/MAX real estate professional in Indiana, says he learned of one of his for-sale listings being used in a rental scam, reposted online several times throughout the Internet. Another real estate agent, whose listing was also reposted as a rental, says he learned of it when an unsuspecting renter contacted him to say he was at the house with a truck of furniture ready to move in.

If you're putting your house on the market, a few things you should know

If you hope to sell your house, March is a great time to start getting it ready to show to potential buyers. You need to make sure that your home is ready to show flawlessly, so that it can stand out among all the houses on the market. In the real estate market, first impressions are tremendously important to potential buyers, many buyers and sellers are doing their homework. Now more than ever, it takes a lot to get a potential buyer to walk into your home with an agent, and you cannot afford to make a bad first impression. Buyers today are not looking to purchase houses that carry an immediate to-do list.

There are five key factors in a home that can impact a sale. Think of the letters H-O-U-S-E:
H - House vs. home:
O - Odor and cleanliness:
U - Updated and fresh:
S - Space and flow:
E - Emotion:

Click for details here!

30-Year Mortgage Rates Edge Above 4%

Mortgage rates moved up quite a bit this week, following higher bond yields and improving economic data, Freddie Mac reports in its weekly mortgage market survey.

"Mortgage rates are catching up with increases in U.S. Treasury bond yields, placing the average 30-year fixed mortgage rate above 4 percent for the first time since the end of October 2011,” says Frank Nothaft, Freddie Mac’s chief economist. “Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests, and the likelihood of a second bailout for Greece.”

The 30-year mortgage rate, the most popular choice of home buyers, took a big leap upward, after hovering below 4 percent and sitting at all-time record lows for weeks. Here’s a closer look at rates for the week ending March 22:

4 Ways To Pay Off Your Mortgage Earlier

Paying off a mortgage early is in. Refinancing to take money out of our homes is out. Living through the foreclosure crisis, more people want the security and the psychological benefit of owning their home free and clear. If you want to pay off your mortgage early, you'll find plenty of experts recommending ways to do it. All strategies work, but you'll find some methods of paying off your mortgage are safer, faster, and more painless than others. Compare these ways you can pay off your mortgage early, starting with the simplest and moving toward the most complex.

• Just Pay More!
• Refinance with shorter term mortgage
• Switch to bi-weekly payments (pays a 30 yr mtg off 6 yrs early!)
• Use money merge accounts
• Additional Resources

Click here for complete details on each option...

Tips to help you sell your house

Are you one of the millions of people planning or trying to sell your home? Have you wondered how you could make your house more appealing than the other houses down the street that are also for sale? Well then, the west.com talks about some ways that might be helpful. "Staging your home" is a phrase that you have most likely heard many times, but what does it mean? Well, like a stage ready for a performance, it needs to look good.

• "Clean" and "neat" are the two words that best suit a staged look, so that means getting the carpet professionally cleaned, if necessary; and add rugs over parts that are stained or worn.
• Don't try to lie about the quality and worth of the home, but do try to make it look as presentable and appealing as possible.
• Rid all rooms of excess clutter. If there are too many pieces of furniture in a room, it will look crowded and it will make the room appear smaller than it is. Put some pieces of furniture in storage if necessary.
• Get rid of excess accessories. All those family pictures are appealing to you but mean nothing to a buyer. All those knick-knacks you've displayed for years are special to you, but again, mean nothing to a buyer.
• The buyer is looking at your house, not your life. The furnishings and accessories are there as decoration. Oh, and be sure everything is sparkling clean.
• A good paint job might be in order, and that means checking both the inside and the outside of the home to see what needs to be painted. Be sure that front door is welcoming, and if it needs painting, paint it.

And while we're talking about the exterior, don't forget the roof. There is something about a dirty roof that makes the entire house look old and yucky. Get the roof cleaned. Check for any missing or broken roof tiles. If your roof has shingles, check for loose or curled shingles. Get these things fixed. If a potential buyer sees a roof that is in disarray, the first thought might be that there is a leak in the roof, meaning huge troubles. The second thought might be that there could be mould in the attic or inside the walls. That could be a sign of more huge trouble.

So, now that everything is clean and neat, consider placing a pot of flowers outside your front door. You've painted it; now accessorize it. Some experts feel that yellow flowers are the most appealing in general, but select what you feel complements your home the best.

Remember: Aim for clean and neat. Good luck with that sale.

U.S. Home Prices Have Smallest Decline in More Than 2 Years

U.S. home prices fell 0.8 percent in January from a year earlier, the smallest decline in more than two years, as the U.S. property market begins to stabilize.

The region that includes Massachusetts and Connecticut led the decline, falling 3.5 percent, the Federal Housing Finance Agency said today in a report from Washington. In the area that encompasses North Dakota and Minnesota, prices jumped 5.2 percent, the only region to show an increase over January 2011.  Read More...

10 States With Highest Foreclosure Rates in February

A high number of foreclosures continue to beat down on several housing markets. For six years, Nevada has held the No. 1 spot for highest foreclosure rate in the country and still does, despite reaching a 58-month low in foreclosures in February, according to the most recent data from RealtyTrac. While the state is seeing a definite slowdown in foreclosures emerging, Nevada still has more than twice the national average of foreclosure filings. California, another state that typically follows closely behind Nevada, also continues to post a high foreclosure rate, despite seeing a big slowdown in its foreclosures too, hitting a 51-month low in foreclosure activity in February.

Nationwide, one in every 637 households received a foreclosure filing in February, a slight drop compared to the previous month, according to RealtyTrac.

Click here for the 10 states with the highest foreclosure rates in the country in February:

8 Banks to Be Fined for Wrongful Foreclosures

The Federal Reserve announced it will fine eight more banks for allegedly improperly foreclosing on home owners. The financial institutions were not included in the recent $25 billion mortgage settlement involving the nation’s five largest banks.

The eight companies are: EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks, and U.S. Bancorp. The Fed did not disclose the amount of the fines on the banks.

Banks continue to face fines and new mandates from federal and state officials due to the way they handled foreclosures over the last few years. Last April, government regulators had ordered 14 lenders and servicers to reimburse home owners who in 2009 and 2010 were improperly foreclosed upon. Eligible home owners have until July 31 to apply for reimbursement.

Read More: 8 Banks to Be Fined for Wrongful Foreclosures

Short Sales Get Shorter: New Deadlines to go into Effect

As part of a settlement with state attorneys general, the five largest mortgage servicers are adopting new requirements for short sales, which is expected to speed-up what has been known as a lengthy process.

Here are some of the new requirements for servicers under the settlement:

• Servicers must provide borrowers with a decision within 30 days after receiving a short sale package request.
• Servicers will be required to notify a borrower, also within 30 days, if any necessary documents are missing to process the short sale request.
• Servicers must notify a borrower immediately if a deficiency payment is needed to approve the short sale. They also must provide an estimated amount for the deficiency payment needed for the short sale.
• Servicers are also required to form an internal group to review all short sale requests.
• Banks will be considered in violation of the settlement requirements if they take longer than 30 days on more than 10 percent of the short sale requests. Violations can carry fines of up to $1 million and $5 million for repeat offenses.

"If a real estate broker can get a checklist from the bank detailing what documentation is needed, everything can be provided up front, and the bank will be required to give a thumbs-up or a thumbs-down within 30 days,” short sale specialist Chris Hanson with the Hanson Law Firm told HousingWire. “That's not a bad deal.”

Read More: Short Sales Get Shorter: New Deadlines to go into Effect

What do I need when getting "Pre-approved" for a home loan?

The very first step when you have decided you'd like to buy a home should be getting "pre-approved" for your loan. This will help guide you to the right price range and also if you find that perfect home, you will be armed with a pre-approval letter which is what you need to make an offer on the home. Sometimes waiting for that letter will take time and when you find the home you want, you may lose it while you wait for your preapproval to be completed. Best to do this step first! Your first consultation, whether over the phone or in person, you usually need the following basic information to tell your lender.

• Name, Address, Social Security Numbers for you and anyone else who will be applying for a loan
• Income amounts from last 2 years tax returns
• Debts from credit cards & loans
• Employment information

Or...to speed up the process, you can be proactive and bring everything with you when you visit your lender the first time. If you would like to be prepared, some lenders do not require these things up front, but some will require some or all of these things right away.

What to bring:

• Social security numbers for both your and your spouse, if both of you are applying for the loan
• Copies of your checking and savings account statements for the past 6 months
• Evidence of any other assets like bonds or stocks
• A recent paycheck stub detailing your earnings
• A list of all credit card accounts and the approximate monthly amounts owed on each
• A list of account numbers and balances due on outstanding loans, such as car loans
• Copies of your last 2 years' income tax statements
• The name and address of someone who can verify your employment.

(Depending on your lender, you may be asked for more information not listed here.)

If you are not sure who to use for your lender in the Fargo Moorhead area. We work closely with a couple of great lenders who do a wonderful job of making the process go very smoothly. When it comes to move in day on your new house, if you have a lender who does not have good organization or follow thru, it can delay your closing and cause unneeded stress for everyone. So, choose carefully. Many people choose the bank that they have their checking account with, not necessarily the best idea, they may be a good bank but not the best at mortgage lending or may not have the best rates and fees. Most banks sell their loans to a different lender right after closing anyway, so even though they do the loan, they aren't going to be your mortgage company. Here is a link to the lenders we have confidence in, please feel free to contact either one of these lenders, they both do a great job.

~Click here for Fargo Moorhead Area Mortgage Loan Officers~

Good luck and let us know when you are ready to start looking for your perfect home!  We'd love to help!

Groups Step Up to Stop ‘Forced’ Homeowners Insurance

Home insurance policies are generally a requirement in order for borrowers to get a home loan, and for those home owners who let their policies lapse or don’t buy it on their own, mortgage companies can do it for them. The result is often pricey homeowners insurance that home owners are then billed for.

Federal and state officials are becoming increasingly concerned about the high cost of these “force-placed insurance” policies, The Wall Street Journal reports.

The Consumer Financial Protection Bureau recently announced that it plans to issue rules “to prevent [mortgage] servicers from charging for this product unless there is a reasonable basis to believe that borrowers have failed to maintain their own insurance.”

Fannie Mae is also cracking down on these forced policies because it says that this type of coverage is usually much more expensive and makes it tougher for home owners to afford their payments. If the home owner falls into foreclosure, Fannie Mae then gets stuck with the bill.

“Fannie Mae said it would solicit proposals from insurance companies seeking to compete for its force-placed business,” The Wall Street Journal reports. “If it ultimately decides to do so, it would be a departure from current practice, in which lenders manage their own business relationship with force-placed insurance providers.”  Read More...

What is "Earnest Money" and how much do you need to buy a home?

"Earnest Money" is funds supplied by the buyer (usually in the form of a check) when writing up an offer in the effort to show the seller how serious they are about following through with purchase of the home. The more the earnest money, the more the seller stands to gain if the buyer backs out. The buyers agent would submit a copy of the check along with the buyers bank pre-approval letter when presenting their purchase agreement/offer to the Listing Agent. If the offer is accepted, the check is given to the Listing Agent and then is deposited into the Listing Agents Company Escrow/Trust Account within 24 hrs of acceptance. The funds are held there until the day of closing. The day of closing a check is written by the Listing Agents Broker to the closing company who then calculates it in on the buyers closing settlement statement (the breakdown of closing costs etc). In most cases it's a credit against the amount of money the buyer needs to bring to closing, the exact use of the earnest money is up to the buyers lender. If the offer never gets to the point of acceptance, the check is never cashed and it is given back to the buyer.

Earnest money varies in each situation, but to give you an idea of what you "may" need

(Use your agents expertise to help you decide how much, details of the offer can change this amount)

Purchase price of the home up to $50,000 - Earnest Money should be at least $500

Purchase price of $50,000-$199,000 - Earnest Money should be at least $1000

Purchase price of $200,000 or more varies with each individual situation, talk to your agent for guidance.

Remember, earnest money is money the buyer stands to lose if they decide to back out of the contract for reasons other than what is noted in the contract. Not only is earnest money lost in these cases but the seller may take legal action also. (Breach of contract, loss of time on market for their home, and many other possible fees. For more information on that issue please contact an attorney.) Earnest money is returned if the buyer cannot proceed due to financing, bank letter of proof is needed if this happens.

*A good rule of thumb: Do not enter into a contract unless you plan to follow through. 

This is for informational purposes only, these are only my guidelines, other agents may have different points of view, consult your agent or attorney for guidance.

Fed Renews Vow to Keep Rates Low

The Federal Reserve sounded more upbeat about the direction of the economy, citing signs of an improving job market and increased household spending, according to a statement released after the Fed’s annual policy-making committee meeting.

The Fed said they expect “moderate economic growth,” but threats still remain, such as a sluggish housing market. The Fed renewed its commitment at the meeting to keep interest rates at record-lows.  Read More Here...

Home Staging Versus Interior Design - 3 Staging Tips

Confusing home staging with interior design is an easy mistake to make. After all, both are focused on making the house more attractive. However, there is a fundamental distinction between the two that makes their outcomes very different from each other - the designer and the stager's end goal.

Interior Design versus Home Staging Design

You see, when talking about interior design, it's all about the home owner. The designer concentrates on pleasing this one specific person or family. The designer tries to "bring out" the home owner's personality and splays it all over the house. In short, interior design is all about personalizing the home.

In home staging design, however, is the opposite. The home stager's intention is to make the house's interior and exterior more appealing towards a whole group of home buyers. It is about trying to give the house a more universal appeal. While typical interior design is made for one person, the stager has his or her eye in a whole population.

That's why, if you are looking to sell your house, your best option is to stage your home. The wider the appeal of your house, the bigger the number of potential home buyers there would be wanting give your house a look. Home staging is about depersonalizing the house while still trying to make it attractive.

Here are 3 of the many tips you could use if you are interested in staging your home by yourself:

Read More...

Property Tax Collections to Start Downward Trend

More than five years after real estate prices began to tumble, Americans are finally starting to get property tax breaks on their devalued homes, a USA TODAY analysis finds.

Cities, counties and school districts today collect 20% more in property taxes than they did in 2006, when home values were one-third higher than now, but the tax tide is slowly starting to recede.

Last year, property tax collections rose just 1.2% — and actually declined 0.9% when adjusted for inflation, according to data from the federal Bureau of Economic Analysis. That's the first time property tax collections have fallen below the inflation rate since 1995 and only the third time in 40 years.

If the downward trend continues, property taxes may actually bring in fewer dollars this year than last even before adjusting for inflation. That hasn't happened since the Great Depression.

Property taxes generated $436 billion last year, about $66 billion more than in 2006 when home values peaked. Public schools get about 40% of this money. The rest flows to other local governments... Read More...

Gov't Trims Half of Its Foreclosure Inventory

The government cut its inventory of foreclosed homes by half in 2011.

Fannie Mae, Freddie Mac and the Department of Housing and Urban Development held roughly 150,700 REO properties as of Dec. 31, down 49% from the 296,000 at the end of 2010, according to an analysis of their collective financial statements.

HUD made the biggest dent last year with its portfolio of foreclosed Federal Housing Administration properties. However it holds the fewest amount of REO among the three. Its inventory totaled more than 32,000 at the end of December, down 47% from the more than 62,000 it held one year prior.

Fannie reduced its inventory to more than 118,000, down 27% from roughly 162,000 at the end of 2010.

Freddie, which reported its earnings Friday, cut its REO inventory to 60,500, down 16% from more than 72,000 the year before.  Read More...

STOP Foreclosure NOW!

Click below to answer 5 simple questions to see if you are a candidate to STOP foreclosure on your home... We have helped many people in the Fargo Moorhead area save their homes from foreclosure, we would like to help you next.

Don't wait!  Even if you think its too late... it's usually not!  We understand and we're here to help.

 "Avoid Foreclosure... 5 simple questions"

What Do Americans Want Most Once Finances Improve?

Fifty-one percent of Americans in a recent poll say that if their financial situation were to improve, they’d buy a home. Coming in second on the list of wishes, they’d make repairs or improvements to the home they already have, according to the poll of more than 1,400 Americans conducted by the National Foundation for Credit Counseling Web site, www.DebtAdvice.org.

Meanwhile, 17 percent of Americans polled said they’d upgrade their car and 9 percent said they’d take a vacation.  "Home ownership has traditionally been a part of sound financial planning," says Gail Cunningham, spokesperson for the NFCC, a nonprofit credit counseling organization. "With a combined total of 74 percent of respondents selecting a home-oriented option, the poll results strongly suggests that people continue to place value in owning a home, and are anxious to buy a house or improve their existing one."   Read More Here...

5 Ways for Sellers to Lure More Buyers

Pricing your home realistically will most certainly get potential buyers through the door, but how do you get them to fall in love with the home? A recent article at U.S. News & World Report offers some of the following tips for sellers in enhancing their home’s appeal.

1.  Add curb appeal: "Make sure the house is cleared of winter clutter, that windows are washed, that the front door is painted or clean,” says Brad Knapp, regional vice president for the National Association of REALTORS® for Ohio and Michigan. “You have to give the house good curb appeal.”

2.  Declutter: Remove clutter from the home so that buyers can actually see what all the home has to offer. Any excess belongings of the sellers should be stored in the garage or in a storage unit.

Read More: 5 Ways for Sellers to Lure More Buyers

Fargo Home Buyer Assistance Program ENDING SOON! ~Important Notice~

This notice is from the City Planning & Development Department of the City of Fargo...

After 18 successful years, the City of Fargo is ending its Home Buyer Assistance Program.  Due to cuts in Federal funding, the City will no longer offer down payment and closing cost assistance to eligible homebuyers.  The City will continue to accept applications for assistance as long as the closing date occurs prior to April 30, 2012.

Although the City of Fargo Home Buyer Assistance Program will no longer exist after April 30, the Nortrh Dakota Housing Finance Agency (NDHFA) is offering its down payment assistance program to homebuyers in Fargo.  The State offers a couple options for homebuyer assistance and they are similar to Fargo's program.  Information on NDHFA's home ownership programs can found on www.ndhfa.org.

For more information or to see if you qualify for the NDHFA program, contact Julie Carlson @ Bremer Bank.  Julie's contact information can be found here.

'Rehab' Loans Surge in Popularity to Fix Up Properties

Low mortgage rates and falling home values have brought housing within reach to more families than ever before, according to the latest National Association of REALTORS® housing affordability index.

Housing affordability in January reached its highest level since NAR began tracking it in 1970. The index -- which tracks median home price, median family income, and the average mortgage rate -- reached 206.1 in January.

"This is the first time the housing affordability index has broken the 200 mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," says Moe Veissi, 2012 NAR president. "For buyers who can qualify for a mortgage, now is a very good time to become a home owner."  Read More:

Minnesota on the mend: Recent economic data point to durable recovery

Minnesotans got a burst of good economic news in recent weeks, providing further evidence of a rebound.  The state reported a state budget surplus last week, albeit a narrow one that's already spoken for.  Jobs data out last week showed the state gained more than 15,000 jobs in January, with a net uptick of 29,000 over the past 12 months. The state jobless rate is now 5.6 percent, down from 6.8 percent a year ago. And things could look brighter for job seekers, as the number of unemployed Minnesotans for each job vacancy is now 3.2 to 1, down from 5.8 to 1, where the ratio stood a year ago.  Since the recession ended in the summer of 2009, "Minnesota has outperformed the U.S. and the rest of the (Midwest) region," said Ernie Goss, a professor at Creighton University in Omaha, Neb., who conducts a regional poll on economic conditions.  "Now, the rest of the region has caught up," he said. One reason is that housing was more of a drag on Minnesota, and the Twin Cities economy in particular, compared with other nearby states.  "But Minnesota's unemployment rate has been trending down pretty significantly," Goss said. "You'd have to say that bodes well for the economy."  However, some regions of the state are emerging from the recession in better shape than others.

NORTH DAKOTA OR BUST

Along the border with North Dakota, more Minnesotans are commuting to work - and not to the oil jobs in the western part of the state, say North Dakota officials.  Read More...

Warren Buffett on CNBC: I'd Buy Up 'A Couple Hundred Thousand' Single-Family Homes If I Could

View CNBC Video

Warren Buffett says along with equities, single-family homes are a very attractive investment right now.

Appearing live on CNBC's Squawk Box, Buffett tells Becky Quick he'd buy up "a couple hundred thousand" single family homes if it were practical to do so.

If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.


Read More: Warren Buffett on CNBC: I'd Buy Up...