Fed cuts key interest rate to historic low...may be good timing to refinancing your home & great timing for home buyers to lock in!

The Federal Reserve entered a new era Tuesday, lowering its benchmark interest rate virtually to zero — for the first time in its 95-year history — and declaring that it will now fight the recession by pumping out vast amounts of money to businesses and consumers through an expanding array of new programs.

Q: What's the good news in the Fed's actions?

A: The Fed's decision to nudge its key fed funds rate to a range of zero to 0.25% — along with its plans to buy securities that are backed by mortgages — should mean lower consumer interest rates, particularly mortgage rates. Low mortgage rates mean that more people can afford to buy houses, which will help revive the moribund housing market. A drop in mortgage rates will also allow homeowners to refinance their loans at lower rates, easing some of the burdens of their debts. Low rates also make it cheaper for companies to borrow and expand. That, in turn, is a powerful economic stimulus. Most major banks, including Bank of America and Wachovia, lowered their prime lending rate to 3.25% from 4% Tuesday.

Q: What's the bad news?
A: The Fed wouldn't lower rates this far and signal its willingness to take a host of unconventional actions if the economic situation weren't so dire. The nation is entering the 13th month of a recession, and the unemployment rate hit 6.7% in November, up from 4.7% a year earlier. The Fed is worried about an extremely severe recession and the outlying possibility of deflation — a persistent decline in prices. In a deflationary period, the value of assets falls, but debt payments become more onerous. At this point, deflation is not a major concern. But the Fed is monitoring conditions.

Q: Aren't such low rates and policies inflationary?
A: In theory, they can be. But at the moment, inflation is deader than King Tut. The government's consumer price index fell 1.7% in November, the second-consecutive record decrease.

Q: Will lower rates hurt the U.S. dollar?
A: They did on Tuesday: The dollar weakened against the euro and Japan's yen. Should those countries lower their interest rates, however, the dollar would likely rebound. Money typically flows to the currencies with the highest interest rates and the greatest safety.

Q: The Fed has never targeted an interest rate range before. Why now?
A: More as a practical matter than anything else. A zero-percent interest rate is hard to achieve. The range gives them a small margin of error. Further, as the Fed has dramatically expanded lending to financial firms and its balance sheet, it has also become harder to manage the funds rate.

Q: Does the Fed have a target in mind for mortgage rates?
A: No, but there's little doubt that the Fed would like lower mortgage rates, which is why the Fed is considering buying mortgage-backed securities.
If banks can sell their mortgage loans to investors — including the Fed — they will have more money to make new mortgages. A senior Fed official, who would not speak for attribution, told reporters Tuesday that it could be self-defeating for the Fed to set a target for mortgage rates. Instead, the Fed will monitor housing and economic developments to determine future actions.

Q: What does this mean for savers?
A: Lower returns. Rates on bank CDs and money market mutual funds closely follow the fed funds rate. Money funds, which invest in short-term, interest-bearing securities and distribute the income to investors, might be particularly squeezed. The average taxable money fund aimed at individual investors charges 0.86% a year in expenses. Three-month Treasury bills yield 0.03%.

Q: What is the Fed trying to do?
A: The Fed is pulling out all the stops to revive business and consumer lending and get the economy moving. The central bank is particularly focused on the wide difference, or spread, on interest rates between supersafe Treasury bills, for example, and market-based loans for autos, homes and other purchases.
Fed officials think the wide spreads are due to a lack of liquidity, as lenders pull back. They hope that by flooding markets with cash, using such strategies as buying mortgage-backed bonds, they can bring interest rates down and relieve such pressures.
The Fed has so far confined its programs to making loans by using high-grade securities as collateral. It could consider dipping into some riskier markets going forward, but only with backing from the Treasury Department to absorb some losses.

In summary, if you are a homeowner that has been waiting to refinance your home, now may be the perfect time! And if you are a home buyer, now may be a good time to lock in!

article courtesy of USA Today

Looking to live in the best suburb within DFW? consider Southlake!

According to Forbes Magazine, Southlake Texas is considered the most affluent neighborhood in the country with an estimated median household income of $172,945 and real estate growth. Since 2005, the area doubled its town square shopping center, which increased jobs and community revenue, thus bolstering the median household income by over $42,000 since the 2000 census.

Brian J.L. Berry, dean of the School of Economic, Political and Policy Sciences at the University of Texas at Dallas, says that what separates Southlake from its white-collar counterparts is undoubtedly its town square. "It is an upscale community with an expression of that status in its town square," says Berry. "If there is anything special about the suburb, it is that square."
The only problem is that there's not much room for Southlake to grow. Add to that the highest nationwide unemployment rate in 14 years and the second-lowest level of consumer confidence in 34 years, and it's clear that even neighborhoods like Southlake have the potential to be affected by the recession in some way.

Southlake currently has a number of available homes on the market priced to sell so if you are looking for the best of the best in the DFW area, then Southlake it is. Within minutes to Dallas and other surrounding cities, this town offers a great place to live with exemplary schools, lots of shopping and many family fun filled events.

To get a report on Southlake with available homes on the market, contact me.

Fannie Mae Restricts Entertainment Expenses for staff

I found this story to be interesting from CBS 11 News:

Fannie Mae CEO Herb Allison announced a new policy Tuesday restricting all entertainment spending for customers and employees, including meals, sporting events and holiday parties. The action comes after a CBS 11 investigation revealed executives from Fannie Mae spent more than $6200 at the Cowboys Golf Club in Grapevine during a September 29th outing. Receipts and documents obtained by CBS 11 show executives from Dallas, Chicago and Washington, DC were treated to golf with a mango towel service, food and hundreds of dollars worth of beer, wine and liquor.The outing came just 22 days after the federal government took over Fannie and pledged at least $200 billion in taxpayer funds to save the massive mortgage company from failure. CBS 11 brought the issue to Texas Congressman Jeb Hensarling, who sits on the committee that now oversees Fannie Mae. At the time, Hersarling said he was outraged and would call for an investigation.One day after the CBS 11 report aired, Hensarling sent a letter to U.S. House Financial Services Chairman Barney Frank and demanded an investigation into the activities uncovered by CBS 11. And in response, Fannie Mae's CEO sent this letter to Congressman Hensarling:

Dear Congressman Hensarling:Chairman Frank forwarded to me your letter to him of November 4, 2008, regarding travel and entertainment expenses for a Fannie Mae customer event in Grapevine, Texas, in late September. I feel that I should respond to you personally. In the first weeks of our conservatorship, we began a sweeping transformation of the way Fannie Mae does business in order to align our practices with the interests of taxpayers and homeowners. One element of this change was dramatically reducing or eliminating, as appropriate, expenditures in the areas of lobbying, entertainment, sponsorships, meetings and events, and certain charitable activities. While we were making these cutbacks, our firm wide review did not identify the event in Dallas. We regret that oversight, we were highly embarrassed by it, and we took immediate action to prevent a recurrence. We imposed a moratorium on all entertainment expenses for customers or employees including meals, sporting events, and holiday parties as Fannie Mae completed a comprehensive assessment of all such expenditures and activities.

The freeze was strictly enforced and continually communicated to all managers at the company.On November 26th, we replaced the moratorium with a new policy that is appropriate to Fannie Mae's current circumstances. It includes new restrictions and supervisory controls on gifts and entertainment whether provided by or offered to any company employee.The new policy was reviewed and approved by our federal regulator and Conservator, the Federal Housing Finance Agency. The policy will be strictly enforced.Let me assure you that our management team is constantly striving to serve the public interest more efficiently and effectively and gratefully welcomes ideas on how we can perform better.Please contact me if you have questions.Sincerely,Herbert M. Allison, Jr.

Today, Congressman Hensarling responded to Fannie Mae's new policy, saying "Mr. Allison expressed regret about the September golf outing and promised financial accountability within his organization. I appreciate Mr. Allison taking responsibility for the mistake and am satisfied with the decision to cease all recreational spending. I also want to thank Chairman Frank for his immediate attention to the matter. Congress will continue to monitor the situation to ensure that no more taxpayer money is wasted by the mortgage giant."

Commercial foreclosures increase in Dallas-Fort Worth

As foreclosures across the nation and in North Texas continue to mount, commercial properties have begun to pile up as well.

According to a report released by Foreclosure Listing Service Inc., Dallas-Fort Worth commercial real estate foreclosure postings have increased 32 percent above the same time a year ago. To date, 1,918 postings were filed on commercial properties in the area compared to the 1,458 for the same period in 2007.

However, George Roddy Sr., president of Foreclosure Listing Service, made note that commercial real estate foreclosure postings filed represented just 4 percent of the total postings recorded this year in the Metroplex.

“Of the approximately 53,400 total postings filed in 2008, just 1,918 of those were filed on commercial properties,” Roddy said. “These included postings of all types of commercial real estate such as retail centers, retail buildings, office buildings, industrial buildings, apartment complexes, unimproved commercial land and miscellaneous commercial buildings.”

Foreclosure postings of commercial real estate climbed at a steeper rate than residential postings for the area, jumping 32 percent this year compared to 2007 compared to a 17 percent increase for residential properties over those filed last year.

“Thankfully, this does not mean that the commercial property market is in big trouble,” Roddy said. “The largest share of commercial properties posted for foreclosure this year due to a mortgage delinquency has involved miscellaneous buildings that were smaller, older and in less desirable locations. There does not appear to be an alarming number of postings among the quality commercial properties.”

Roddy said one of the most significant differences between commercial foreclosure posting activity in today’s market compared to the real estate crash of the late 1980s is the quality of properties being posted.

“In the late 1980s, I saw a significant amount of signature, Class A properties posted for foreclosure,” he said. “But today, the vast majority of the commercial properties posted for foreclosure are either Class C properties or miscellaneous commercial buildings.”

Commercial Land

Postings filed on undeveloped, commercial tracts of land surged 65 percent above the previous year with 321 postings filed on raw land in the Metroplex in 2008 compared to 195 recordings in 2007

Postings of commercial land represented 17 percent of the total commercial foreclosure posting activity this year.

Apartments

Ranking second in highest gain, apartment communities experienced a 35 percent jump in foreclosure postings. This year, 347 postings were filed on apartment communities in Dallas-Fort Worth compared to 257 notices a year ago.

Foreclosure postings filed on apartment complexes equaled 18 percent of the Metro’s total commercial posting activity this year.

Industrial Buildings

Postings of Dallas-Fort Worth industrial buildings have climbed 32 percent higher than those filed last year with 148 postings for 2008 compared to 112 filed for the same period a year ago.

Postings of industrial buildings equated 8 percent of the total commercial posting activity for the year.

Office Buildings

In 2008, 119 postings were filed on Dallas-Fort Worth office buildings compared to 103 notices for this same period last year, accounting for a 16 percent gain.

Postings of area office buildings accounted for 6 percent of the total commercial postings filed this year.

Retail Buildings/centers

The lowest gain in posting activity among the commercial property types was a 15 percent increase in postings filed on Dallas-Fort Worth retail buildings/centers. In 2008, 135 postings were filed on retail buildings/centers compared to 117 notices in 2007.

Notices filed on retail building/centers comprised 7 percent of the total commercial postings filed in 2008.


courtesy of aleshia howe

Financial industry pushes for lower mortgage rates

Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
"You would have the mother of all re-fi booms," said mortgage industry consultant Howard Glaser.
The goal of the industry's proposal would be to take advantage of the unusually large difference, or spread, between mortgage rates and yields on government debt. On Wednesday, the yield on the 10-year Treasury note yield sank as low as 2.65 percent, while the national average rate on a 30-year fixed rate mortgages was 5.75 percent, according to HSH Associates.
In recent years, there has been about a 1.8 percentage point difference between the yield on a 10-year Treasury note and a 30-year mortgage rate, but that spread currently hovers around 3 percentage points.
Analysts said that the government could use its ability to borrow money at low rates to in essence flood the market for mortgage-backed securities. This increased demand would tend to push down the yield on mortgage securities sold by Fannie and Freddie, which now average about 5.5 percent because of investor concerns about default risks. Once those yields fall, the theory goes, lower mortgage rates should follow.
That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can refinance their mortgages and reduce their monthly payments, and eventually help arrest the slide in home prices since much lower mortgage rates would allow more potential buyers to qualify for loans.
"The goal is drive mortgage rates so low that home prices not only stop falling but begin to rebound," said Greg McBride, senior financial analyst at Bankrate.com.
If the government does buy up mortgage securities, it would be similar to the effort announced last week by the Federal Reserve to purchase up to $500 billion of mortgage-backed securities from Fannie and Freddie. The two mortgage giants, which were seized by federal regulators in September, own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.
The Fed, however, did not announce a specific target for mortgage rates, which plunged about a half percentage point after the announcement.
That caused new mortgage applications to more than double last week, according to the Mortgage Bankers Association's weekly survey released Wednesday. Refinance volume more than tripled, and made up for nearly 70 percent of all applications.
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don't want to lend to them.
"It doesn't do anything to help all the borrowers facing foreclosures," said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. "It's going to benefit the people who have equity in their home, who have decent credit and can refinance."
Treasury is considering several options, and could announce a decision as early as next week, industry sources said.
Treasury spokeswoman Brookly McLaughlin said she would not comment on speculation about actions the department may take in the future.
The proposal was reported Wednesday afternoon on The Wall Street Journal's Web site.
Treasury could make such a proposal as part of a request for the second $350 billion of the $700 billion financial rescue fund, industry sources said.
Treasury Secretary Henry Paulson has been criticized by members of Congress for using the bailout money to shore up Wall Street banks, while not doing enough to help homeowners facing foreclosure.
In recent weeks, a diverse set of industry groups from real estate agents to carpet makers have called on lawmakers and the incoming administration of President-elect Barack Obama to subsidize lower mortgage rates and beef up tax credits to help stimulate housing demand.
The National Association of Realtors has been pushing a plan under which the federal government would spend $50 billion to lower mortgage rates. It says doing so would yield about 500,000 more home sales.
Meanwhile, the National Association of Home Builders is leading a new "Fix Housing First" coalition to push for aid to the ailing housing sector, including a tax credit of up to $22,000 for anyone who buys a home before the end of 2009.

courtesy of Associated Press

Foreclosures in Texas DECLINE

Foreclosures in Texas have declined during the month of November, and are also down compared with the same month last year. For Sellers thats great news and for some buyers thats not so good news. Sellers now have an opportunity to sell their property closer to market value without the high competition of foreclosures. Buyers such as investors may want to consider buying soon.

According to a November report released Thursday by Irvine, Calif.-based RealtyTrac, a total of 7,843 homes in Texas entered the foreclosure process, a 20 percent drop from October 2008 filings and a 32 percent decline from filings from the same month last year.

In Dallas, 5,719 properties are listed for foreclosure by RealtyTrac, with 4,638 listed in Fort Worth, 2,035 in Arlington and 809 in Plano.

Nationwide, foreclosure filings fell 7 percent from October postings but rose 28 percent compared with the same month last year. According to the report, 1 in every 488 households in the U.S. were in foreclosure in November.

“Foreclosure activity in November hit the lowest level we’ve seen since June thanks in part to recently enacted laws that have extended the foreclosure process in some states, along with more aggressive loan modification programs and self-imposed holiday foreclosure moratoriums introduced by some lenders,” said James Saccacio, CEO of RealtyTrac. “There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months.”

Saccacio said delinquencies on loans not yet in the foreclosure process jumped to nearly 7 percent in the third quarter, which is a record high according to the Mortgage Bankers Association. Many of those delinquencies could translate to more foreclosures in 2009, he said.

courtesy of Dallas Business Journal

Celebrating 50 years of Downtown Dallas! 1958-2008

DOWNTOWNDALLAS is celebrating 50 years of making Downtown a vibrant and safe place to live, work and play. As part of the 50th anniversary celebration, an article documenting a decade by decade account of the rich history of Downtown will be included in each newsletter until the Annual Meeting. Join the celebration as we look back on 50 incredible years and forward to the excitement of the next 50!By 1958, the foundation for a thriving Downtown had been laid. Landmark buildings like the Old Red Courthouse, Cathedral of the Sacred Heart, Adolphus Hotel, and Municipal Building already graced Downtown’s busy streets. Financial and administrative offices had begun moving to Downtown, increasing its foothold as the business center of the city.

The arts began to cultivate in the city center through the opening of the Dallas Civic Opera which made worldwide news when its opening performance featured the acclaimed singer Maria Callas.It was at this time that the Central Dallas Association formed to promote the interests of Downtown through fostering public-private partnerships, acting as a liaison between businesses and the City of Dallas, promoting planning efforts and advancing incentive programs. Today, under the DOWNTOWNDALLAS banner, we continue to advance these priorities to ensure Downtown's position as an international destination to live, work, play and invest.

VIVA DOWNTOWN DALLAS!!!

Downtown Dallas Going Green

Scientists and poets have long described major cities as living, breathing organisms. Only ants live closer together than the people who live downtown. The bigger the population mass, apparently, the more efficient life becomes. People consume less energy and leave a smaller carbon footprint by parking the car and walking. More people, walking faster, encounter more people, and that encourages all kinds of interactive, cultural possibilities. The hectic, often frenetic pace of city life promotes creative and economic exuberance. And, then to stay sane, people like to go to the park to play and relax.Great cities have great parks, New York’s Central Park, San Francisco’s Golden Gate Park, and Chicago’s Millennium Park. Downtown Dallas is catching the wave and making a huge commitment to parks and greenspace. After all, a park is a people place, an urban oasis, a place to walk the dog, take a run, ride a bike, meet friends, enjoy nature, play with the kids, and let go of the stress induced during a 100 mile per hour existence. Whenever, I step into a park to recharge my battery, I take a deep breath and say, often out loud, “I’m free.”“Parks enhance our lives, and they make up a huge portion of what we see changing, and what people are looking for in Downtown Dallas,” says John Crawford, President and CEO of DOWNTOWNDALLAS, an organization with a passion for greenspace.

DOWNTOWNDALLAS has contributed more than a million dollars tohelp renovate Founders Square Park, Cancer Survivors Park, Pegasus Plaza, Pioneer Plaza, Dealey Plaza, and Ferris Plaza, and will contribute close to another million to help fund the construction of Woodall Rodgers Park, Main Street Garden, Belo Garden, and Pacific Plaza. “It’s gratifying to see, and this is just the beginning,” says Crawford.Construction will soon begin on the innovative Woodall Rodgers Park, an elevated 5.2 acre deck park, spanning the Woodall Rodgers Freeway between Pearl and St. Paul, creating a bridge between the Central Business District, Uptown, and Victory Park. It’ll have deep beams, capable of holding soil and tree roots, with an elaborate maze of pipes and conduits to support a dog park, playgrounds, cafes, gardens, performance stages, statues, and fountains.

Not far away, the Dallas Center for the Performing Arts Performance Park, scheduled for completion in 2009, will be the first public park in the Dallas Arts District, 10 acres of mature trees, great lawns and gardens, a reflecting pool, promenades and walkways. It sounds a little like the National Mall which stretches between the Lincoln Memorial and the Capitol in Washington, D.C.“Our park system suffered for so many years,” says Paul Dyer, Director of Dallas Park and Recreation. “Finally, we are creating these public/private partnerships. In 2002, the city got $100 million in matching grants from the private sector. In 2006, that amount grew to $342 million. If we want to be a city that speaks to the quality of life, embracing the parks is essential, and we’re doing it.”By the end of 2009, Main Street Garden, adjacent to the Mercantile Place on Main will feature garden rooms for relaxing, a dog run, toddler play area, an interactive fountain, food and beverage kiosks, and a large lawn for special events.Brad Davis with Office Equipment Company says, “From large scale projects such as the Trinity Bridges, Woodall Rodgers Deck Park and the Convention Center Hotel to smaller scale projects such as the adaptive reuse of 800 Jackson St. and the Santa Fe Warehouse; there is a sense of excitement and anticipation surrounding Downtown Dallas the likes of which I personally have never experienced.”Belo Garden will be the third downtown park created by Belo, which first published the Dallas Morning News in 1885.

The City of Dallas spent $6.5 million to acquire the land. The Belo Foundation is contributing $5.5 million for design and construction. And, Belo Chairman, Robert Decherd and his wife Maureen are chipping in $1 million of their own money, to convert a parking lot at Main and Griffin into an oasis in the heart of the city.“We want to make Dallas more inviting, more livable, more enjoyable for residents, workers, and visitors,” says Dan Blizzard, a Senior VP with AH Belo Corp. “We want people to get out of the office, take a DART train downtown with their children and grand children, and get outside and play. You are beginning to feel a very lively, hip, diverse urban energy. People like it, the young professionals and the empty nesters, who are tired of messing with the house and the pool. The parks are redefining the very fabric of Downtown Dallas.”

Courtesy of Harvard Companies

Uptown Dallas keeps growing!

There's no need for road signs to tell visitors they're in Dallas' Uptown district – just look for the construction cranes.Almost a dozen high rises are going up in the neighborhood just north of downtown. That's a higher concentration of construction than anywhere else in North Texas.Almost 2 million square feet of office space and more than 1,200 high-rise residential units are being built in the area between Turtle Creek and Woodall Rodgers Freeway.

Despite all the construction activity, tenants have spoken for more than half the space in the five office towers creating Uptown's new skyline."When we looked at whether we should go forward with our building, that was a big part of our analysis," said Greg Fuller, chief operating officer of Granite Properties.Granite is breaking ground on a 361,000-square-foot, 19-story office tower at McKinney Avenue and Akard Street.It's the only building under way in Uptown that isn't more than half leased.

But if recent trends continue, that won't be the case for long."Right now, we are the only opportunity for a lead tenant along Woodall Rodgers that wants great signage," Mr. Fuller said. "The other buildings that are under construction already have lease prospects that will take them above 80 percent."Later this month, the 19-story Rosewood Court office tower opens on Cedar Springs Road and is 70 percent leased. It's the largest office project to open in Uptown in a decade.Like the rest of the new buildings in the area, office space at Rosewood Court is renting for more than $30 per square foot – more than a third higher than in nearby downtown."It's a good time to be an Uptown building owner," said Tim Terrell, executive vice president of Stream Realty Partners, which is leasing Rosewood Court. "Without a doubt, it's the tightest market in the city."At the end of March, office vacancy in the combined Uptown and Turtle Creek markets was about 9 percent. That compares to about 20 percent areawide, according to statistics from Cushman & Wakefield of Texas Inc."There's a lot of momentum in that market," said Mike Wyatt, executive director with Cushman & Wakefield. "Law firms are a big driver of the Uptown market."In April, downtown law firm Patton Boggs LLP said it would move its offices from the Trammell Crow Center tower on Ross Avenue to the Texas Capital Bank Building, under construction at 2000 McKinney Ave. The new building is 70 percent leased and opens in September.And Haynes & Boone LLP will move its operations to the One Victory Park office building when it opens later this year at Lamar Street and Victory Avenue.

Real estate brokers say another big tenant, accounting firm Deloitte, is looking at potential locations in Uptown for a major office.Victory is the odds-on favorite for that deal.Several weeks ago, Victory developer Ross Perot Jr. said his Hillwood Development Co. is putting "a couple more office buildings on the fast track to keep up with these tenants."But don't expect a flurry of more tower groundbreakings this year.With the current credit crunch, developers are having a tough time lining up financing for new projects."I couldn't imagine anyone starting an office building unless they had a bird in the hand," Mr. Terrell said.

And a 24 percent drop in condo sales in North Texas through May has put the brakes on more high-rise development.There are more than 360 luxury condos being built in Uptown towers. More than 200 of the units have yet to sell.And 900 luxury rental apartments are going up in three more Uptown buildings. The first of these – 1900 McKinney Avenue – opens later this year.Atlanta developer Wood Partners plans to complete its 22-story Glass House apartment tower early next year near the Crescent.C. Todd McCulloch, Wood Partners' Dallas development associate, said the number of high-rise rental units being built in Uptown "is still manageable.""There is definitely a robust market for high-rise rentals right now," he said.And Uptown developers are hoping demand increases."We didn't know that gasoline would be over $4 when we started our building," Mr. McCulloch said. "The energy concerns will continue to drive people back into these close-in employment centers."Two million square feet of office space and more than 1,200 high-rise residential units are being built in Uptown.

Courtesy of Steve Brown
Dallas Morning News

New sports entertainment complex coming to Dallas Stemmons Freeway

A former industrial tract on Stemmons Freeway is being planned for a sprawling sports, entertainment and mixed-use complex aimed at North Texas' large Hispanic population.
LRS Real Estate has tied up more than 26 acres at Stemmons and Viceroy Drive, about six miles northwest of downtown Dallas, for a development called Foro Dallas.
Plans call for restaurants, retail and several hundred apartment units.
"Yes, we have a new development planned," said LRS president Robert Peinado Jr. "It's about building a town center for the Latino market.
"So far, we've been trying to keep it low key."
But word of the big project has been spreading in the Stemmons business corridor.
The Interstate 35E site was cleared recently.
"There was a 371,000-square-foot building that we took down to clear the site," said Dean Flowers, the real estate broker who's handling the land sale. "The land over there is worth more than the building was."
The property is owned by a trust and is valued for taxes at more than $5 million.
Mr. Flowers confirmed that LRS has the land under contract but has not closed on the deal yet."It's almost 27 acres – you can't find that much land anywhere in that area," he said.
LRS hired Dallas architect HKS to design the Foro complex, which will have 20 covered, multi-use courts for such sports as soccer, volleyball and tennis. Plans also call for a banquet hall and hospitality suites.
And about 250,000 square feet of total retail space is included.
Mr. Peinado said the first phase of the project will cost $50 million and should start by the fourth quarter. The first anchor tenant will be a 30,000-square-foot Famsa appliances and furniture store.
The developers hope to do similar Foro complexes in other markets.
They estimate that the Dallas project could attract more than 3 million visitors a year.Mr. Peinado touts more than 25 years' experience in real estate in the U.S. and Mexico, including more than $30 million in investment and development in this country.

courtesy of
STEVE BROWN
The Dallas Morning News

THINKING OF INVESTING INTO REAL ESTATE IN DALLAS? WELL, NOW IS A GOOD TIME!

Even with the increase in foreclosures and recession threats, Dallas remains as one of the safest real estate investments for your future compared to Miami, Las Vegas, Orange County or Phoenix that have experienced major declines in the real estate market. http://www.msnbc.msn.com/id/23500987/(Click Here for Article on Real Estate Depreciation)

Dallas is considered one of the most diverse economic major cities in the U.S., including its continued low cost of living, diverse climate, flat land, job opportunities, family oriented, business oriented, and busines development growth, almost everyone is migrating or desiring to relocate to Dallas. The United States Census recently reported that Dallas is a great place to raise a family, retire, relocate a company. The US Census reported that Dallas-Fort Worth was the most popular major city for relocation and population growth in America! Something we Texans already know!

Real estate investments in Dallas have edged up roughly 3% in the first three months of 2008. http://www.dallasnews.com/sharedcontent/dws/bus/stories/040408dnbusdfwlistprices.29f82aed.html (Click Here for Article on Dallas-Fort Worth Home Price Appreciation)

Sine the sub-prime mortgage explosion, first time homeowners are finding it difficult to to secure financing for a new home forcing them to their only option which is renting. And since the population of DFW is growing, renting is becoming more of a reality right now and rental rates are increasing with limited vacancy which is great for investors.

Investing in the Dallas-Fort Worth real estate market looks goof for now and the future. With a decrease in rental property vacancies, increase in rents, and steady appreciation looks to provide an annual return on investment in the 15-20% range.

There is no doubt that we can say that real estate investment in Dallas is one of the safest and economical investments currently in our country.

linda luna
luna@greatdfw.com

REALITY OF A REALTOR...REASON WHY YOU SHOULDN'T GIVE A REALTOR THE RUN AROUND...

I came across this video clip of a Realtor who has gone from making $130 a year to $40,000 a year due to the decline of the real estate market. My point of this video is to create the awareness that buyers should work with only one realtor that he/she can depend on. Many buyers will contact realtors and will have 3-5 realtors show them properties, and although a buyer may not have a buyer/rep agreement with an agent, most agents will assume that the buyer is solely working with them and in good faith will not ask a buyer to sign an agreement but then later realize a buyer just used the realtors time to show properties knowing they were not going to consider using that realtor in the first place, so please respect the realtor that is taking the time to show you homes, send you properties, speak with you over the phone, etc and use that agent because she/he is a professional and as you will tell from this video, Realtors are human too and their lives are depended on closings and they don't deserve meaningless phone calls, showings, wasted time, etc... so please, use ONE realtor and let her/him do all the callings and showings for you, because he/she will get the job done :-)

SHORT SALES...BEST ROUTE FOR BUYERS AND SELLERS..

I came across this great informational video clip regarding short sales (link below)

If you are facing possible foreclosure on your home, consider a short sale and keep your credit clean...Buyers, if you are looking for a really good deal, then consider a short sale verses a foreclosure. When a home forecloses, Banks usually relist the bank owned property at or above market value since they have already lost more money foreclosing, because they are trying to get as much as possible back. With a short sale, a lender will consider a payoff amount much lower than market value verses foreclosing and risk having another home on their hands, this usually allows a buyer to walk into a nice line of equity upon purchase. The downside to short sales is that it is not a short sale, meaning, it can take up to 30 days for a bank to finally accept or respond to your offer and another 30 - 60 days (or more) before it will close.

MORTGAGE RATE FORECAST FOR APRIL 2008

(courtesy of huliq)

In the beginning of March, mortgage rates for a 30 year fixed rate mortgage averaged 6.13 percent. Throughout the month mortgage rates slightly increased before the Feds lowered interest rates in the middle of the month and rates began to fall for the first time since February which helped the 30 year fixed rate mortgage average5.83 percent at the end of the month.

During the month of April the Bush administration is expected to pass a mortgage aid package program that would benefit homeowners and lenders alike. The program is based on home equity, allowing lenders to refinance homeowners who owe more than the homes value for what the property is currently valued at in exchange for the financial backing of the federal government on the forgiven equity.

If the mortgage aid package is enacted upon early enough this month it could push mortgage rates down up to a quarter of a percent by mid month. Accompany this with the possibilities of another rate cut by the Federal Reserve towards the end of the month and you might see mortgage rates falling slightly under 5.50 percent for a 30 year fixed.

April is also when single family homes begin to pick up a head of steam for a lot of cold weathered states around the country. Homebuyers are still skeptical about home values which have lead to a lot of “bargain hunters” making offers well below the asking price. Although this data likely will not affect April’s mortgage rates, it may be a month where we begin to see home values finding their equilibrium.

Barring any major crisis throughout the month, 30 year fixed mortgage rates for the month of April should average anywhere between 5.625 percent and 5.75 percent, with the high at 6 percent and a low at 5.45 percent.

TOP TIPS TO AVOID REAL ESTATE RIP-OFFS

(courtesy of homevestors)

According to the FBI, Real Estate Fraud is one of the fastest growing white-collar crimes in the United States. It is costing countless people their single most valuable asset. Hardworking Americans are losing what they’ve spent a lifetime to achieve. And the crime doesn’t discriminate. It’s called real estate fraud, and it’s hitting people across all socio-economic backgrounds. Welcome to a national epidemic, where stealing homes is not about baseball. Instead, a series of circumstances have collided to make the American Dream of homeownership a series of broken dreams that are making headlines across the country.

Foreclosures across America are up approximately 87 percent over last year as a result of loose lending practices. The fallout from subprime mortgages has strapped millions of homeowners with more home than they can afford. Appreciating real estate is often an oxymoron. And, as the saying goes, what goes up must come down.
While the Center for Responsible Lending estimates that 2.2 million American households will lose their homes to foreclosure and risky lending practices, there are other homeowners who should be safe, but aren’t. There are tragic stories of homeowners with properties chock full of equity falling prey to predators trying to strike it rich on their front porches. With everyone looking like a possible target, there’s a national alarm going off. And the number one weapon of defense for consumers is education – information that can help save you from a home invasion of the worst kind.

What homeowners should do before selling their home…

1 Lease-options are often no option at all:

A common practice in today’s market is a lease-option where a real estate investor
offers to buy your home to save you from foreclosure and lease it back to you. But these deals often spell catastrophe. If you are at risk of going into foreclosure because you cannot make your mortgage payments, don’t be seduced by a lease-option agreement where the monthly lease payment is equal to or of higher value than your current mortgage payment. While it may appear like the investor is there
to help you, it takes only one missed payment on a lease-option contract for him to have legal cause to evict you. Still, part of the attraction to this deal is the idea that you can buy your house back over time. You get to save your credit. And you never have to move out of your home. Yet, unsavory con-artists may
make it an uphill battle. Often presented as a lease with the option to buy over time, the written contract may not actually reflect that a percentage of the lease payment goes directly toward the purchase price of the home. And in the end, the home can only be bought at full price again, placing you, the occupant, at no
advantage from any other buyer off the street. Regardless of your situation, don’t ever enter into a lease-option agreement until you read the fine print on the contract. The better solution if you need out of your mortgage, may be to find a way legally and physically out of the home, itself. And the “short sale” might be your solution. In this case, you negotiate a settlement with your mortgage company. If a settlement is reached, you may list your home with a realtor and sell your home to a buyer or investor and then, you will avoid foreclosure and you can move into something you can afford.

2 Beware of buying on assumption:

If you want out of a house for any reason and someone offers to assume your loan, don’t assume you’re free of obligations. If state compliant legal documentation from the lender approving the assumption and acknowledging the new owner as the lienholder is not signed, legally, your mortgage lender can still recognize you as the responsible party on the loan. And if the house goes into foreclosure down the line or the person who assumed your loan begins to miss payments, don’t be surprised when creditors come looking for you. Another practice is a “Sub-To” scam, whereby a real estate investor agrees to assume your mortgage based on the promise
of future equity sharing on the sale of that home. Meanwhile, the investor will lease the house to another unsuspecting person, collect the monthly payment and pocket the money without making payments to the mortgage company.
In the end, the lender may not care who’s making the payments as long as they are made. But your name and credit are still at stake if things go south.
Having someone assume your loan may provide an immediate solution. But you also need to think long term about your future housing needs or desires down the road. Unless the lender agreed to the assumption and at closing, provided the
proper documentation acknowledging the assumption and new owner as the lienholder, when you go to apply for your next home loan, the lender may think you’re trying to buy a second house. Or, if the payments have fallen behind on your previous
address and the mortgage is still in your name, you could be denied for a loan because of someone else’s track record n mortgage payments in your name.

3 Avoid straw buyers:

Speaking of payments in one’s name, there’s another red flag to look for when the person who makes the offer to buy your home is not necessarily the person seeking the mortgage loan for that amount. While it is hard for a seller to uncover this ploy, this tactic is called using a straw buyer and is a federal crime. It involves a third-party who has good credit and poses as the buyer of the property to the mortgage company to secure a loan and perhaps represents to the lender that they will live in the property in order to induce the lender to offer a lower interest rate. At the end of the day, you’re essentially selling your house to someone with a borrowed identity, while the lender is agreeing to a loan for someone who may never intend to physically live in the home or pay any of the mortgage payments to the lender. The straw buyer may be someone induced to provide their credit and sign owner-occupied mortgage documentation for monetary compensation from a real estate investor. The investor may promise to rent the property to cover the mortgage
payments for the straw buyer. If the house is foreclosed, the lender looks to the straw buyer to recoup the loan, and the investor may try to walk away with the cash.
If caught, however, they all may walk to federal prison for conspiring to defraud the mortgage lender. And the court system is full of cases seeking retribution for the millions stolen from mortgage companies.

4 Do not agree to contract to sell your home for an amount above your asking price if you are asked to refund the difference after the closing or if you are told that the extra money will be used for repairs that have not yet been completed:

It’s natural to want to sell your home for the highest possible price. But steer clear of buyers wanting to roll in socalled home improvement costs thereby creating a higher asking price. This is a red flag and a common scheme to defraud
a mortgage lender. And it may make you an unwilling, but liable, participant in the lender fraud. The key ingredient here is usually a real estate appraiser who will appraise the home for a falsely elevated value. The buyer, a person who never plans to live in the house, will then secure a loan that covers that higher value. But the buyer does not intend to make those home improvements. Instead, the cash difference between your asking price and the total loan amount is divided among the co-conspirators in the fraud scheme. Before long, the house goes into foreclosure, and the lender gains title to a home worth less than the value of the loan.

5 Do not agree to terms outside of the contract:

The media increasingly reports about people who didn’t know what they were signing, didn’t read through all the papers, didn’t involve a real estate attorney, or didn’t do in hindsight a number of things they wish they would have done. What they were told and what they agreed to in ink were different things. Before they knew it, they were living a nightmare. Getting everything in writing on your contract is only part of the job when selling your house. You also want to make sure that if an addendum or exhibit is added to the contract, this addendum or exhibit must be acknowledged in writing before the signature line of the contract. Without this acknowledgment, any addendums to the contract risk getting mysteriously left off what is provided to the lender. If a buyer wants to make an offer on your house but asks to leave certain terms out of the contract, it is a signal he may be hiding something from the lender. When you sign on the dotted line, you need to make sure all of the terms for the transaction are above your signature. That leaves no question about the full scope of the offer between buyer and seller for the mortgage lender approving the loan.

6 Be careful when selling your property:

Whether your home is on the market or not, make no decision lightly. Your home maybe the largest, most valuable asset you own. It’s called a nest egg for a reason. You don’t want to gamble with it or risk losing it altogether. If you’re even considering selling your home, you only want to deal with professional realtors or reputable people. Take every step with caution. Know what to expect ahead of time. Never be afraid to ask your realtor or your selling person questions. Clarify anything you do not understand when researching selling your home. And remember, if a deal sounds too good to be true, it probably is. Your best professional ally in the process is a good real estate attorney and professinal realtor. An attorney will help make sure the legal terms of a contract on your home meet your needs. An attorney and realtor are skilled at the buying and selling process. An attorney knows what is legal and what is questionable when it comes to selling one of your most prized possessions. He or she also limits the chance for last-minute surprises in the selling process. But hiring a real estate attorney to represent
you does cost money. And if you can’t afford it, you should still have your realtor to review a contract when an offer is made to buy your home.

7 Look out for people who offer to save you from foreclosure. Work with your lender first:

Maybe you don’t want to sell your house but you’re feeling pressure like you have to. It’s the old theory that having something is better than having nothing. In other words, get out from under a rising debt before you’re thrown out.
But is it too early to think this is the only option? If you are unable to pay mortgage payments and are falling behind in your financial commitments, your first goal should be to try and work with your lender. It’s in your lender’s interest not to lose money, and it’s in your interest not to lose your house. Negotiations may be possible and mutual interests are often met by working together to find a solution. Depending on how far behind you are in payments, lenders often risk more hassle and possible monetary loss by foreclosing and gaining title to your property. The time it takes for the lender to market and sell it to another owner may be over-burdensome to the lender. The better choice might be to work with you on a payment plan for you to catch up. If an agreement cannot be met and you continue in financial distress, only then should you entertain other options. Of course, people may offer some of those options before being asked. And their intentions may or may not be good ones. Today, preforeclosure lists are public knowledge on courthouse steps across America. Internet companies devoted to circulating these lists have sprouted. Anyone can use that knowledge as a reason to knock on your door and offer to rescue you from potential disaster. These people are uninvited guests until you decide otherwise. You want to check their references, talk to past customers, and find out if any complaints have been made about them to the Better Business
Bureau. Do they have your best interests in mind? Even under threat of foreclosure, you only want to surround yourself with legitimate, ethical business people.

8 Demand references from mortgage companies and real estate agents:

If you’ve decided to move forward and sell your house, the choices are overwhelming with who to work with in the process. That’s why you have to do your homework.
Your credit history, tax records, home improvements and house inspections offer a transparent look at what kind of potential client you are to real estate agents and mortgage bankers. Your background check on them is that same checklist
in return. Ask for several references and then follow through on checking each one. You should also verify that these parties are licensed to practice in the state or city where you live. This information makes up their resume. It’s your decision to
work with them for this very important job: Selling your home. If you’re not completely satisfied with their abilities, keep on “interviewing.” The job is still open. What else homeowners should do today…Obtain your personal credit report.
This should be done every year and/or when you make significant purchases to ensure that no false loans exist in your name.

The Federal Trade Commission estimates that more than 9 million Americans have their identities stolen each year. With those odds, you and your good credit score are things to protect. Don’t wait until the day you plan to sell your home and
try to qualify for a loan on your next home to find out that a stranger has erased years of your good credit. Make sure that you are listed as the only owner of your home or land. If you have questions about this, you can contact the customer service department of your title company. Check your tax bill. Each tax bill you receive will verify the homeowner’s name or names. You can verify this information with the tax assessor’s office, in the real property records or with your local real estate attorney. Shred documents and mail that contain personal information before throwing them away. Imagine the kind of personal information that exists in your trash. Would you want someone having access to credit card statements, banking statements, Social Security Card number and the wealth of things in your name that could be used
to steal your identity? A shredder sold at any office supplies store is your answer.
As the king or queen of your domain, your home is valuable and needs protecting. Whether you’re happy where you are and never plan on moving, or you’re considering selling your home, you don’t want to become a victim of real estate fraud. These tips can help ensure you, your credit, and your castle from predators looking to cash in at your expense.

FIXED MORTGAGE RATES BETTER THAN ADJUSTABLE RATES?

(PRNewswire-COMTEX)
Fixed mortgage rates inched lower over the past week, with the average conforming 30-year fixed mortgage rate now 5.95 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.49 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing was up slightly, to 5.53 percent. The average jumbo 30-year fixed rate declined modestly to 7.37 percent. Adjustable mortgage rates were very mixed, with the average 1-year ARM rising to 6.25 percent while the average 5/1 ARM plunged to 6.16 percent.

It is unusual to see fixed mortgage rates lower than the rates offered to borrowers taking adjustable rate mortgages. But that is exactly the situation we are currently in, with rates on adjustable mortgages having been pushed higher in recent weeks due to a secondary market for adjustable rate mortgage- backed securities that is in disarray and being plagued by more sellers than buyers. Adjustable rate mortgages have higher instances of delinquency than fixed rate loans, and investors are exacting a price for that by commanding higher returns. This means higher rates for borrowers. Lenders not dependent upon the secondary markets are in a position to offer better terms, underscoring the need for consumers to shop around.

The mortgage rate winds can change direction quickly. Two weeks ago, the average 30-year fixed mortgage rate was 6.39 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,249.70. With the average conforming 30-year fixed rate now 5.95 percent, the same $200,000 loan carries a monthly payment of $1,192.68.

SURVEY RESULTS
30-year fixed: 5.95% -- down from 5.98% last week (avg. points: 0.49)
15-year fixed: 5.53% -- up from 5.46% last week (avg. points: 0.39)
5/1 ARM: 6.16% -- down from 6.44% last week (avg. points: 0.47)Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates .

Contact me to get help find your next home while rates are still low! luna@greatdfw.com

JUST BECAUSE I AM A MAVERICKS FAN!

I had to post this in hopes that all you Mavs fans will be rooting for our team tonight, and because my other company (outside of real estate) LunaChic PR [www.lunachicpr.com] represents an emerging Mavs player, so we stand behind him 100%
GO MAVS!!!!!

(E.Sefko - DMN) The Mavericks need a win tonight at Denver to stake their claim that a playoff spot is theirs for the taking. It won't nail it down, but it would give them a working margin for error.

A win would give the Mavericks a three-game lead on No. 9 Denver, plus the tiebreaker. A win means they could finish the final 10 games of the regular season 4-6, and the Nuggets would have to go 8-2 to pull ahead and knock the Mavericks out of the postseason.

"We talk about how it's just another game," coach Avery Johnson said. "We're not saying that anymore. We're playing single elimination. That's the way we've got to look at it."

The Mavericks split two meetings with the Nuggets at American Airlines Center. Because they only play Denver three times this season, this is the Mavericks' only trip to Pepsi Center.

They will be without Dirk Nowitzki, who stayed in Dallas to rehabilitate his injured left ankle and knee as the team left Wednesday. It's conceivable he may rejoin them later on the three-game trip.

But for now, it will be the rest of the Mavericks who have to make a stand if they are to protect their playoff standing.

As bad as the Mavericks' 1-3 homestand was, the trip that continues at Golden State and at Los Angeles against the Clippers offers the chance to bury the recent losses.

"You can easily turn a bad week into a good week by winning these next three," Jason Kidd said.

The alternative would be the onset of the Dirk-less darkness. If the Mavericks can't keep afloat while their star is out, then there's no reason for him to come back at all.

It starts tonight.

"They're trying to get into the eighth spot," center Erick Dampier said of Denver. "I'm sure it's going to be a physical game. Those guys want to get in the playoffs, but we're going to do everything we can to not let them in the playoffs."


With Dirk Nowitzki (right) hurt, the Dallas Mavericks will look to others to avoid being on the outside of the playoffs looking in. The Nuggets have won three in a row. They are 28-7 at home, where they haven't lost in more than a month.

The Mavericks, of course, would like to be full strength for this stretch. But even when they were healthy, they lost home games to top Western Conference contenders.

Now, they face the sort of adversity that often can galvanize a team.

"A buddy of mine took me to lunch yesterday," Johnson said. "He's in the oil business, and he's pretty successful now, but he dug some dry wells before and dug some wells that didn't produce what he thought they would produce. But he kept on digging. And that's what we've got to do, keep on digging, and hopefully, we'll hit one of those big-time gushers.

"We know we're going to have a tough task in Denver. We predicted this way back in January. There can be a shifting and a swinging in the standings. Nothing's decided yet. With 10, 11, 12 games for some teams left, there's still great opportunities out there, especially for us."

More than anything, the Mavericks will determine tonight just what kind of margin for error they will have in the season's last 10 games.

GO MAVS!!!!!!!!!! GO MAVS!!!!!!!!!!!!!!!! GO MAVS!!!!!!!!!!!! GO MAVS!!!!!!!!!!!!!


OKAY, NOW BACK TO BUSINESS! SEE YA'LL IN THE NEXT POST!

Linda

EMPLOYMENT OPPORTUNITIES RISE IN DALLAS-FORT WORTH...HOPE FOR UNEMPLOYED HOMEOWNERS!

The Dallas-Fort Worth unemployment rate slipped to 4.3 percent in February, while the statewide rate reached a 30-year low of 4.1 percent.

The Dallas-Fort Worth jobless rate was down from 4.6 percent in January and 4.5 percent in February last year. The numbers are not adjusted for seasonal fluctuations.

The February unemployment rate was 4.3 percent in the Dallas-Plano-Irving area and 4.2 percent in the Fort Worth-Arlington area, compared with 4.6 percent and 4.5 percent, respectively, in January.

Statewide, the seasonally adjusted unemployment rate decreased to 4.1 percent in February, down from 4.3 percent in January and 4.5 percent in February 2007, reflecting lows not seen since the mid-1970s, according to the Texas Workforce Commission.

Texas' jobless rate was well below the national rate of 4.8 percent.

Seasonally adjusted nonfarm employment in Texas grew by 13,500 jobs in February. Texas employers added 235,000 jobs over the past 12 months, for an annual growth rate of 2.3 percent.

"Texas has once again reached a prominent benchmark - a more than 30 year record low for unemployment," Texas Workforce Commission Chairman Tom Pauken said in a statement. "Our falling unemployment, coupled with this month's significant job gains, indicates the sustained health and vitality of the Texas economy."

Among the metropolitan areas surveyed, Midland had the lowest jobless rate, of 2.6 percent, while Odessa was second at 3.1 percent, followed by the Amarillo at 3.2 percent.

The trade, transportation and utilities sector had the strongest job growth, with 6,600 jobs added in February and 37,400 jobs created over the past year. The leisure and hospitality industry added 4,900 jobs last month and 42,400 jobs in the past year.

The construction industry gained 1,900 positions in February and had an annual job growth rate of 4.3 percent. The financial activities and professional and business services sectors grew by 1,800 and 1,600 positions, respectively, adding more than 60,000 jobs this past year

(courtesy of DBJ)

DALLAS- FORT WORTH RANK #1 AS FASTEST GROWING METROPOLITAN AREA IN THE U.S.

(CNN) -- More people moved to Dallas-Fort Worth, Texas, than to any other metropolitan area in the United States last year.

The population here increased by 162,250 between July 1, 2006, and July 1, 2007, according to a new U.S. Census Bureau report. Atlanta, Phoenix and Houston also saw their ranks swell by more than 100,000 people each.

The census measures metro areas with the biggest population increases, as well as the fastest-growing metro areas.

Indeed, eight out of the top ten fastest growing metro areas were located in the South, and the South also accounted for more than half of the 50 fastest growing regions.

The U.S. Census bureau grouped counties into 363 metropolitan areas across the country. Those metropolitan areas contained 251.9 million people, or 83.5% of the nation's population.

HOW TO GET A GOOD DEAL ON A FORECLOSURE

Learning to maneuver the maze of options for buying property before, during and after foreclosure can help make the difference in whether a buyer invests in a discount or a money pit. The look of the home on paper or from the curb can be deceiving. It does not mean that all foreclosed homes are in bad shape, many foreclosed have been brand new by builders or barely lived in homes that owners just purchased a few years ago but defaulted due to having a sub-prime loan, but still, there are risks involved. Home buyers who venture into the wild world of foreclosure sales won't be snapping up luxury homes for $100, like some advertisements may suggest.

But patient buyers might see a 5 percent to 35 percent discount, according to those who watch the foreclosure market.

Here are types and ways to purchase a home in or near foreclosure and tips for managing each:

Type 1...
Foreclosure auction for delinquent mortgage: These homes are purchased on the county courthouse steps (check with your local county on the auction dates and location)

How to buy a delinquent mortgage foreclosed home: This is the type of sale everyone thinks of when they hear of a foreclosure sale. The buyer waits for the trustee, usually a lawyer representing the bank, to arrive. The trustee reads the legal description and then asks for bids. It's not organized, it's often hard to hear and frequently several trustees are auctioning their properties at the same time. The winner pays cash, usually by cashier's check, for the entire amount bid immediately after the sale. Many are sold before the auction ever takes place and many are also bought back by the bank because there are no bids and assigned to an agent and placed on the real estate market.

Advantages: The average price of a home bought in Tarrant County by this method is 68cents on the dollar. Nongovernment liens, such as a second mortgage, fall off the property through foreclosure, lowering the number of debts that need to be made good after the sale.

Risks: Buyers usually can't go inside to inspect the house before the sale. There could be expenses associated with evicting the former homeowner. Some homes can be weighed down by government liens, such as income taxes owed. Novices should find someone to show them how the process works and attend at least a couple of auctions without bidding. "There are a lot of people who go to the auction and really get burned," said Roddy, whose company offers classes on how to buy foreclosures.

How to find properties: All properties are posted in the deed record office of the County Courthouse. Some companies sell lists of properties for sale.

Type 2...
'Constable Sale' (or Sheriff's Sale)

What it is: A delinquent tax sale

Where to buy it: On the county courthouse steps (see your local county for info)
How to buy it: In most counties, a constable's office sells the properties under a tent; buyers must bring a bidder authorization form from the county tax assessor's office.

Advantages: The sale goes to the highest bidder who can pay the property taxes, so it's possible to buy a home for, say, $5,000. If the homeowner wants to get the house back later by repaying the taxes, they must pay the person who bought the house the tax amount plus 25 percent interest for the first year and 50 percent interest in the second year. The tax sale wipes out all debts that come with the property, except government liens.

Risks: The homeowner has the right to buy back homesteaded property for up to two years after the sale (it's six months for nonhomesteaded property). The property must be purchased by cash, cashier's check or money order immediately at the end of the sale.

Type 3...
'Writs of execution' or 'abstract judgment' sale

What it is: Part of the sheriff's sale; the home is considered an asset that the court orders sold to repay debt

Where to buy it: On the county courthouse steps (see your county for info)

How to buy it: In most counties, a constable's office sells the properties under a tent along with properties sold for delinquent taxes

Advantages: Unlike a sale for property taxes, the original homeowner has no right of redemption

Risks: Unlike a foreclosure sale, no liens are wiped off the property when ownership is transferred; the property must be purchased by cash, cashier's check or money order immediately at the end of the sale

Type 4...
Short sale

What it is: Making a deal with a lender to buy a home that will probably be posted for foreclosure.

How to buy it: A buyer agent contacts the home's listing agent and makes an offer. A lender can usually take anywhere from a week to 30 days to respond to the offer.

Advantages: Few or none of the expenses that come with the foreclosure process are incurred by the buyer. "The house is usually better taken care of because the owners still reside in the home and did plan on moving. The lender may take a discounted price to cut its losses with the current homeowner who can't make payments. "If the homeowner owes $200,000 and the fair market value is $150,000, the bank is already looking at losing $50,000," Parmelly said. "If the buyer comes in at $130,000, it's possible the bank may consider that offer."

Risks: The transaction sometimes has to move quickly, especially if the home has been posted for foreclosure. A home has about 21 days between the time it is posted and the auction, and a good agent can get a deal going in time to stop the auction, Parmelly said. The buyer should be prepared to buy as-is and bring several thousand dollars to the closing table.

How to find properties: Contact your realtor to locate these properteis.

Type 5...
Foreclosure sale/REO properties

What it is: Sale of real-estate owned properties

How to buy it: The buyer's agent negotiates directly with a lender that owns a foreclosed house (most of these homes are assigned to a listing agent who's job is to only submits all ffers to the bank.)

Advantages: Often, the initial asking price is about 5 percent below market value, After 30 days on the market, they usually get reduced again; sometimes they refurbish the properties. This is usually the best way for an investor or home buyer looking to score a good deal because the title is clear and the lender doesn't have any emotional attachment to setting the price.

Risks: There are deadlines particular to this type of purchase; work with an agent (such as myself) experienced in buying REO properties.


Type 6...
Foreclosure government-owned properties

Type of purchase: Sales from such government entities as the Department of Housing and Urban Development

How to buy it: The prospective buyer must contact the listing agent, who will enter an electronic bid with the agency. Only a HUD-approved agent (such as myself) can enter a bid. Most sell in 10 days; the prospective buyer has 10 days to inspect the house.

Advantages: The typical starting price for a HUD-owned home is 15 percent below market value. Only people who are planning to live in the home can bid on it for the first 10 days.

Risks: The deals go fast, so it's important to move quickly and stay flexible. It's rare for a HUD home to be for sale for more than 30 days. A missed deadline or problems with financing can kill a deal or allow another buyer to step in.


Tips for buying a foreclosure

The average person can buy a home from a financially distressed homeowner, but there are many ways to do it, and varying degrees of risk. For the best results:

Do your research. Are there liens against the property? Is the homeowner still living there? Are there obvious maintenance issues?

Be flexible. It's hard to know when opportunities will knock; on the other hand, buyers have to be ready to walk away from a deal that isn't right.

Work with an agent experienced (such as myself) in dealing with these types of homes. They know their way around these specialized deals, which can be tricky.

(partial report courtesy of A. Jares)

To find a list of short sales, foreclosures and HUD homes, contact me at luna@greatdfw.com

FORECLOSURES IN NORTH TEXAS ON THE RISE...

As foreclosures continue to rise, Banks are beginning lower the list prices on properties as reported by the Dallas Business Journal earlier this month.

(3/13/08 - DBJ)
Home foreclosure postings filed for April jumped 19 percent in the Dallas-Fort Worth area, with Denton County's figure up 40 percent from a year ago.

Eight out of 10 North Texas counties saw double-digit increases of homes listed for foreclosure auctions to be held April 1, according to Foreclosure Listing Service Inc. Denton County had the steepest increase, with 465 homes posted compared with 333 a year ago.

Homes facing foreclosure in Dallas County increased 14 percent to 1,814 homes from 1,597 last April, while the figure in Tarrant County rose 21 percent to 1,288 homes from 1,066. Collin County postings grew 17 percent to 542 homes from 465 last year.

The second highest increase was in Grayson County, with a 23 percent jump to 48 homes from 39, while Ellis County had 91 homes listed, up 20 percent from 76 last April.

The only two counties that saw declines were Parker and Kaufman counties. Parker County postings fell 15 percent to 39 homes from 46 homes, while postings for Kaufman County slipped 3 percent to 76 homes from 78.

Year-to-date foreclosures surged 21 percent for the Dallas-Forth Worth area to 17,258homes, up from 14,308 in the same period last year. The number rose 15 percent in Dallas County to 7,714 homes and was up 27 percent in Tarrant County to 5,591.

For your free list of foreclosures in Dallas, email me at luna@greatdfw.com

HILARY CLINTON & JOHN MCCAIN - WHO'S A BETTER CANDIDATE TO SAVE THE REAL ESTATE SLUMP?

This just in today from Reuters.com...Hilary Clinton & John McCain have their own idea plans to help the real estate market..Who do you think has a better plan and will actually follow-through with it?

BUY A NEW HOME UNDER MARKET VALUE!!

Forget looking for a pre-owned home under-market value...Many Homebuilders in the Dallas area are selling new construction homes for less than many of the pre-owned homes currently on the market! Channel 8 News in Dallas recently reported this news and is still on-going. For a list of new homes being sold by builders at a discounted price, contact me at luna@greatdfw.com

GET PRE-APPROVED BEFORE SEARCHING FOR YOUR NEXT HOME...

When looking to purchase a home, Sellers will most likely not review or consider your offer without a pre-approval letter from your lender. Also, as a buyer, you do not want to even begin to look at homes before you know if and what amount you are qualified for. Reason is, buyers will find their dream home but will later be disappointed realizing they do not qualify for the asking price of the home or qualify for a home loan at all due their credit rating. It's also a waste of a buyers time to spend countless hours of looking for a home without even knowing whether or not they approved for a home loan. So before you waste your own time and disappoint yourself, get pre-approved first...Now, don't get this confused with pre-qualified which is something you can do yourself. Pre-qualify is simply taking a general look at your income and expenses and plugging them into a debt-to-ratio formula. Pre-Approval on the other hand is when a mortgage lender reviews both your credit report/score and income to determined if and what loan you qualify for. If pre-approved, the lender will tell you which loan programs you qualify for and what amount. They will also discuss the interest rates they offer for your loan type. (loan types to be describe in a later blog). Once you're pre-approved you can then go shopping for a home with confidence about your buying power. (note, this still isn't a guarantee that the lender will approve the loan, since the home must also meet certain requirements as well as your credit should not have any major changes from the day you are pre-approved to the day you close on your home, so don't plan on major purchases or fall behind on current debts during your home search process). The pre-approval process can be done in a day, but you must be able to provide some financial information such as you recent pay stubs, banks statements and credit report which the lender usually pulls for you. So get pre-approved and call me so we can start looking for your next home! If you need help in locating a lender, email me and I will send you a list of established lenders to help you get started.