Economic Game Plan Outlined by Albuquerque NM Mayor

A record 600 people packed the Albuquerque Marriott at I-40 and Louisiana yesterday to hear Albuquerque’s new mayor, Richard Barry, address the annual National Association of Industrial and Office Properties (NAIOP) luncheon.

Mayor Barry outlined his game plan for putting the city on a fast track for economic recovery. He said he plans to run the city more like a business and described three principles he would follow:

1. Albuquerque First
   The mayor plans to direct city departments to buy local in an effort to keep jobs in the area and help small businesses get a bigger piece of the pie of business contracts.
2. Albuquerque Easy
   The intention of Albuquerque Easy is to direct effort toward making it easier to do business locally. To that end, the city of Albuquerque will speed up the permit process by instituting electronic filing , create a business resource center in City Hall, and develop a more customer/ business friendly environment.
3. Albuquerque Recruits
   Albuquerque Recruits relates to bringing more people to the region, encouraging business growth, and attracting new jobs and investments. This principle also relates to targeting businesses that are a good fit for the Greater Albuquerque region. The mayor made special reference to the solar and film industries.

The mayor featured three small businesses with video presentations during his speech –Valliant Printing, minority, woman-owned company by Keiko Johnson; Steve Pasternoster, a restaurateur in the Nob Hill Area, and Schott Solar at Mesa del Sol.

The mayor made it clear that in speaking of Albuquerque, he meant the entire Greater Albuquerque Area that included Rio Rancho and Los Lunas. He specified and was applauded for saying that whatever opportunities for business arose, he hoped one area or another of the region  would get it because it was in fact one region.

 

Technorati Tags: Albuquerque Economy,Albuquerque NM Events,Mayor Berry,Albuquerque Mayor,NAIOP,Albuquerque New Mexico Business

Tax Credit Expiring – Will HAMP Fill Gap?

First-time and repeat homebuyers profited from the tax credit offered as part of the Federal Recovery and Reinvestment Act initiatives designed to help jump start the economy. That package helped sustain the residential real estate market through the past two years and has been particularly helpful to first-time home buyers, many of whom felt left out during the protracted increases in home prices up to 2007.

The first homebuyer tax credit extended initially only to first-time homebuyers, expired in 2009 and was extended and expanded to include some repeat home buyers. As we approach the expiration of the extended/expanded period, not only industry insiders but savvy consumers, doubting the feasibility of another extension have been wondering what would be the next best thing to do to support a market still in need of crutches.

The evidence all around us, even in New Mexico that seemingly weathered the downturn better than most other areas, according to national trend reports. Mortgage payments for many, are far higher than the value of their homes. To alleviate the burden, consumers approach lending institutions seeking restructuring or modification of their loans only to receive no response or responses that make their situation more arduous. In cases where restructuring or modification becomes even more crucial because homeowner are facing reduction in earnings through job loss or other setbacks, unable to reach agreement with lenders for restructuring or modification, many simply choose to walk away to homelessness or rental at a price more affordable than mortgage. Still others try to sell but are unable to sell at a price high enough to pay off the mortgage balance. One alternative is to seek agreement for a short sale (the lender agrees to accept an amount short of what is actually owed) currently a long process with uncertain outcome.

If and when the short sale is executed, the beleaguered homeowner may face one of two additional challenges. They may be required to sign a promissory note for the difference between the amount owed and the amount of the sale or a tax liability for the amount forgiven by the lender.

Given this scenario many, it is welcome news that President Obama has chosen to tweak the previously agreed upon Home Affordable Assistance Program (HAMP).

The revised FHA- HAMP program in providing relief to homebuyers where it is needed most, will fill the gap that the expiration of the tax credit will leave and continue to support an industry that is still fragile and in need of stimulus.

Technorati Tags: first-time homebuyers,new mexico real estate,HAMP,residential real estate,homebuyer tax credit,President Obama,home affordable modification program

Homebuyer Tax Credit Expiring - Updated HAMP Just In Time

First-time and repeat homebuyers profited from the tax credit offered as part of the Federal Recovery and Reinvestment Act initiative designed to help jumpstart the economy. That package helped sustain the residential real estate market through 2008 to date. It has been particularly helpful to first-time home buyers, many of whom felt left out during the protracted increases home prices up to 2007 (at least in our neck of the woods - New Mexico).

The initaial  tax credit for first-time homebuyers expired in 2009 and was extended and expanded to include repeat home buyers who met certain criteria. As we approach the expiration of the extended/expanded period, not only industry insiders but savvy consumers have been doubting the feasibility of another extension. The million-dollar question was what next could be done to help a still-ailing housing market.
The evidence of a market still in ill health is all around us, even in New Mexico, a state that seemingly weathered the downturn better than most others, according to national trend reports.

The evidence, from talking with clients, is that mortgage payments for many are sometimes significantly higher than the value of their homes. To alleviate the burden, some approach lending institutions to seek restructuring or modification of their loans only to receive no response or responses that in their perception, make their situation more difficult. In cases, these homeowner are facing reduction in earnings because of job loss or other financial setbacks.  Unable to reach agreement with lenders for restructuring or modification, many simply choose to walk away to homelessness or rental at rates more affordable than their mortgage. 

Others try to sell but are unable to sell at a price high enough to pay off the mortgage balance and do not have the resources to pay the difference. A portion of this latter  group seek agreement for a short sale (the lender agrees to accept an amount short of what is actually owed) a long process with uncertain outcome. If and when the short sale is executed, beleaguered homeowners may face additional challenges. They may be required to sign a promissory note for the difference between the amount owed and the amount of the sale or a tax liability for the amount forgiven by the lender.

The long and short of the situation is that vacant homes with delinquent mortgages persist. Many homes are occupied with residents who are barely managing to pay mortgages, may be one month away from defaulting or are several months behind, waiting for the axe to fall. That is why the news of President Obama's latest initiative one month before the expiration of the homebuyer tax credit is welcome news. The President has chosen to tweak the previously agreed upon Home Affordable Assistance Program (HAMP) with

the inclusion of considerations for principal reduction. The revised FHA- HAMP program is expected to provide relief for homebuyers where it is needed most. It is also expected to fill the assistance gap the expiration of the tax credit will leave and continue support for the residential real estate industry whose recovery has serious implications for overall economic well being. - Eloise Gift, REALTOR, CRS, GRI, e-PRO

Saturday Mornings

Some sleep in on Saturday mornings.  Others escort children to swim meets and other sports events. Saturday mornings are great times for a sumptuous brunch. As a REALTOR, I present seminars, show houses or meet with clients for whom Saturday morning is the only available time for real estate matters. As a REALTOR, Saturday morning is a continuation of the week, not the beginning of the weekend.

Be Safe as you Spring Forward

Sunday, March 14 at 2:00 a.m. we revert to standard time. We must all remember to move our clocks forward 1 hour – "spring forward "- so as not to miss our standing Sunday appointments and fall out of step with the rhythm of our lives.  In addition, to help  keep us safe in our homes, the University of Oklahoma Police Department recommends tasks we might consider carrying out in conjunction with adjusting our clocks.

Coinciding with the time change, the department recommends:

• Checking and replace batteries in smoke and carbon monoxide (CO) alarms
• Preparing disaster supply kit for your house (water, food flashlights, batteries, blankets). If kit is already prepared, do semi-annual check ing of contents including testing /replacing flashlight batteries).
• Preparing or checking car-emergency kit and include a separate “Cold Gear” bag with items necessary for one to stay comfortable in case of emergency in cold weather.
• Checking home and outbuilding storage areas for hazardous materials (HAZMATS). Discard safely all unused and outdated. (In Bernalillo County, call 1 877 643-1956 or344-3655)
• Checkingand discarding (safely) all expired medications.

The same checks should be carried out again in the fall when we switch to daylight saving time again.

Finally, the United States Consumer Protection Safety Commission suggests:

• Replacing smoke alarms every ten years. 
• Replacing carbon monoxide alarms every five years.

Have a safe and happy spring!

March Calendar

March is a busy month.

•  If St. Patrick's Day is important to you, get ready for March 17.
• Spring starts March 21
• Change your clocks, Sunday, March 14 at 2:00 a.m. to revert to standard time.

On the day we change our clicks to spring forward, it is recommended that we
Check smoke and carbon monoxide alarms.
Prepare disaster supply kit for our homes (water, food flashlights, batteries, blankets). If kit is already prepared, do semi-annual check of contents including testing /replacing flashlight batteries

Prepare or check car-emergency kit and include a separate “Cold Gear” bag with items necessary for one to stay comfortable in case of emergency in cold weathe

Check home and outbuilding storage areas for hazardous materials (HAZMATS). Discard safely all that are unused and outdated.

Check and discard (safely) all expired medications
Very Important: The United States consumer Protection Safety Commission suggests
The replacement of smoke alarms every ten years
The replacement of carbon monoxide (CO) alarms every five years.

 

University of Oklahoma Police Department Notebook: Police Department Notebook.