We spent the evening with a few good friends last night reflecting on 2009 and all that we looked forward to in 2010.  A thought provoking question was asked that made me wonder what your answer would be.

As you enter 2010, what would you absolutely NOT resolve to change in your life?  

We hear so much about what we will change in the New Year:  This will be the year I stop smoking, lose weight or get to the gym more often.  All of these are the typical “I could do it any time of the year” resolutions, yet somehow we find it easier to commit during this particular time than any other.  Let’s face it though, most of us make New Years resolutions we rarely keep because they’re stressful, produce an overwhelming amount of guilt when we don’t follow through and eventually lead to disappointment. 

Why then should we start our New Year reflecting on what we dislike within in our lives?  Why not instead reflect on the things that we loved about last year?  Those special people, memories and experiences that we want more of in our lives and simply will not part with in 2010.

Granted, my big exclamation last night that “I will NOT give up my evening bowl of popcorn” may not be the most profound statement ever, but it is a resolution I plan on keeping!  Whether it’s silly or serious; drawing into your life those things that make you happy will create resolutions you can keep year after year.

So what is it for you?  What will you commit to keeping, getting or having more of in your life???

I’ve thought a lot about what 2010 will hold for me.  This has a great deal to do with the fact that 2010 is a brand new year for me in so many ways.  A new company, new career, new energy, new habits and the chance to re-invent myself within an ever-changing industry.    

It’s a new season in my life and the road I’m set to travel is very exciting.  Especially after a year that nearly brought me to my knees.  This has been without a doubt the most humbling year of my life.  It’s also one that’s left me wanting more in every way possible.

Settling & why it Tears out Your Soul –

I settled in my career –   I can now look back and realize that I’d slowly walked away from the responsibilities that filled me with passion and hope as I pursued them.  Like many of you, I followed other avenues, feeling that the path I was on was one that wouldn’t always captivate me. 

So I moved in a new direction, and like the shiny ornament on the Christmas tree, I was drawn to it.  It took me 2 years of rebuilding, restructuring and renegotiating “non-negotiables” with myself to realize that I’d walked away from the very reason I’d entered this industry…to serve others.  Instead I found myself acting as a manager/glorified babysitter and fighting fires all day long.  The spark that had ignited in me the desire to pursue a career in the mortgage industry so many years ago was fading.  I felt lost and helpless to change the situation I was in.  I believed I was doomed to repeat my mistakes and saw no way out.  Until one day 3 weeks ago…

I settled in my marriage – We have two boys, one a sophomore in college and the other heading off to college.  It’s been a year filled with student loan applications, orientations, test taking and college visits.  I became so engrossed in the process and fact that this was my “last year” with my son (yes we mom’s are quite dramatic about this moment in our child’s life) that I couldn’t see how far I was pulling away from my husband.  I was miserable at work, mourning the loss of my son (there I go again with the drama) and trying desperately to throw myself further into my failing career so I wouldn’t’ notice all the other holes in my life.  I knew I was dangerously close to losing everything I had…husband, family, career but felt helpless to change.  Until one day 3 weeks ago…

I settled financially – I had my family teetering on the verge of bankruptcy all because I believed in my vision.  Problem was – nobody else, including my employer did.

Then three weeks ago a light bulb went off in my head.  I’d been contemplating a life changing decision.  A leap of faith that would take not just mine, but the lives of those I love in a new direction.   If you can’t tell by now, I’m passionate about living the “life you’ve always dreamed of” and settling for nothing less.  So imagine my dismay to realize that that’s exactly what I’ve been doing the last several years?  I’ve settled for the (gasp) status quo.  I’d settled into a completely miserable existence, but one I felt I controlled and understood.  Up until that day three weeks ago.

I was leaving for a conference that I was less than enthused about. In fact, I was traveling to this conference as my final fact finding mission.  I needed to know – Was this life the one I wanted to carry into next year or was it the moment of truth?  Would I face my fear and make a change or would I stay where I was and attempt to climb out of the rut I’d allowed myself to fall into?  As I contemplated these thoughts, I found myself stuck on the tarmac for over an hour.  Now watch out because here come all of the analogies.  We were stuck because the engine, our sole support of power, was dead.  So what happened next?  They brought a mechanic in to “jump start” the lifeless engine.  After an hour of attempting to breathe life back into our plane, we were finally cleared to leave.  However, we backed out only to find another engine die and the possibility of flying completely halted.  The only way back to the gate was to be pushed.  We then proceeded to wait another 30 minutes while they determined if the plane could be repaired or whether we would deplane and find a newer, better, more capable plane that would actually take flight.  Hmmm…sense any similarities to the life I’d settled for above?

Now let me say loud and clear, I don’t believe in chance.  Chance is for those that don’t have the guts to make a decision but instead wait for the wind to blow them in the “right” direction.  I know you’ll find this ironic, but while I don’t believe in chance, I’m a huge believer in signs.  I’m always on the lookout for them and know that if I’m open and willing to change, the decision will become clear.

My decision was crystal clear.  Change was in the air and it wasn’t a simple “if I change this one thing in my life” kinda change.  It was dramatic and could only bring remarkable results.  It’s interesting to me how we interpret these signs and what within us allows us to make that final decision.  Is it a deep desire to know what that next step is or is it a childlike curiosity of the unknown?  I believe life offers us both sensations.  The childlike ability to “live in the moment” and feel all that’s around us as well as the capacity to stretch ourselves into territory yet un-traveled.

I’ve always interpreted Robert Frost’s poem “The Road Not Taken” to say the moment when we make the scary; possibly unpopular decision to move in a new direction is the moment of truth in all of our lives.  It’s that space in time when nothing else matters except one thing; taking the path that leads to our happiness: the road “not yet” taken.

My last request……………..

Please take a moment to walk through a little exercise I call – “I WILL!!” This has empowered me to take back my life and start fresh knowing I will never settle again.  Commit to making 2010 the “Year you WILL ____________ (fill in the blank)” as many times and for as many sheets of paper that your hand will allow for.

Here are a few of mine:

• I WILL:  Never settle for second best
• I WILL:  Put my family before my career
• I WILL:  Embrace the future with joy and an open heart
• I WILL:  Envision my life full of possibility
• I WILL:  See the doors of opportunity opening around me and welcome them with open arms
• I WILL:  Live a life full of abundance
• I WILL:  Attract positive-minded people to me
• I WILL:  Make powerful and enjoyable business relationships

What would yours be? I’d love to hear your answers and how you’re making it an outstanding 2010!

It’s the most wonderful time of the year – yes, but for many it can also be the most stressful time of the year as well.

With this in mind, here are a few simple tips for stress-proofing your holiday season.

Be generous….to yourself – The holidays are a time of giving and gratitude, but don’t forget about yourself and your health. Stress has been proven to be bad for your heart, heart rate, blood pressure and can make certain chronic diseases, like arthritis and diabetes, even worse. So don’t let shopping be your only exercise this holiday season. Schedule some time for yourself once a week at the gym. Splurge on a yoga class or two, or just allow yourself time for a quiet walk or jog around the block. After all, the best gift you can give your family is a happier, healthier you!

Plan for success….not perfection – We’ve all heard about “the best laid plans of mice and men,” but nowhere in that famous poem is perfection mentioned. This holiday season, yes, plan ahead and avoid stressful surprises that can pop up and ruin your events. But, at the same time, expect some surprises, and give yourself permission to let some things slide.  

Give…and receive  –  A great way to cut down on stress is to share the load. Volunteering to help others will help you keep your mind off your responsibilities and remind yourself of how good it feels to give. But remember, this works both ways. Allow others that same opportunity. Let them help you when you need it.  You just might find that these “opportunities” create the best, most enduring holiday memories.

It’s official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?

The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions

Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.  This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?

For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405.

Can you claim the tax credit in advance of purchasing a property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?

Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home.  For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?

Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?

Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?

No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

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Fannie Mae announced a new program today that will allow homeowners facing foreclosure to remain in their homes.  The “Deed for Lease” program would require homeowners to turn over their home to their current lender but allow them to remain in the home by signing a lease.

Jay Ryan, Vice President of Fannie Mae said “The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications. This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The program was created for homeowners that have been unable to refinance or modify their current loan due to qualifying issues such as lack of income, assets or credit. Homeowners also must reside in the home as their primary residence in order to qualify.

Homeowners will transfer their homes to their lender under a Deed in Lieu of Foreclosure and then have the option to rent the home back at a rate determined by their market. The hope is to help those that might have gone into foreclosure avoid the stress associated with the process and keep them in the home.

I was recently asked the question:  What happens if banks fail the stress test?  We all see the need for increased transparency, but if $900 billion or so really resides with the top 19 banks and was not measured during their stress tests . . . who really is healthy and who is not and does it matter?

Here’s my answer:  This is a topic that’s getting more and more press as the fear that government will be running our banks spreads. Especially concerning to me is the fact that not only will government be running the banks but they’ll have the power to fire the employees they find “gluttonous.” Politicians running our banks only means BIGGER problems to me.

Another scary piece of this is that the worst-case scenario spelled out in February (10.3% unemployment and economic contraction of 3.3%) is pretty much spot on to the world we’re currently living in. I also know the stress tests have left us with a very scary probability. What if no one is safe? And as we’re seeing with the “too big to fail” banks that are falling around us, no one is immune.

My gut feel though? Not much will change beyond what we’ve already seen happen. i.e. banks close = tightening guidelines = less money to lend = shrinking number of buyers in the market = a struggling economy that doesn’t have the housing market to depend on to pull it out.

Our industry has a lot more tough times coming as of January 1st which will only shrink our competition down even further. I’m good with that. I’m also comfortable with the powers that be at our bank. They’re making smart choices instead of sexy ones. It was the shiny new toys that got a lot of the big boys into trouble. (remember option arms??)

My overall outlook is positive. I don’t know how much worse it will get before it gets better, but I do know we’re still standing. That means a hell of a lot when so many that were thought “impenetrable” have fallen around us.

Do you agree or disagree?  What’s the worst outcome in your mind?  How could the banks have avoided the failures we’ve seen over the last several years?  What can you do to ensure you are “safe” within this industry?

EXCITING NEWS!

Congress passed a congressional resolution on Thursday extending Fannie Mae, Freddie Mac and FHA loan limits through 2010.

Current loan limits were set to expire at the end of 2009. This extension is relief to sellers and buyers that might not have been able to purchase through FHA financing if this rush to extend hadn’t taken place.

FHA Loans now account for more than 36% of all loan applications; hitting their peak in June.  That makes this the most substantial year for mortgages endorsed by FHA in its 75 years.

The current conforming loan limits are $417,000 in most areas of the U.S. and $729,750 for high-cost areas.

There are more BIG changes coming for FHA loans. The one that will significantly impact current FHA borrowers has to do with streamline refinances.

Believe it or not, up until now there was still a way to help homeowners refinance quickly and easily. Even in a market with tightening guidelines and falling home prices, this refinance option allowed borrowers a simple way to reduce their interest rate and lower their monthly mortgage payment.

If you’re not familiar with an FHA streamline loan, the current benefits include:

•No verification of Income
• No verification of Assets
• And often no appraisal is needed

All of this will change on November 17, 2009.

In the September 18, 2009  FHA Mortgagee Letter, FHA outlined the amended guidelines for streamline refinances.

• Borrower must have made at least 6 mortgage payments before refinance is allowed
• Lender must verify that borrower is employed at the time of the application
• Borrower must provide proof of assets needed to close
• Lender must prove “Net Tangible Benefit” to the borrower through 1 of 3 ways:
• Reduction in Total Mortgage Payment: The new total mortgage payment must be 5% lower than the current mortgage payment being refinanced. Example: Current mortgage payment is  $895; the new mortgage payment must be $850 or less.
• Reduction in Term – Example of benefit: Refinance from a 30 to 15 year ammortization
• Refinance from an Adjustable Rate (ARM) to a Fixed Rate

It’s evident that these changes will have a major impact on current FHA borrowers to qualify.  Do you currently have an FHA loan and if so, could you benefit from a streamline refinance?  It’s worth looking into your options now before this program passes you by. 

If you have further questions on how a streamline refinance works or how you might qualify, contact your current lender or email me here.

Every woman wants to believe that she can “have it all.” We trust that happiness at home and within our profession is possible and go to extraordinary pains ensuring we hold each in balance. Is it truly possible to “have it all” and if so, at what price? And what exactly does it mean to “have it all?”

In “Find Your Strongest Life – What the Happiest Women Do Differently,” Marcus Buckingham answers those questions. His conclusion is that “having it all” does come at a cost and the price tag is one that leaves most women feeling anxious, over-worked and generally less fulfilled.

Throughout his years of research at the Gallup Organization, Marcus Buckingham found that while women have been given more opportunities over the last several decades (better education, higher paying jobs) they did not translate into women feeling happier. In fact, the research found that the more opportunities women had, the more frantic their lives became and therefore the more unhappy they found themselves.

As a woman who has spent my life “wanting it all,” I was drawn to this book for a highly specific purpose. I was feeling drained; tired of keeping all those daily balls I juggled up in the air and eager to see how I could feel satisfied in my personal & professional life without carrying the guilt associated with the notion that I was not living up to my full potential. There’s nothing worse than a woman’s guilt!

Here are my key take-aways from this book:

As a strengths strategist, Marcus Buckingham has spent years helping others recognize their unique talents. If you have not read his previous books, “Now Discover Your Strengths” or “Go Put Your Strengths to Work” than you are not aware of the years he has spent dedicated to helping people find their distinctive gifts and then making the most of them. This book takes his strengths based research and puts a feminine spin on it. His “Happiness By Year” statistics were particualrly appealing as I realized that just because we’ve “come a long way baby” does not mean we’re more content. It simply means we’ve added more to our lives, complicating our days and leaving us empty and less fulfilled.

Finding our purpose is key to manifesting our strongest life. “Having it all doesn’t mean having everything, all at once, all the time. “Having it all” means taking yourself seriously. It means knowing yourself well enough to find your purpose in life.” This was a defining moment in the book for me. I had to sit back and truly take all of that in. I thought, “You mean I don’t have to push myself into exhaustion to have “it all” right now?? WOW – why had I never given myself that grace before? It seemed so simple to believe that “having it all” means having all that I need right now. Not having everything all at once to the point of over load.

Juggling all of life’s “balls” keeps those we love at arms length rather than closer as we’d hoped. “A strong life is the opposite of juggling. Juggling requires you to keep everything at bay, up in the air, away from you. The secret to living a strong life lies in knowing how to draw a few things in toward you.” In order for us to find happiness, we must identify what’s most important and know how to make the most of those moments.

Everything you need to know about living the life you want to lead is staring you straight in the face. “The secret to living a strong life is right in front of you, calling to you every day. It can be found in your emotional reaction to specific moments in your life.” Make the most of every moment and never take one for granted. It’s in the living of our lives that we find those moments that mean the most to us. They energize us and move us towards our authentic self and the strong life life we should be living.

Take the “Strong Life Test” and discover the Role You Were Born To Play. “The purpose of the Strong Life Test is different. Rather than splitting all the different aspects of you, the Strong Life test puts you back together. It measures you against nine life roles and reveals which rold is our Lead Role.” I was excited to take the test and eager to read through my results. “Teacher” is my Lead Role and a little surprising to me. I can’t say I have a lot of patience and find it difficult to explain anything more than once. However, I do revel in the moments where the “student” finally has that “ah-ha” moment and is able to overcome a challenge.

In closing, I would pass along that this book had a profound impact on my life. I suggest that any woman seeking “more” from her life read this immediately. As Henry David Thoreau so aptly put it – “Go confidently in the direction of your dreams. Live the life you imagined.”

I don’t know about you, but I’m looking forward to a life less cluttered and holding onto those moments that mean the most in my coming days.

Credit remediation is a subject consumers often face with fear and trepidation, and for good reason. With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Borrowers with less-than-perfect -credit often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve your credit scores and obtain a loan for the home you really want.

The first step in the process is making sure that you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually. There are three major credit bureaus: Equifax, Experian, and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.annualcreditreport.com)

It’s also important to know just what a good credit score is. Most conventional (Fannie/Freddit) loans require a 680, although this number may differ slightly among lenders. Don’t despair if you come up shy, there is always room for improvement. Increasing your score just 5 points can save a significant amount of money. For example, if your score is 698 and you increase it to 703, then you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate.

While credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:

• Evenly distribute your credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket.

• Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debt-to-available credit. The bottom line is don’t close those old accounts!

• Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame.

Remember, credit scores don’t change overnight. Improving them requires time and diligent effort on your part, so it’s a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing.

If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Diligently search through them and educate yourself to ensure that you don’t sustain any self-inflicted wounds. A good place to start would be the Federal Trade Commission’s website, which contains a wealth of helpful literature.

If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the assistance of a professional credit repair company. Before you do, be sure to familiarize yourself with the FTC’s regulations on credit repair. With over 1100 credit repair companies to choose from, it’s important to be certain you are dealing with a reputable firm. Examine the FTC’s information on fraudulent practices to avoid falling prey to credit repair scams.

Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams.

Additional Resources:

To order your free credit report, visit: Annual Credit Report

To read the Fair Credit Reporting Act, read: Fair Credit Reporting Act

Click her for the Federal Trade Commission’s Information on Consumer Credit