As more home owners have fallen behind on their mortgage payments, foreclosures and short sales have become more of a common occurrence in the Greater Rochester region and across the nation. A short sale is a sale of a property where the sale price falls short of the balance owned on the loan. The lender must agree to and accept less than the total amount due. In some instances, a short sale may be a better alternative to foreclosure because it helps avoid hefty fees for the lender and has less of a dramatic impact on a borrower’s credit rating.

While there are loan modification and other programs that can assist homeowners, not everyone will qualify. For many who are at risk of losing their home through foreclosure, a new program from the United States Treasury Department may help.

In February 2009, the Obama Administration introduced the “Making Home Affordable Program.” The plan is intended to stabilize the housing market and help struggling homeowners remain in their homes. One option is to modify mortgages to make them more affordable through the Home Affordable Modification Program (HAMP). While many homeowners have received help through HAMP, far too many will not be able to keep their home even with a loan modification. For those homeowners, the Treasury Department has established a new short sales program called the Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is designed to streamline short sales by providing a uniform process, standard forms, and incentives for families and their mortgage servicers to complete the process. It offers homeowners who sell their homes under HAFA, $3,000 to help cover their moving costs.

On June 1, 2010, Fannie Mae and Freddie Mac released guidelines for implementing the HAFA program. Servicers were required to implement these policies no later than August 1, 2010. While largely consistent with the HAFA guidelines for non-GSE mortgages, Fannie and Freddie have each made some important differences. To be eligible under the non-GSE HAFA program, the borrower must be delinquent or default must be reasonably foreseeable. Under Freddie’s requirements, a borrower must be more than 60 days delinquent and have cash reserves less than the greater of $5,000, or three times the current monthly mortgage payment. Fannie allows borrowers to be at imminent risk of default. Fannie also prohibits a borrower from participating in HAFA, if the borrower has the ability to continue making the mortgage payments but chooses not to do so (sometimes called strategic default); has substantial unencumbered assets or significant cash reserves equal to or exceeding three times the borrower’s total monthly mortgage payment or $5,000, whichever is greater; or has high surplus income. Fannie and Freddie allow for servicer incentives of $2,200 for a short sale and $1,500 for a deed-in-lieu of foreclosure (DIL). This is in contrast to the $1,500 servicer incentive for both a short sale and a DIL for non-GSE mortgages. For both Fannie and Freddie, each subordinate lien holder in order of priority may be paid no more than 6% of the unpaid principal balance of its loan, until the $6,000 cap is attained. This policy remains unchanged from the non-GSE HAFA program. Consistent with the non-GSE HAFA program, Fannie and Freddie guidelines do not permit subordinate lien holders to require contributions from the real estate agent or borrower as a condition for releasing its lien and releasing the borrower from personal liability. 2

The Greater Rochester Association of REALTORS® recommends that anyone who is at risk of foreclosure or considering a short sale to first seek the advice of a real estate attorney or financial advisor who can discuss various options and alternatives to ensure that their best interests are protected.

*Some of the information contained in this article was provided by the National Association of REALTORS®

Although nationally builder confidence is at a 12 month low, Home Builders in the Rochester/Finger Lakes area are much more optimistic.

“Real estate and building is local.” said Craig Antonelli, President of Antonelli Construction, and 2010 Chairman of the Rochester Home Builders’ Association. ” Our job market is steady and we have a strong community that works together. We have seen the worst of the slow down in the home building industry and we are now moving forward again.” Antonelli added.

The Rochester Home Builders’ Association reported an increase in building permits the first half of 2010. Increases in Monroe, Ontario and Wayne County were over 20 %.

“Certain markets continue to build.” said Rick Herman, Chief Executive Officer of the Rochester Home Builders’ Association. “There was a tremendous amount of market movement in the first half of the year due to the tax credit. That helped pre-existing homes which then helped the new home market as well.” Herman said.

“Most builders agree that 2010 will be a slow re-building year and that in 2011 we will see more normal numbers.” said Antonelli.

The REALTORS® Charitable Foundation (RCF), the philanthropic arm of the Greater Rochester Association of REALTORS® (GRAR), announced its most recent grant award of $5,000 to the Bishop Sheen Ecumenical Housing Foundation, Inc. (Sheen Housing). The money will be used specifically to fund the Emergency Home Repair program, which helps lower income families, seniors, and persons living with disabilities, in order to achieve safe, decent housing.

Representatives from both the RCF and Sheen Housing attended a check presentation ceremony at the offices of the Greater Rochester Association of REALTORS® on June 8.

“We are pleased to support this very worthy program, which provides vital community services to people in need,” stated Cindy B-Rosato, chair of the RCF board of directors.

Sheen Housing Board President Patrick Cusato expressed his appreciation of the award on behalf of the organization. “Given today’s tough economic situation, lower income families are barely keeping their heads above water. They do not have the additional resources to make home repairs and still pay the mortgage, utilities, food, and other household costs.”

“I am particularly proud that this gift will assist so many by creating thriving, sustainable neighborhoods, jobs for local contractors, community revitalization support, and provide better housing in a stronger community,” added Kevin LoCicero, Bishop Sheen board of directors vice president.

Since its inception in 2001, the RCF has awarded over $430,000 in grants to 35 local non-profit agencies. The organization receives its support from area REALTORS®, the Greater Rochester Association of REALTORS®, proceeds received from the annual RCF Golf Classic held in July, and various other fundraisers.

To learn more about the REALTORS® Charitable Foundation and how you can support its efforts, visit www.rfoundation.org.

Real estate statistics released by the Genesee Region Real Estate Information Services (GENRIS), the information subsidiary of the Greater Rochester Association of REALTORS® (GRAR) revealed an impressive second quarter.

GRAR officials reported a 43% increase in sales when compared to second quarter 2009, with a total of 3,512 homes sold. In addition, the overall median sale price of $120,000 reflected a 2% percent increase compared to last year. The increase in purchases was a result of home buyers who still had time to take advantage of the $8,000 First-time Home Buyers Tax Credit and the $6,500 Tax Credit for current home owners who purchased a new or existing home. The tax credit expired on April 30, 2010. Those who qualified for the tax credit had until June 30 to close on their purchase. Pending sales were down, as expected, as people were rushing to close on their homes before the closing deadline. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Recently, both houses of Congress passed a bill that extended the deadline for home buyers to close on their purchases and still claim the tax credit. President Obama signed the bill into law on July 2. Under the measure, buyers now have until September 30, 2010 to close on homes that went into contract by April 30. 2010.

“The tax credit was a critical factor in generating home sales and maintaining the momentum of the real estate market into the second quarter,” stated Carolyn Stiffler, GRAR board president. “The program definitely had a positive impact on our local market and was an enormous benefit to homeowners.”

Stiffler stated that she anticipates sales to be steady and brisk through the third quarter.

“Although the tax credit incentive has expired, this is still a great time to buy a home,” remarked Stiffler. Mortgage rates are still at an all-time low and this is a wonderful opportunity for people to take advantage of our very affordable and stable real estate market.”

There were some impressive sales results in several towns within Monroe County. Notable increases were realized in Brighton, Pittsford, Henrietta, Webster, Perinton, Ogden, Parma, and Sweden/Brockport.

GRAR will continue to support the local residential real estate industry through its TIME2BUY marketing campaign, which focuses on the benefits of owning a home and using the services of a REALTOR® when buying and selling a home.

More than 400 real estate professionals are expected to take part in the 2010 REALTORS® Charitable Foundation (RCF) Golf Classic, to be held on July 12, at Shadow Pines, Shadow Lake, and Greystone Golf Clubs.

Participants will have an opportunity to take a day off from what is normally a very busy time of the year for REALTORS® and other professions associated with the real estate industry, while raising money for a very worthy cause. The annual event is open to the general public and is hosted by the Greater Rochester Association of REALTORS® (GRAR), Gateway Funding, and WROC TV 8/Fox Rochester.

The REALTORS® Charitable Foundation serves as the philanthropic arm of the Greater Rochester Association of REALTORS®, an organization that provides resources, education, and promotes professionalism for its more than 3,000 members. RCF supports charitable organizations that help to increase affordable home ownership opportunities, build healthy neighborhoods, or mitigate critical housing needs. Since its inception in 2001, the Foundation has awarded more than $430,000 in grants to 35 local charitable organizations. It receives its support from area REALTORS®, GRAR, and various other fundraisers. Last year’s golf tournament netted more than $23,000.

“This is a good example of how REALTORS® are giving back to the community,” said Cindy B-Rosato, an area REALTOR® and chair of the RCF Board of Directors. “As real estate professionals, we recognize that a vital part of aspect of doing business is taking responsibility for helping to preserve and enhance the quality of life in our community.”

News 8 Now at Sunrise and Noon Anchor Katrina Irwin and well-known local personality Dee Alexander will co-emcee the dinner portion of the event.

For sponsorship and registration information, visit http://www.grar.org/Events.html, or contact Diane Rosen, GRAR director of events at 341-2122, or drosen@grar.net.

By Staff Writer

When you turn into the Watersong subdivision off Five Mile Line Road, you immediately notice that there are some nice homes that line the street. As you continue down the winding road, you see the five featured models under construction. Custom homes with everything state-of-the-art.

The 2010 Homearama event is officially under construction and crews are working diligently to get these homes finished for the grand opening. This year’s event is scheduled for August 14th – 22nd in Penfield at Watersong.

Homearama is a product of the Rochester Home Builders Association and has been running for over 30 years in this area. The original intent of Homearama was to show people practical applications and products available to them in new homes, like the newest advancements in siding, roofing and architectural changes. As the times changes, Homearama has adapted to lifestyle changes.

Rick Herman, Executive Vice President of the RHBA is excited about this year’s event. “People come to see the newest trends in home building and home decorating. In addition to the advancements on the inside, we have a number of homes developing the outside with a big yards with patios, pools and extensive landscaping.” The idea of staycations are prevalent in these models.

This year’s event is a little different from year’s past in that Homearama 2010 will be only 9 days compared to 3 weeks from last year. “We’re downscaling from previous years,” Herman said, “Attendance records show that a shorter event make for better participation. We have a variety of activities and events for people to participate and enjoy each day like bands, cooking classes, a classic car show and clowns for the kids.”

The Watersong subdivision is a product of Antetomaso Homes and is currently developing phase III. “There were a lot of reasons why we chose Watersong for this years Homearama,” said Herman, “Penfield is one of the hotter towns as far as new home construction and price point. Plus it is easily accessible from Rt 104 and offers a lot of parking for patrons.”  Antetomaso Homes is proud to host Homearama 2010. “we are happy to show off our community to the general public,” Said Ralph Antetomaso, “Watersong was designed with many quality features in a new community including sidewalks on both side of the street, street lights and open space.”

Re/Max Plus broker, John Antetomaso “We are thrilled to be hosting Homearama this year. It allows us to show the vision we have planned for the Watersong community and the neighbors are thrilled to be part of it.”

Ticket prices have not been announced yet for the event, but will be available at the door. The Rochester Home Builders Association will have coupons and information by the end of June. Visit their website at rochesterhomebuilders.com. You can also find the featured builders, model floor plans, vendors, schedule of events and of course discounts.

The member web site of the Greater Rochester Association of REALTORS® (GRAR) was recently chosen as one of three “Best of the Web” in the 2010 Outstanding REALTOR® Association Web site Contest. A judging panel comprised of the editorial board and staff of REALTOR® AE Magazine determined that www.grar.org stood out for its focus on delivering outstanding on-line member services. The decision of the judges was based on the conclusion that the site represented the “innovation, commitment, and excellence for which all associations strive.” The other two associations recognized were the Chicago Association of REALTORS® and the Florida Association of REALTORS®. The contest drew nearly 50 entries from real estate associations across the country.

GRAR launched its newly-renovated member site in January 2010, which was designed by Site Brand Builder.com, a Rochester-based company. The interactive site features pages that provide education course descriptions, events and news, government relations information, and a Multiple Listing Service (MLS) section as a source for real estate forms and tech support. In addition, there is a member resources and support section that offers marketing tools, business practice updates, and industry-related links. Also available is a calendar of events, news gallery, and information on how to begin a career in real estate.

“When we set out to rebuild our online presence in 2009, our goal was to focus on the needs of our members,” stated Ryan Tucholski, CEO for the Greater Rochester Association of REALTORS®. “Information provided on the site is only presented when it’s relevant, accurate, and requested by our membership.”

Among the judges’ highly rated features of the site are the prominent Google search, the updated news section, and the depth of information in the members-only section. Also noted was the members’ use of the site as a portal to their dashboard on the public-facing MLS Web site, where they can track their listing performance.

Tucholski stated that like all web sites, grar.org is a work in progress. “We believe that the site must be a living and growing object that can flex and move for the benefit of our members.”

The Greater Rochester Association of REALTORS® represents more than 3,000 real estate professionals in the Greater Rochester and Finger Lakes region.

The REALTORS® Charitable Foundation (RCF), the philanthropic arm of the Greater Rochester Association of REALTORS® (GRAR), recently announced its First Quarter grant awards totaling $37,000, to local non-profit organizations. The foundation supports charitable organizations that help to increase affordable home ownership opportunities, build healthy neighborhoods, or mitigate critical housing needs.

NeighborWorks® Rochester was granted $30,000 to continue its Healthy Blocks partnership in the Main/Atlantic neighborhood, known as “The Pocket.” The Healthy Blocks initiative targets transitional neighborhoods and offers support to train community leadership, improve housing stock through neighborhood clean ups and provide low interest rate loans for home improvements. GRAR members have volunteered hundreds of hours to conduct community surveys, plant gardens, and build community leaders. Healthy Block efforts made in other Rochester area neighborhoods, most notably in the Swillburg neighborhood, have resulted in higher levels of owner occupancy and appreciated home values.

The Rochester Area Interfaith Hospitality Network (RAIHN) received $5,000 for its Homeless Family Emergency Housing Fund. RAIHN is a largely a volunteer organization whose goal is to increase the quality of life for homeless families in Rochester by enabling them to become self-sufficient and independent. Since 2004, 90% of the families that RAIHN placed in housing remained for at least a year.

The Providence Housing Development Corporation “Financial Literacy Program” was awarded $2,000 to support its Financial Literacy Program, which teaches tenants better management of day-to-day expenses and helps them prepare for long-term goals, including home ownership.

“These are good examples of how REALTORS® are giving back,” said Cindy B-Rosato, an area REALTOR® and chair of the RCF Board of Directors. “As real estate professionals, we recognize that a vital aspect of doing business is taking responsibility for helping to preserve and enhance the quality of life in our community,” she continued. “It’s a role that we take very seriously.”

Since its inception in 2001, the RCF has awarded over $430,000 in grants to 35 local non-profit agencies. The organization receives its support from area REALTORS®, the Greater Rochester Association of REALTORS®, proceeds received from the annual RCF Golf Classic held in July, and various other fundraisers.

To learn more about the REALTORS® Charitable Foundation and how you can support its efforts, visit www.rfoundation.org.

First Quarter statistics released by the Genesee Region Real Estate Information Services (GENRIS), the information subsidiary of the Greater Rochester Association of REALTORS® (GRAR) reveal an overall increase in sales within the regional housing market, as compared to First Quarter 2009.

Transactions for the First Quarter 2010 showed that there was a 9.3% increase over the First Quarter of 2009, with 1,802 homes sold. The overall median sale price of $113,000 reflected a 7.6% percent increase compared to last year at this time, which could be as a result of individuals taking advantage of the $6,500 Tax Credit for existing home owners. Pending sales for First Quarter 2010 reflected a 14.6% decrease compared to last year at this time. When compared to Fourth Quarter 2009, however, there was a 10.6% jump.

“This is good news for our local market,” remarked Carolyn Stiffler, board president of the Greater Rochester Association of REALTORS®. “We should be on track for a very strong Second Quarter.”

Stiffler noted that the extension and expansion of the tax credit in December was a critical factor in maintaining the momentum of the market.

“What we saw was an influx of first-time home buyers and existing homeowners taking advantage of the tax incentive,” continued Stiffler. “It truly was a “shot in the arm” for the real estate industry and the economy. For many individuals, it was the answer to their dream of homeownership.”

GRAR officials remarked that the 41.5% decrease between First Quarter 2010 and Fourth Quarter 2009 was a result of people wanting to take advantage of the initial tax credit before it expired in November of 2009. When the First-time Home Buyer Tax Credit took effect in early 2009, there was a lot of activity among first-time buyers, especially during the fourth quarter. People thought that they only had until November 30 to take advantage of credit, which is why we saw a large drop in homes sales between First Quarter 2010 compared to Fourth Quarter 2009.

In December 2009, new federal legislation not only extended the $8,000 Tax Credit for First-time Home Buyers but also included a $6,500 tax credit for eligible existing homeowners for the purchase of another principal residence. Both must have a written binding contract to purchase by April 30, 2010, which is when the tax credit expires. The purchaser will have until July 1, 2010 to close.

There were strong sales gains in several towns within Monroe County over First Quarter 2009. The most significant increases occurred in Parma at 86.7%, Brighton at 68.8%, Penfield at 37.8%, and Greece at 21.3%. Median sales prices also increased significantly in each of these areas, especially in Brighton, which could be a result of existing homes owners moving up.

GRAR will continue to support the local residential real estate industry through its TIME2BUY marketing campaign, which focuses on the benefits of owning a home and using the services of a REALTOR® when buying and selling a home.