Discover North Seattle: August 2008

Okay, so I finally got my first triathlon of this season over with last weekend!  I jumped into the season a little late, especially since Seattle's triathlon season lasts only a few months.

It was a beautiful, sunny morning and the water was perfect!  I think there were about 600 people athletes there, and their ages ranged from the early teens to the mid-60's. 

As most of you know, a torn knee ligament a couple years ago forced me to expand my athletic horizons beyond basketball and volleyball.  So I tried out a triathlon and I was soon hooked!

Now I have several triathlons lined up to do this season and the Beaver Lake Triathlon was last weekend.  I've never been to the Beaver Lake area before, but I'm glad I got to see it.  It's a very beautiful part of Sammamish.  The race course took me through Beaver Lake Park and the surrounding neighborhoods.  Sometimes I would turn a corner and see one of the neighbors outside their house offering water and encouragement.

The most grueling part of the race was the 14 mile bike ride because it felt like the entire thing was UPHILL!  There were several people who ended up walking their bikes up parts of the hill, but I made it up without even breaking a sweat!  Okay, I'm lying.  I made it up, but not without feeling like my legs were going to fall off.

Going downhill on the bike ride provided its own challenges.  My bike chain fell off twice.  The first time was the worst.  My chain notonly fell off, it also jammed around the crank and I spent about 15 minutes trying to pry it out as the other athletes I had passed earlier began to pass me.  That was lame!

The run portion was about 4 1/2 miles and I thought that would be the greatest challenge because the hilly bike ride.  I felt great throughout the run, though.  I even had enough wind to cheer on the other athletes I saw.

I'm still a little bitter about my chain coming off.  It killed my race time by at least half an hour!  So my goal is to get revenge at my next tri stop - the Escape from the Rock Triathlon on Mercer Island.

My wife, Juliana was kind enough to take some pics of me during the event.  So as soon as I get them off the camera, I'll post them here.

If you're interested in local triathlons, check out the websites http://www.envirosports.com or http://www.seatri.org and search for local events.

- Jay Silver

Tuesday, August 5th, 2008 marked the 25th anniversary of the National Night Out Against Crime.  My wife, Juliana, and I have been house-sitting for some friends in the Westminster area of Shoreline.  We got a special treat as locals from around the neighborhood gathered along the street to celebrate the Night Out.

It was so much fun meeting our new neighbors and enjoying some great food from the BBQ and beyond! 

Here are some pictures from the Night Out.

  The local fire station stopped by to greet the neighbors.

  There were about 40 or 50 people there enjoying great food.

  Kathy Marden, a driving force behind the success of this potluck celebration, also sponsored a bouncy toy for the kids.

  Kathy Marden (right) chats it up with the crowd.

  I got a picture with the local Fire Chief, Marcus Kragness.

It was a great night to be out, and I'm not just talking about the sunshine!  Everyone pitched in to make this annual tradition a big success!

Kudos to Kathy Marden and the Westminster Triangle Network for a great Night Out Against Crime!

- Jay Silver

This bill helps people in danger of foreclosure, for sure.  But there are also additions that may help you in your househunting journey.

I've just taken these highlights from the National Association of Realtors website and brought it to you here.  You can find this information at http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions?OpenDocument.

National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

H.R. 3221, the "Housing and Economic Recovery Act of 2008," passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

• GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates (PDF)

• FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates (PDF)
  FHA Reform Chart (PDF)

• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
  First-time homebuyer tax credit chart
  Frequently asked questions about the first-time homebuyer tax credit

• FHA foreclosure rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
  FHA Foreclosure Rescue Chart

• Seller-funded downpayment assistance programs - codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
  More about the seller-funded downpayment assistance provision
  Tips to finding downpayment assistance programs (PDF)

• VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

• Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

• GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

• Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

• National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

• CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
  More about the CDBG funding provision

• LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.

• Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

 - Jay Silver

Buying a home is still a smart long-term investment, regardless of what angle the media takes to sell the news.  Here are 5 reasons why:

1.)  Don't be shy.  The media loves to use the scary terms like, "national housing crisis" or "nation-wide real estate slump".  What they don't tell you is that real estate is not measured nationally, but locally!  Real estate is like the weather, it could be storms and floods in California while here in Seattle it's sunny and calm.  Just because parts of Florida are experiencing a major housing recession, that doesn't mean it's happening here in Seattle.  Did you know that 2 out of 3 of the nation's largest metropolitan markets showed home price increases in 2007?  I guess that wasn't a juicy enough story for the media. 

2.)  History is on your side.  Historically, homes have averaged over 6% appreciation in the Northwest.  And that's taking into account some rough economic times over the years.

3.)  It's a Buyer's Market.  There is always a balance of power between someone selling something and the person buying it.  Sometimes that balance is in the favor of the seller, sometimes it's with the buyer, and (rarely) sometimes both parties are equal.  From 2002 - 2006 the sellers of homes had the advantage because buyers were eager to get in on the housing boom.  Now it's the opposite.  There are so many houses on the market right now that buyers have so many more to choose from.  This puts the seller at a disadantage, leaving them to try and convince you that their house is the one you should choose.  This "convincing" comes in all kinds of forms, like low prices, "buyer bonuses" (cash back), as well as buying down the points on your loan.  You have the advantage as a buyer, and that's simply the best time to buy.

4.)  A solid long-term investment.  Historically, long-term home ownership has generated wealth.  Historically, long-term renting has not (except for the landlords that rent to you).

5.)  The tax man cometh, but he brings a smaller collection bag.  You can deduct your mortgage interest (which is the largest portion of your payment for the first 10 years), mortgage insurance, and property taxes.  You also aren't taxed on the first $250k (if you're single) to $500k (if you're married) if you sell and make more than what you bought the home for.  You may find that your after-tax mortgage payment is about the same as your rent payment!

So don't believe the "national" hype.  This is a great time to be buying a home in Seattle!

- Jay Silver

Hi All,

I'm finally back to blogging!  Lots of traveling and camping this summer got me a little distracted.  The weather has been so beautiful I had to take advantage!  Now, on to my post...

Most of you have probably heard the term "Title Insurance" if you've ever thought of buying a home.  What is it, anyway?  Well, in a nutshell, Title Insurance means you take over title after buying a home and don't have to worry about someone else's previous forgery, fraud, or incompetence with that home resulting in you losing your new home.  Lori Cantu of Fidelity Title and Escrow is part of my team here at ABODEN.com.  I always recommend Fidelity because they get it right the first time, with a smile!  Here are 20 reasons why you should get title insurance when buying a home.

20 Reasons for Title Insurance

1.)  Title Insurance will protect you against a loss on your home or land due to a title defect.

2.)  A deed or mortgage in the chain of title may be a forgery.

3.)  Claims constantly arise due to marital status and validity of divorces.

4.)  A deed or mortgage may have been made by an incompentent or under aged person.

5.)  A deed or mortgage made under an expired power of attorney may be void.

6.)  A deed or mortgage may have been made by a person with the same name as the owner.

7.)  A child born after the execution of a will may have interest in the property.

8.)  Title transferred by an heir may be subject to a federal tax lien.

9.)  An heir of other person presumed dead may appear and revover the property or an interest.

10.)  A judgment regarding the title may be voidable because of some defect in the proceeding.

11.)  By insuring title, you can eliminate delays when passing your title on to someone else.

12.)  Title Insurance helps speed negotiations when you're ready to sell or obtain a loan.

13.)  Tilte Insurance reimburses you for the amount of your covered losses.

14.)  A deed or mortgage may be voidable if signed while grantor was in bankruptcy.

15.)  Claims may have risen dramatically over the last 30 years.

16.)  Ther may be a defect in the recording of a document upon which your title is dependent.

17.)  Title Insurance covers attorney fees and court costs.

18.)  Many lawyers protect their clients as well as themselves by procuring title insurance.

19.)  A deed or mortgage may have been produced by fraud or duress.

20.)  A title policy is paid in full by the first premium for as long as you own the property.

- Jay Silver