The tax credit is over but interest rates are great

Given the choice between a 10 percent pay raise when inflation is 12 percent or a 4 percent raise when inflation is 2 percent, respondents almost always go for the bigger raise, even though it means they will lose ground, said Greg Salsbury, an executive vice president with Jackson National Life Distributors in Denver.

Rather than seizing opportunities, many people also tend to freeze up when there is too much uncertainty.

"Unemployment, the deficit and the overall economy are impacting people's decisions disproportionately," Salsbury said. "There are a lot of things in play."

Some mortgage brokers and bankers argue against complicated explanations about why buyers are missing in action.

"The majority of my borrowers used the $8,000 tax credit toward the down payment, and the seller paid closing costs," said Marilyn McConnell, a mortgage adviser with Cherry Creek Mortgage.

Lower interest rates don't help those buyers who can't come up with the needed down payment or who are trapped in a home they can't sell without taking a loss.

Great news for Bank of America Short Sales

BOA is now working on a project to clear out their pipeline of short sales that are over 90 days old. This is good news for clients that have files in with BOA over 90 days, however on files that are under 90 days old; these files are being place on the back burner by Bank of America to get to the older files. All in all, we’re seeing that BOA is taking about 120 days now to make a decision on a file.

That's great news for people who are wanting to get a good deal on a short sale. With the interest rates as low as they are, it's a great time to buy.

Experience with short sale this week

Well, well after waiting forever (what seems like forever) to get a short sale approved by BOA, the buyer's lender didn't come through. During the entire approval process of trying to get BOA to approve short sale, the buyer and the buyer's lender called continuously. When are they going to settlement? They are tired of waiting? They are going to buy another house? All of these questions, over and over. Called at least once a week, sometimes even twice or three times. Then we're finally ready to settle and the buyer doesn't qualify to buy the property. Every time they called I would reiterate to please have loan in place to settle. The lender and buyer assured me all is okay. Well not!!!! Very frustrating for my seller who has waited so long for this process to get approved for short sale and then buyer dumps on us. You would think that the lender would know the buyer didn't qualify after waiting months for approval of short sale. Property back on the market while buyer tries to get a co-signor. Never a dull moment in Real Estate.

Five Reasons Why to Buy Now

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.