Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac should be restructured as government-chartered, non-shareholder owned authorities, the National Association of Realtors® said in congressional testimony today.

"We want to ensure a flow of capital into the mortgage market regardless of the state of the market or economy," Vince Malta, NAR vice president and liaison to government affairs, testified to the House Financial Services Committee. "The new Fannie and Freddie must ensure there is always mortgage capital available for creditworthy buyers and that taxpayer dollars are protected."

In outlining NAR's proposal, Malta cautioned Congress and the administration about moving too quickly in restructuring the GSEs. "The housing recovery is still too fragile for the government to completely step away, and any disruption in the marketplace now by doing something too radical would be harmful," he said. "Our goal is to help Congress and our industry design a secondary mortgage model that will serve America's best interest today, and in the future."

Neither a fully privatized entity nor a fully nationalized structure for the secondary mortgage market giants effectively addresses the critical issues of loan availability and taxpayer protection, he said. A fully private entity would foster mortgage products more aligned with business goals rather than the nation's housing policy for consumers. "In difficult markets, like today's, private lenders have not been willing to make loans without government backing," said Malta.

A fully federal structure would put taxpayers at risk. "We want to eliminate any scenario that would place taxpayers on the hook to protect these entities. And to combine the two, or merge them with Ginnie Mae, would remove competition in the secondary market, and the new entity could lose focus on it missions to serve low- and moderate-income families and maintain liquidity in the mortgage markets," he said.

The new authorities should be subject to tighter regulations on products, profitability and minimal, retained portfolio practices in a way to ensure protection of taxpayer monies. The new entities would also concentrate on standard mortgage products that are the foundation of the housing finance market.

"While that might curtail some private participation and alternative products in this market, we believe privates will offer innovations that meet consumer needs. The new entities would focus on safe mortgage products, including 15- and 30-year fixed rate mortgages and traditional adjustable rate mortgages."

Malta also submitted a list of further recommendations.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

NAR's 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.

NAR Chief Economist Lawrence Yun said, "The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat," he said. "Investment buyers primarily seek rental income, with six in 10 planning to rent to others, although one in five wants a family member, friend or relative to use the home."

Only one in four vacation-home buyers plan to rent their properties to others, while one in five investment buyers plan to use their homes for vacations or as a family retreat. However, 26 percent of vacation-home buyers and 8 percent of investment buyers intend to use the property as a primary residence in the future.

The market share of homes purchased for investment was 17 percent in 2009, down from 21 percent in 2008, while the vacation-home share rose a percentage point to 10 percent. The total share of second homes declined from 30 percent of sales in 2008 to 27 percent last year. "First-time buyers were at record levels in 2009 with fewer sales of second homes," Yun said.

The median transaction price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008. "The higher vacation home price may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year," Yun said.

Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast. Seven out of 10 were detached single-family homes.

The median investment property sold for $105,000 last year, down 2.8 percent from $108,000 in 2008. There were more investment sales in the West in 2009, consistent with reports in California of a high share of all-cash purchases, notably in lower price ranges.

The distribution of investment sales was fairly close to the distribution of population: 35 percent in the South, 25 percent in the West, 24 percent in the Midwest and 16 percent in the Northeast. There was a higher share of condos in investment sales: 27 percent of investment homes were condos vs. 21 percent of vacation homes.
Similar to 2008, cash factored strongly in the second-home market: three out of 10 vacation-home buyers in 2009 paid cash for their properties, while half of investment buyers paid cash. Fairly similar ratios for each group indicated portfolio diversification or good investment opportunities were factors in the purchase decision.

The typical vacation-home buyer in 2009 was 46 years old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence; 34 percent were within 100 miles and 40 percent were more than 500 miles.

Investment-home buyers last year had a median age of 45, earned $87,200, and bought a home that was relatively close to their primary residence - a median distance of 24 miles. Roughly one in four investment buyers purchased more than one property in 2009.

Three out of four second-home buyers were married couples.

Demographically, the long-term demand for second homes looks favorable because large numbers of people are in the prime years for buying a second home. "Historically, people become interested in buying a second home in their mid 40s," Yun said. "The large number of people who are now in their 30s and 40s will dominate the second-home market in the coming decade with a strong underlying demand, although sales in a given year will vary depending on the economy. Mortgage lending for second homes was extraordinarily tight in 2009 but it is likely to ease a bit in 2010."

Currently, 40.1 million people in the U.S. are ages 50-59 - a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 44.4 million people are now in the primary buying demographic of 40-49 years old, and another 40.6 million are 30-39.

Buyers were more likely to purchase investment homes within a metropolitan area, while vacation homes were generally located in a rural area, small town or resort.

Vacation-home buyers plan to keep their property for a median of 16 years while investment buyers plan to hold their property for a median of 12 years.

NAR's analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 41.1 million investment units in the U.S., compared with 75.0 million owner-occupied homes.

NAR's 2010 Investment and Vacation Home Buyers Survey, conducted in March 2009, includes answers from 1,930 usable responses. The survey controlled for age and income, based on information from the larger 2009 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

STRATEGY ON LEASE CONCESSIONS

Lebovitz said that CBL has been signing more leases at shorter terms (three years or less) than usual.

"We've done shorter terms so we're not locked in at the lower rates," said Lebovitz. As a trade-off for agreeing to shorter terms and lower rental rates, Lebovitz said that CBL has a checklist of items they might negotiate to make the lease a win-win for both parties, including improving the percentage rent and the breakpoint. When retailers' sales improve, CBL's chance to sign leases at higher rents will improve. Additionally, "As sales pick up, then we'll benefit from percentage rent as well," he said.

At Regency, Stein explained that the tables seem to be turning again in terms of what retailers are willing to give up in order to get lease concessions.

"In the past, whenever we were giving concessions to the retailers, we always got termination rights and we held those concessions to very short terms. Now, the retailers appear to not be willing to enter into those kind of lease modifications because they don't want the risk of losing the store. They are looking more long-term," he said.

Stein added, "They've survived this long; which means they've got a loyal customer base and they don't want to risk that. And frankly, we are seeing a lot of people talking about how they are not able to get any TIs at other centers and the lenders aren't keeping up the centers. So there is not only reluctance not to leave, but we're getting a fair share of people wanting to move into our centers because they know we take care of them."

Since demand has improved somewhat, so has retailers' requirement for tenant improvement allowances, said Lukes at Kimco. "TIs have definitely pulled in a lot from six to eight months ago. Where that might be different is if the building is very old and needs to have a lot of work done to it," he said.

At Inland, Scott Carr, president of property management, said when it comes to expectations for tenant improvement allowances, he hasn't seen a significant change in what national tenants request, but small shop tenants are requesting landlord participation more than in the past.

RENT RELIEF REQUESTS

Zalatoris said that Inland has seen the amount of rent relief requests decrease significantly, but added that smaller, "Mom 'n Pop" tenants remain under pressure. CFO Brett Brown added, "We've definitely seen a slowdown in the requests and we've always taken the aggressive posture in responding to them. With our Mom and Pop tenants, the ultimate price that we extract is a right to recapture their space. That's a tough decision for someone who has a successful business that just needs to carry them through. We're finding a lot of those Mom 'n Pop retailers seeing the light at the end of the tunnel and even backing off with some requests when we put them to that ultimate test."

"When a struggling small shop tenant's prospect for success appears limited, and given the decline in the formation of new small shop startup retailers, we often look to competing centers for replacement tenants," in dealing with such situations, said Zalatoris.

Michael Sullivan, SVP of asset management for Ramco said rent relief requests have gone "down to a trickle."

"Requests for rent relief are down substantially," said Coppola. "A year ago at this time, I think while nobody knew exactly where the failures were going to come, people were relatively convinced that they were coming. The profitability of retailers overall in our portfolio has dramatically improved [in comparison to] one year ago today, so our anticipation is that rent relief requests are going to be way down and unexpected failures will also be down from what they were last year."

WHERE IS MARKET RENT?

In addressing whether or not "market rent" has bottomed out yet, Stein at Regency said, "In most markets, it has bottomed. Obviously a lot of the rents that are out there have to reset to the new market, but it has bottomed. There are exceptions for that -- I don't think we've seen it in the deserts; but I think pretty much everywhere else, we feel bottomed and that the retailers would tell you that they've hit bottom."

At Inland, Carr said, "I would say we are closing in on a bottom, because we've dropped pretty far," adding that 10% to 50% drops have been observed, depending on the sub-market and spaces involved. He thinks the bottom has definitely been reached on small shop rents. "Retailers realize that they can only go so low if they are going to have a viable landlord that can participate in a deal in terms of building out space and TIs," said Carr. In looking ahead, Carr said that opportunities to push rents on renewals and new leases are just starting to peak through, but overall, we should not expect the trajectory of rents trending up to happen even nearly as fast as the trajectory coming down has been.

UPTICK IN LEASING ACTIVITY

Kimco said that fourth quarter 2009 brought a "large uptick" in small shop leasing activity, and while rents were "wildly divergent" depending on the characteristics of their respective markets, in aggregate, new leases signed were still slightly higher than the previous tenant in the space.

Demand has also improved for junior anchor space, said David Henry, president and CEO at Kimco. "A lot of retailers are now submitting Letters of Intent on junior anchor spaces that four or five months ago had no activity, but I certainly wouldn't expect the rent spread on the junior anchors to improve" soon, he said.

Inland said it is seeing an improvement in leasing activity. "The leasing velocity we are now experiencing and the quality of tenants with whom we are dealing, indicates that we are building a strong foundation for restoring occupancy and growing rental income within the portfolio," said Zalatoris.

Arthur Coppola at Macerich said while his firm isn't banking on it, he is hopeful that the recent increase in retailer interest will lead to an improvement in occupancy and rents spreads this year.

LOOKING AHEAD

At CBL, Lebovitz said that during 2009, retailers definitely had the upper hand in negotiations, but "as the economy improves, we will be able to get back to where we were, or even better with the retailers." Additionally, the lack of any new development puts landlords in a better position going forward, especially those that have made improvements to their shopping centers during this recession. That being said, Lebovitz does not believe rent spreads will improve dramatically this year, as the priority remains signing leases and improving occupancy.

Smith at Regency said, "Retailers are still struggling. Tenant failures and move outs remain a concern and pressure on rents is expected to continue until occupancy rates return to levels previously seen. This is particularly true in 'green' areas where [population] densities are light."

At Simon Property Group, David Simon said, "Part of what we'll suffer for in 2010 is the deals we did in 2009. When we did them, the retailer was feeling a lot worse about things than they are today," said Simon. However, retailers remain intensely focused on expenses and rents and continue to close stores. "2009 was a challenging year in the retail real estate world and 2010 is going to be a challenging year, too," he added.

Addressing when he expects rent spreads to return to historical norms, "I don't think we can get to historical numbers until there's a stronger economy and stronger demand from retailers," said David Simon, adding that we're not in that environment yet. On the heels of this comment, Richard Sokolov added, "sales, cash flow and profitability have been substantially better for retailers," so that will work in landlord's benefit for negotiations in 2010, he said.

Looking ahead this year, Zalatoris at Inland said, "While showing signs of the improvement, the operating environment for retailers still remains challenging. We expect additional re-entrenchment in certain retail segments this year and potentially some national chain failures as well."

At CBL, Lebovitz said, "As retailers reformulated their business plans in 2009 to focus on controlling inventory levels and reducing cost, they reported improving margins and better profit ability. Despite the negative sales comps today, many of these retailers are better able to [manage] current occupancy cost, which goes well for the easing of the rent pressure, as we progress through 2010." 

Information provided by CoStar.

• New Frontier Bank, Greeley, CO; $1.8 bil. in assets New Frontier failed because its board and management did not implement adequate risk management practices pertaining to rapid growth and significant concentrations of residential acquisition, development and construction (ADC) and agricultural loans.
  
  
• First Bank of Beverly Hills, Calabasas, CA; $1.3 bil. in assets First Bank failed because its board and management did not adequately manage the risks associated with the institution's heavy concentrations in commercial real estate (CRE) and ADC loans and investments in mortgage backed securities (MBS).
  
  
• Cooperative Bank, Wilmington, NC; $973.6 mil. in assets Cooperative Bank failed because its board and management did not adequately manage the risk associated with the institution's aggressive real estate lending, particularly in the area of residential.
  
  
• Strategic Capital Bank, Champaign, IL; $537.1 mil. in assets Strategic Capital's failure can be attributed to the board and management's speculative and ill-timed growth strategy involving high-risk assets and volatile funding. Strategic Capital's rapid growth strategy was in contravention to long-standing supervisory guidance related to CRE concentrations and securities.
  
  
• Cape Fear Bank, Wilmington, NC; $466.8 mil. in assets Cape Fear failed because its board and management did not implement effective risk management practices pertaining to rapid growth and significant concentrations of CRE and ADC loans.
  
  
• Mirae Bank, Los Angeles, CA; $410 mil. in assets Mirae failed because its board and management pursued an aggressive growth strategy centered in CRE lending and failed to ensure sound loan underwriting practices.
  
  
• Southern Community Bank, Fayetteville, GA; $380.6 mil. in assets Southern Community failed because of a rapid deterioration in asset quality that led to loan and operational losses that quickly eroded the bank's capital. The majority of Southern Community's lending was in CRE, with a particular focus on ADC loans.
  
  
• Westsound Bank, Bremerton, WA; $324.1 mil. in assets Westsound failed because its board and management did not implement risk management practices commensurate with rapid asset growth and a loan portfolio with significant concentrations in higher-risk ADC loans.
  
  
• America West Bank, Layton, UT; $310 mil. in assets America West Bank failed because the bank's board and management deviated from the bank's business plan and did not effectively manage the risks associated with rapid growth in CRE and ADC lending.
  
  
• FirstCity Bank, Stockbridge, GA; $291.3 mil. in assets FirstCity failed because its board and management pursued a strategy of aggressive growth centered in ADC lending.
  
  
• Great Basin Bank, Elko, NV; $228.8 mil. in assets Great Basin failed because its board did not ensure that bank management identified, measured, monitored, and controlled the risk associated with the institution's lending activities. The institution's loan portfolio included, but was not limited to, out-of-territory purchased participation loans from areas that experienced a significant economic downturn starting in 2007, and a concentration in CRE loans.
  
  
• Bank of Lincolnwood, Lincolnwood, IL; $217.4 mil. in assets Lincolnwood failed because the bank's board and management did not implement adequate risk management practices pertaining to a significant concentration in ADC loans.
  
  
• Millennium State Bank, Dallas, TX; $121.4 mil. in assets MSB's failure can be attributed to inadequate management and board oversight, an aggressive growth strategy centered in CRE lending, weak loan underwriting and credit administration, poor earnings, and an inadequate funding strategy.
  
  
• American Southern Bank, Kennesaw, GA; $113.4 mil. in assets American Southern failed because its board and management materially deviated from its business plan by pursuing a strategy of growth centered in ADC lending.
  
  
• MetroPacific Bank, Irvine, CA; $75.2 mil. in assets MetroPacific, a de novo bank, failed primarily because it lacked stable and consistent management and oversight as a result of significant turnover in key management positions. The bank's board and management were particularly ineffective in implementing risk management practices pertaining to adherence to the bank's business plan and rapid growth and concentrations in CRE and ADC loans.
  
  
• Bank of Wyoming, Thermopolis, WY; $72.8 mil. in assets The Bank of Wyoming's failure can be attributed to the board and management's pursuit of loan growth funded significantly with brokered and other non-core deposits. The bank's loan portfolio was concentrated in CRE and ADC loans made to out-of-area borrowers, obtained through loan brokers and participations purchased.

Information provided by CoStar

     Very few people are aware that if a property tax valuation remains the same as the previous year's bill the owner must file a "Property Tax Return" with their tax assessor's office after January 1, 2010 (deadlines vary) in order the have the right to appeal their 2010 property tax assessment.  These forms can be obtained from each of the metro county tax assessor's offices and we have provided links to the forms and/or instructions for various counties below. If your county is not included, you can search for the respective office online by using the search words: "_________ [insert the name of County] County Tax Assessor". Most sites include a section for "Frequently Asked Questions or FAQ's, which will include this information.  Remember that this is simply a first and necessary step to appeal your taxes where there has not been an increase in assessment from the previous year; it is not the actual appeal.

Cobb County:

www.cobbassessor.org/content/pdffiles/Tax%20Payer's%20Return%20of%20Real%20Property.pdf

Once the "Taxpayer's Return of Real Property" form (link to form provided) is filed, the appraisal staff will review your stated opinion of value to determine if any adjustments should be made. A tax return is not an appeal. If your opinion of value is not accepted, you will be sent a Change of Assessment Notice, indicating the county's current and prior year valuation. If you are not satisfied with this proposed value, you must then file a written appeal within 45 days of the date the Change of Assessment Notice was mailed. For further questions, call Cobb County Tax Assessor's office at 770-528-3100.

Dekalb County:

You must file a "Taxpayer's Return of Real Property" form (PT-50R return of value form) between January 1, 2010 - April 1, 2010.  The form is not available online and can only be obtained by calling the Dekalb County Tax Assessor's office at 404-371-0841 and requesting the form after the first of the year.

If the county board of tax assessors disagrees with the taxpayer's return, the board must send an assessment notice which gives the taxpayer information on filing an appeal.  
Taxpayers may challenge an assessment by the county board of tax assessors by appealing to the county board of equalization or to an arbitrator within 30 days from the date of the change of assessment notice that is mailed by the board of tax assessors.

Fulton County:

www.fultonassessor.org/content/pdffiles/HomesteadFormFront.pdf

www.fultonassessor.org/content/pdffiles/HomesteadFormBack.pdf

After completing the top of the form (links provided), look for #3 to complete the "taxpayer assessment" or "TPA". This number is your opinion of the Fair Market Value. Note that the form must be mailed via certified mail and post-marked between 1/1/10 - 4/1/10.  The return must be accompanied by a copy of your photo i.d.  For further questions, call Fulton County Tax Assessor's office at 404-224-0102.

Gwinnett County:

You must file a "Taxpayer's Return of Real Property" form between January 1, 2010 - March 1, 2010.  The form is not available online and can only be obtained by calling Gwinnett County Tax Assessor's office at 770-822-7200 and requesting the form after the first of the year.

You can start the appeal process by completing and mailing or hand-delivering the "Taxpayer's Return of Real Property," to the Board of Assessors' Office at 75 Langley Dr., Lawrenceville, GA 30045. Once the "Taxpayer's Return of Real Property" form is filed, the appraisal staff will review your valuation to determine if any adjustments should be made. The "Taxpayer's Return of Real Property" form lists a summary of the information concerning property identification, ownership, mailing address and previous year's value. In the column headed "Current Year Taxpayer 100% Stated" you declare what you believe to be the fair market value of your property. A tax return is not an appeal.  Upon the assessor's review of your property valuation, you will be sent notification of the results in April via an assessment notice. The assessment notice will indicate the county's current and prior year valuation. The assessment notice will give you a 30-day period in which you may file an appeal. Instructions for filing an appeal are in the assessment notice which will be sent to you in April.

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Keep coming back to get more up to date news on todays Real Estate Market.

Ron Farber
Manafing Broker
Beacon Realty of Georgia
404-925-5002

An upcoming trend in home marketing is based on an old-fashioned idea: walking.  

Walking is a terrific way to maintain a healthy lifestyle and according to a new study, "walkability" also contributes to increased home values.

"Walking the Walk: How Walkability Raises Housing Values in U.S. Cities" reports that homes in areas where shopping and social destinations are in walking distance command anywhere from $4,000 to $34,000 more than homes that aren't.

The study measures a neighborhood's walkability by using the Walk Score algorithm.  The more consumer destinations within walking distance of the home, the high the Walk Score; Walk Scores range from 0 to 100. 

Featured Property offered by Beacon Realty of Georgia -  3092 Nichols Street, Smyrna, GA 30008. Nestled in the Medlin Place subdivision, this prestigious home features "Walkability".  It is located only blocks from the popular Smyrna Market Village!  Check out the local attractions and the upcoming Smynra Market Village Events.

Featured in Atlanta New Homes Directory - 
Liberty Square Park, presented by Beacon Realty of Georgia, is located in Henry County, one of the fastest growing counties in the nation! Offering beautiful, affordable homes and an outstanding amenities package.

Officials with the City of Atlanta recently expressed concerns that foreclosures and more stringent lending requirements may cause a decline in the city's home ownership rate, which was estimated to be 50 percent in U.S. Census data from 2007.

Recognizing that two of the biggest obstacles to home ownership are household income and the ability to make a downpayment, the Atlanta Development Authority (ADA) is ramping up its mortgage assistance programs and pursuing federal dollars in order to expand its program.

Through its HOME Atlanta program, the ADA has provided downpayment assistance to nearly 400 families since 2007.  The ADA reports that its housing finance department closes eight to ten loans per week as prospective buyers scramble to take advantage of the deflated real estate market and the $8,000 federal tax credit for first-time homebuyers.  The deadline for the tax credit was recently extended until April 30, 2010.

ADA targets its programs to middle-income working families. The average family income among program participants is $46,500, and the average purchase price of homes that have closed is $161,200.  Participants  are buying single family detached houses, as well as townhomes and condos.

What makes a $161,000 home affordable to someone earning just $46,000?  The homebuyer can take out a smaller loan since the development authority is subsidizing the downpayment. This reduces their monthly payment to somewhere around 35 percent of their income and allows them to qualify for a conventional 30-year, fixed rate mortgage.

Based on an analysis of where the homes are located, the most popular neighborhoods are Greenbriar/Campbellton Road (NPU R), those around Lakewood Amphitheater, Downtown/Old Fourth Ward (NPU M), South Atlanta/Amal Heights (NPU Y), and the historic neighborhoods around Turner Field (NPU V).  The kinds of jobs the buyers have are what one might expect; teachers, healthcare workers, government workers and retail/hotel/restaurant managers. Unfortunately, only one percent of the 400 closings have included law enforcement officers. ADA would like to see more police officers and firefighters participate in the program going forward and is working with the Atlanta Police Foundation to help increase awareness.

The Georgia Department of Community Affairs announced a new down payment assistance option to its Georgia Dream Homeownership Program. The Georgia Dream "Plus" option offers down payment and closing cost assistance for first time home buyers with incomes up to 100% of their Area Median Incomes (AMI). Georgia Dream's down payment assistance options are normally restricted to borrowers whose incomes are at or below 80% AMI. This assistance comes in the form of a second mortgage loan, with a zero percent interest rate and requires no repayment until the home is sold, refinanced, or no longer used as the principal residence of the borrower.

The Georgia Dream "Plus" option provides $5,000 for down payment and closing costs to borrowers whose total annual household income does not exceed the following:

In the Atlanta MSA:
     One to two person household- $71,000
     Three or more person household- $82,000

In all counties outside the Atlanta MSA:
     One to two person household- $61,000
     Three or more person household- $70,000

"We are excited about the Georgia Dream "Plus" option. We hope this additional incentive for Georgia's home buyers will help continue the current momentum in the home buying market," says DCA Commissioner Mike Beatty.

Georgia Dream's "Plus" option can be used in conjunction with the Federal & State tax credit for first time home buyers. The "Plus" option is available to eligible borrowers through Georgia Dream participating lenders and must be used in conjunction with a Georgia Dream first mortgage loan.

There is limited funding for Georgia Dream "Plus," therefore, all interested borrowers are encouraged to check with a Georgia Dream participating lender soon.

On Friday, November 6, President Barack Obama signed into law a bill that extends unemployment benefits and the first-time homebuyer tax credit.  The bill also includes a provision that both extends and expands net operating loss (NOL) carryback for businesses.  The bill received strong bipartisan support, passing 98-0 in the Senate and 403-12 in the House.

The new NOL provision allows any business with a loss in either 2008 or 2009 to claim refunds of taxes paid within the prior five years.  There is no limit on carrybacks for the first four years of the carryback period.  For year five, the carryback is limited to 50 percent of a company's taxable income in that year.

A limited NOL provision was enacted in February as part of the American Recovery and Reinvestment Act (ARRA).  It excluded businesses with more than $15 million in annual gross receipts and allowed only a two-year carryback of losses.  

The National Association of REALTORS® and its coalition partners favored extending and expanding NOL carryback, arguing that it would give all U.S. companies access to a much-needed and quick infusion of cash and would be particularly helpful to real estate companies struggling to make payroll, maintain commercial properties, and stave off foreclosure or bankruptcy.

San Diego, November 15, 2009

Not all buyers are suited for a short sale. This was one of the messages delivered at "Short Sales from the Buyer's Perspective" during the 2009 REALTORS® Conference & Expo today.

According to the latest Realtors® Confidence Index, one out of 10 recent buyers purchased a home through a short sale. The survey also showed that Realtors® are concerned about the hurdles buyers face in short sales.

"As short sales become more commonplace, both buyers and sellers need the help of seasoned, experienced professionals to help them navigate the complexities of a short sale transaction," said National Association of Realtors® President Charles McMillan. "As the first, best source for real estate information, Realtors® provide valuable insights and experience that can help buyers realize their homeownership goals, whether through a short sale or other means."

During the session, Realtor® Lynn Madison, who co-authored NAR's new Short Sales and Foreclosure Resource (SFR) Certification Program, detailed the primary reasons that short sales fail, including an incomplete short sale package, an offer that is too low, and inaccurate appraisals. According to Madison, buyers who are good candidates for short sales are very patient - it can take some lenders four months or longer to approve a short sale - have their financing in order, and don't have any contingencies in their purchase offer.

"Short sale buyers need to have the time to be able to wait for the lender's approval; some lenders get several hundred contacts every day," said Madison. "Buyers must also be willing to make an offer that has a reasonable chance of closing and take guidance from their agent. If the offered price is too low, there is a good chance the lender won't approve the contract."

To help Realtors® address the evolving short sales market, NAR launched the SFR Certification Program earlier this year. Offered by the Real Estate Buyer's Agent Council of NAR, the program includes training on how to manage short-sale, foreclosure, and real-estate owned transactions, and provides resources to help Realtors® stay current on national and state-specific information. More than 250 Realtors® have earned the SFR certification since the program was first offered in September. For more information, visit www.realtorsfr.org.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.